McKnight, Inc , restores antique automobiles The retained earnings balance of the corporation was $23,500 at December 31, 2011 During 2012, the corporation paid $40,000 in dividends to its stockholders At December 31, 2012, the businesss accounting records show these balances Requirement 1 Prepare ...

a McKnight Inc Income Statement Year Ended December 31 2012 Service revenue ...

McKnight, Inc., restores antique automobiles. The retained earnings balance of the corporation was $23,500 at December 31,

Question:

McKnight, Inc., restores antique automobiles. The retained earnings balance of the was $23,500 at December 31, 2011. During 2012, the paid $40,000 in dividends to its stockholders. At December 31, 2012, the business€™s accounting records show these balances:

Requirement
1. Prepare the following financial statements for McKnight, Inc.:
a. Income statement for the year ended December 31, 2012
b. Statement of retained earnings for the year ended December 31, 2012
c. Balance sheet at December 31,2012

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...