ASSETS RESOURCES OF THE COMPANY I ACCOUNTING EQUATION = LIABILITIES DEBT OWED TO OTHERS + STOCKHOLDERS' EQUITY CONTRIBUTED CAPITAL Put the following ending balances into the balance sheet and income statement. Note, Net Income will be used twice! Then use this information to answer the Extra Credit Quiz on CANVAS. OPERATING EXPENSES $3,000, DIVIDENDS $7,000, INVENTORY $20,000, ACCOUNTS RECEIVABLE $1,000, PREFERRED STOCK $15,000, SALES/REVENUES $25,000, BUILDINGS/EQUIPMENT $12,000, COMMON STOCK $20,000, ACCOUNTS PAYABLE $5,000, WAGES PAYABLE $2,500, COST OF GOODS SOLD $8,000, NET GAIN/LOSS $0, LONG-TERM NOTES PAYABLE $15,000, CASH $35,000, BEGINNING RETAINED EARNINGS $3,500 RETAINED EARNINGS BEG BAL R/E + NET INCOME +-NET GAIN/LOSS - DIVIDENDS = END BALANCE R/E INCOME STATEMENT SALES/REVENUES COST OF GOODS SOLD = Gross Profit / Gross Margin - OPERATING EXPENSES = NET INCOME

QUESTIONS:

1. total assets=

2.total liabilities=

3. total contributed capital=

4. gross margin=

5. net income=

6. ending retained earnings=

ACCOUNTING EQUATION = LIABILITIES DEET OWID TO OTHERS Put the following ending balances into the balance sheet and income statement. Note, Net Income will be used twicel Then use this information to answer the Extra Credit Quiz on CANVAS. OPERATING EXPENSES $3,000, DIVIDENDS $7,000, INVENTORY $20,000, ACCOUNTS RECEIVABLE $1,000, PREFERRED STOCK $15,000, SALES/REVENUES $25,000, BUILDINGS/EQUIPMENT $12,000, COMMON STOCK $20,000, ACCOUNTS PAYABLL $5,000, WAGES PAYABLE $2,500, COST OF GOODS 50LD$8,000, NET GAIN/LOSS \$O, LONG-TERM NOTES PAYABLE $15,000, CASH $35,000, BEGINNING RETAINED EARNINGS $3,500 When the company purchases goods on account, the following occurs: Inventory \& Accounts Payable both increase CGS (Cost of Goods Sold) increases \& Accounts Payable decrease CGS (Cost of Goods Sold) increases \& Cash decrease Inventory \& Cash both increase When the company sells goods on account, the following occurs: Sales \& Accounts Receivable both increase Sales increase \& Accounts Receivable decrease Sales decrease \& Cash increases Sales \& Cash both increase