Exercise $1.$

Preparing financial statements and evaluating business performance

Presented here are the accounts of ABC Corporation for the year ended December $31,2024.$

Land

Note payable

Property tax expense

Dividends

Rent expense

Salary expense

Salary payable

Service revenue

Supplies

Retained earnings, $\frac{12}{31}\frac{?}{2023}$

Requirements

Prepare ABC Corporation's income statement.

Prepare the statement of retained earnings.

Prepare the balance sheet.

Answer these questions about the company:

a$.$ Was the result of operations for the year a profit or a loss? How much?

b$.$ How much in total economic resources does the company have as it moves into the new year?

c$.$ How much does the company owe to creditors?

d$.$ What is the dollar amount of the stockholders' equity in the business at the end of the year?