On December 31, 2011 (the end of its first year of operations), Minute Print Company had the following account balances:
Bank loan (due in three years)…………………………………..$ 40,000
Wages expense………………………………………………….. 93,000
Materials and supplies on hand…………………………………. 68,000
Dividends payable………………………………………………. 1,500
Sales…………………………………..…………………………. 486,000
Cash……………………………………………………………… 24,000
Materials and supplies used……………………………………… 214,500
Wages payable…………………………………………………… 4,500
Prepaid rent……………………………………………………… 2,000
Interest paid on loan…………………………………………….. 2,500
Rent expense—equipment………………………………………. 100,000
Dividends declared……………………………………………… 3,000
Accounts payable………………………………………………... 8,000
Share capital…………………………………..…………………. 30,000
Rent expense—premises………………………………………… 24,000
Accounts receivable……………………………………………… 30,000
Other expenses…………………………………………………… 9,000
Retained earnings…………………………………………………?
Required:
a. Identify the accounts that would appear on the statement of earnings, and use them to calculate the net earnings for the year.
b. Find the amount of retained earnings at December 31, 2011, by subtracting the dividends declared from the net earnings you calculated in part "a."
c. Prepare a classified statement of financial position for December 31, 2011. Use the retained earnings amount calculated in part "b."