1. What amount would retained earnings have to be to ensure that our Accounting Equation is in balance?

Revenue and Expenses for the fiscal year were as follows:

Revenues ..................................................$653,000

Minus expenses

Cost of Services- Expense ........................$420,000

Salaries / Benefits Expense .......................$170,000

Utilities Expense .........................................$12,000

Interest Expense .........................................$22,000

Net income or (Net Loss) ........................................?

2. What is the annual net income for the corporation?

3. Complete the statement of retained earnings for the fiscal year ending December 31, 2010.

Beginning Retained Earnings$20,000

+ Net Income or - Net Loss:

- Dividends:

= Ending Retained Earnings

4. Complete the Balancesheet.

Transcribed Image Text:

Elder Services of Springtown AL Corporation Balance Sheet December 31, 2010 Assets Amount Liabilities Cash Accounts Receivable Bldg Furn Equipment, net Investments Amount 71,000 250,000 321,000 20,000 Current 40,000 Long Term 246,000 Total Liabilities 70,000 Owners Equity Commons Stock Retained earnings Total Owners Equity 12,000 Total Assets 376,000 Total Liabilities & Owners S 333.000 Equity