Anne Marie, the owner of Annes Beauty Salon, comes to see you again. She tells you that she has one more question for you. She told you that her accountant tried to explain to her the closing process in the accounting cycle. The more he talked, the more confusing it got. How would you explain the closing process to Anne Marie? She also asked about dividends. What are they? Will they increase expense?

Tahom 9 w [p Copy BIDEA 333Merg Paste 3 Format Pinter Clipboard Alignment Font 123 Commenti A B D E Note, Income Statements should be mo 1 Anne's Beauty Salon, Inc 2 Income Statement 3 For the Year 2015 4 Sales (Revenue) $ 125,000.00 5 Cost of Sales $ 25,000.00 6 Gross Profit $ 100,000.00 7 8 Payroll Expense $ 67,500.00 Sales, General, 9 Administrative Expenses 5,000.00 10 Rent Expense $ 1,400.00 11 Utilities Expense $ 1,670.00 12 Insurance Expense $ 500.00 13 Depreciation Expense 2,500.00 14 Total Operating Expense $ 78,570.00 15 Total Operating Income 21,430.00 16 Taxes 30% $ 6,430.00 17 Net Income $ 15,000.00 18 unusu 19 20 21 22 23 24 25 + Formulas Data Review View File Page Layout Home Insert X Cut 2 Wrap Text Calibri 11 A A E A Accounting $ % [B Copy Merge & Center Paste BTU Format Painter Number Font Alignment Clipboard E13 E D C A B 1 Anne's Beauty Salon, Inc 2 Balance Sheet 3 At December 31, 2015 4 Assets s Current Assets 6 Cash $ 7 Accounts Receivable $ 8 Supplies $ 9 Prepaid Rent S 20 Prepaid Insurance S 11 Total Current Assets $ 72 Equipment $ 25,000.00 13 Less: Accumulated Depreciatio $ (5,000.00) $ 14 Total Long-Term Assets $ 15 16 Total Assets $ 17 18 19 20 21 22 23 24 25 26 27 28 29 Liabilities Current Liabilities 949.50 Accounts Payable S 5,000.00 11,948.00 Unearned Revenue $ 200.00 20,500.00 Total Current liabilities $ 5,200.00 8,400.00 6,000.00 47,797.50 Note Payable $ 15,000.00 Total Liabilities S 20,200.00 20,000.00 Stockholders' Equity 20,000.00 Common Stock $ 30,000.00 Retained Earnings $17.597.50 67.797.50 Total Liabilities and Stockholders' Equi $ 67,797.50 A B 1 Anne's Beauty Salon, Inc 2 Statement of Retained Earnings 3 For the Month Ending December 31, 2015 4 5 Retained Earnings, December 1 $ 5,000.00 6 Add: Net Income $ 15,000.00 7 Subtract: Dividends $ (2,402.50) 8 Retained Earnings, December 3 $ 17,597.50 9 10 1 12 13 14 15 16 17 18 19 20