Financial Statements A list of accounts for Lloyd Inc. at December 31, 2010, follows:

LO2,3,4 LO2,3 Accounts Receivable $ 56,359 Advertising Expense 12,900 Capital Stock 50,000 Cash 22,340 Dividends 6,000 Income Tax Expense 1,450 Income Tax Payable 1,450 Inventory:

January 1, 2010 6,400 December 31, 2010 5,900 Purchase Discounts $ 1,237 Purchases 62,845 Retained Earnings, January 1, 2010 28,252 Salaries Payable 650 Sales 112,768 Sales Returns 1,008 Transportation-In 375 Utilities Expense 1,800 Wages and Salaries Expense 23,000 Wages Payable 120 Required 1. Determine cost of goods sold for 2010.

2. Determine net income for 2010.

3. Prepare a balance sheet dated December 31, 2010.

AppendixLO1