Q1 a)

At January 1, 2018, Bakers Company retained earnings balance was $200,000.

Assume that net income is $ 500,0000. Bakers Company declares and pay cash dividends of $ 125,000 and share dividends of 15,000.

Prepare retained earnings statement.

Q1 b)

given the following account information for Hyundai company, prepare a statement of financial position in report form for the company as of December 31, 2018. All accounts have normal balances.

Equipment 40,000

Interest Payable 600

Retained Earnings 234,680

Land 157,320

Inventory 102,000

Bonds Payable 78,000

Notes Payable (due in 6 months) 24,400

Share CapitalOrdinary 60,000

Accumulated Depreciation - Equip. 10,000

Prepaid Advertising 5,000

Buildings 80,400

Supplies 1,860

Taxes Payable 3,000

Salaries and Wages Payable 900

Accumulated Depr. - Buildings 15,000

Cash 40,000