Question 2 Total 25 Marks (a) Pinson Company began the year with retained earnings of $570,000. During the year, the company recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000. What was Pinson's retained earnings at the end of the year? (5 Marks) (b) How are each of the following financial statements interrelated? (a) Retained earnings statement and income statement. (b) Retained earnings statement and balance sheet. (c) Balance sheet and statement of cash flows. (6 Marks) (c) Panda Corporation has assets of $3,000,000, common stock of $780,000, and retained earnings of $475,000. What are the creditors' claims on their assets? (5 Marks) (d) For 2020, ABC Corporation reported net income of $28,000; net sales $400,000; and average share outstanding 16,000. There were no preferred dividends. What was the 2020 earnings per share? (4 Marks) (e) Which of the following journal entries regarding payments is recorded correctly? 1,500 550 950 1. DR Cash CR Salaries and Wages Expense CR Advertising Expense 2. DR Salaries and Wages Expense DR Advertising Expense CR Cash 550 950 1,500 (5 Marks) Question 2 Total 25 Marks (a) Pinson Company began the year with retained earnings of $570,000. During the year, the company recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000. What was Pinson's retained earnings at the end of the year? (5 Marks) (b) How are each of the following financial statements interrelated? (a) Retained earnings statement and income statement. (b) Retained earnings statement and balance sheet. (c) Balance sheet and statement of cash flows. (6 Marks) (c) Panda Corporation has assets of $3,000,000, common stock of $780,000, and retained earnings of $475,000. What are the creditors' claims on their assets? (5 Marks) (d) For 2020, ABC Corporation reported net income of $28,000; net sales $400,000; and average share outstanding 16,000. There were no preferred dividends. What was the 2020 earnings per share? (4 Marks) (e) Which of the following journal entries regarding payments is recorded correctly? 1,500 550 950 1. DR Cash CR Salaries and Wages Expense CR Advertising Expense 2. DR Salaries and Wages Expense DR Advertising Expense CR Cash 550 950 1,500