Exercise 1-24 (Algo) Linking the statement of retained earnings and balance sheet LO P2

Mahomes Company reported the following data at the end of its first year of operations on December 31.

Cash	$ 11,500
Accounts receivable	12,500
Equipment	14,500
Land	50,500
Accounts payable	8,500
Common stock	42,500
Dividends	27,500
Net income	65,500

(a) Prepare its year-end statement of retained earnings.

(b) Prepare its year-end balance sheet, using retained earnings calculated in part a.

• Required A
• Required B

Prepare its year-end balance sheet, using retained earnings calculated in part a.

MAHOMES COMPANY
Balance Sheet
December 31
Cash	$11,500	Consulting fees earned	$1
Accounts receivable	12,500
Telephone expense
			0
	$24,000		$1

• Required