Assume that you are the president of Nuclear Company. At the end of the first year of operations (December 31, 2014), the following financial data for the company are available:

Required
1. Prepare an income statement for the year ended December 31, 2014.
Begin by classifying each account as asset, liability, shareholders' equity, revenue, or expense. Each account is reported on only one financial statement.
Net Income = $21,950
2. Prepare a statement of retained earnings for the year ended December 31, 2014.
Because this is the first year of operations, the beginning balance in Retained Earnings will be zero.
3. Prepare a balance sheet at December 31, 2014. TIP: The balance sheet includes the ending balance from the statement of retained earnings.
Total Assets = $115,500.

Transcribed Image Text:

Cash $12,000 59,500 8,000 Accounts Receivable Supplies on Hand Equipment Accounts Payable Notes Payable Sales Revenue 36,000 30,297 1,470 88,000 57,200 8,850 Operating Expenses Other Expenses Contributed Capital 61,983 Dividends 200