Prepare the income statement and balance sheet; identify certain financial information (Learning Objective 6) 25–30 min.

Presented here are the amounts of Assets, Liabilities, Stockholders’ Equity, Revenues, and Expenses of Fast and Fit, Inc., at March 31, 2014. The items are listed in alphabetical order.

The retained earnings balance of the business was $132,700 at March 31, 2013.
Requirements 1. Identify each amount shown as an asset, liability, or stockholders’ equity.
2. Prepare the company’s income statement and statement of retained earnings for the year ended March 31, 2014.
3. Prepare the company’s balance sheet at March 31, 2014.
4. Answer these questions about the company:

a. What was the profit or loss for the year?

b. What was the increase or decrease of retained earnings for the year?

c. What is the amount of economic resources on March 31, 2014?

d. What is the amount owed on March 31, 2014?AppendixLO1