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The following balances relate to Company BCD as of June 30, 2026: Cash: $75,000 Accounts Receivable: $35,000 Inventory: $52,000 Equipment: $140,000 Accumulated Depreciation: $34,000 Accounts
The following balances relate to Company BCD as of June 30, 2026:
- Cash: $75,000
- Accounts Receivable: $35,000
- Inventory: $52,000
- Equipment: $140,000
- Accumulated Depreciation: $34,000
- Accounts Payable: $27,000
- Notes Payable: $55,000
- Common Stock: $110,000
- Retained Earnings: $65,000
- Sales Revenue: $230,000
- Cost of Goods Sold: $140,000
- Salaries Expense: $44,000
- Rent Expense: $22,000
- Utilities Expense: $12,000
- Insurance Expense: $8,000
- Dividends: $16,000
Requirements:
- Prepare the trial balance for Company BCD.
- Prepare the income statement for the quarter ended June 30, 2026.
- Prepare the statement of retained earnings for the quarter ended June 30, 2026.
- Prepare the balance sheet as of June 30, 2026.
- Identify any discrepancies and explain how they should be rectified.
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