Assume that you are the president of High Power Corporation. At the end of the first year

Question:

Assume that you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Accounts Payable………………………. $ 32,100
Accounts Receivable……………………… 9,550
Cash……………………….……………… 13,300
Common Stock…………………………… 59,090
Dividends………………………………….. 1,950
Equipment………………………………... 86,000
Notes Payable……………………………… 1,160
Operating Expenses………………………. 58,700
Other Expenses…………………………….. 7,850
Sales Revenue……………………………. 90,000
Supplies……………………………………. 5,000

Required:
1. Prepare an income statement for the year ended December 31.
2. Prepare a statement of retained earnings for the year ended December 31.

3. Prepare a balance sheet at December 31.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...