Exercise 1-8 Net Income (or Loss) and Retained Earnings LO 2 The following information is available from the records of Prestige Landscape Design Inc. at the end of the 2004 calendar year: Accounts payable $ 5,000 Accounts receivable Office equipment $ 7,500 4,000 Rent expense 6,500 Capital stock 8,000 Retained earnings, Cash 13,000 8,500 Dividends paid beginning of year Salary and wage expense 12,000 during the year 3,000 Supplies 500 Landscaping revenues 25,000 Required Use the information above to answer the following questions: 1. What is Prestige's net income for the year ended December 31, 2004? 2. What is Prestige's retained earnings balance at the end of the year? 3. What is the total amount of Prestige's assets at the end of the year? 4. What is the total amount of Prestige's liabilities at the end of the year? 5. How much owners' equity does Prestige have at the end of the year? 6. What is Prestige's accounting equation at December 31, 2004