PROBLEM 3

During 2012, the following events occurred for Wilmont Company:

performed services for which generated sales revenues of $286,000. Of this amount, $270,000 had been collected by year end.

incurred $130,000 of cost for employee wages

incurred interest expense of $1,700

incurred $80,000 for service expenses

incurred $18,575 of income tax expense

declared and paid cash dividends of $6,000

Prepare an income statement for Wilmont for the year.

At the start of 2012, Wilmont reported retained earnings totaling $940,000. Prepare a statement of retained earnings.

What was the balance that customers owed Wilmont at the end of 2012 (balance of Accounts Receivable)?