The following information was obtained from the chart of accounts for The Rusty Nail Inc., a chain
Question:
The following information was obtained from the chart of accounts for The Rusty Nail Inc., a chain of bars: Cash $229,000 Common Stock $1,750,000 Utilities Exp. $63,000 Inventory $228,000 PIC – Common Stock $172,000 Dividends $0 Bar Supplies $25,000 Retained Earnings $30,000 Furniture $218,000 Sales Revenue $1,090,000 Equipment $1,502,000 Cost of Goods Sold $585,000 Accounts Payable $30,000 Rent Expense $100,000 Notes Payable $128,000 Salaries Expense $250,000 1. Input the above account balances in an expanded accounting equation. Update the worksheet showing the following transactions: a. April 22, Issued 1,200 shares of common stock with a par value of $1 for $20 per share. b. Paid a cash dividend of $50,000. c. Close the revenue, expense, and dividend accounts to retained earnings. 2. Prepare a statement of retained earnings for The Rusty Nail Inc. for April 30, 2xxx. 3. Determine total paid in capital and total equity
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton