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The following is a list of all accounts and balances (in $), as reported on the financial statements, of Sere Nere Corporation for the year
The following is a list of all accounts and balances (in $), as reported on the financial statements, of Sere Nere Corporation for the year ended December 31, 20X2. Accounts are listed in alphabetical order. The balances for Income Tax Expense and Retained Earnings must be calculated. . . . . . . Accounts Payable, $15,000 Accounts Receivable, $25,000 Accumulated Depreciation - Equipment, $80,000 Advertising Expense, $31,000 Cash, $75,000 Common Stock (issued at par value). $45,000 Depreciation Expense, $40,000 Equipment, $200,000 Income Tax Expense, ?????? Interest Revenue, $3,000 Land, $250,000 Miscellaneous Operating Expense, $87,000 Notes Receivable (70% Short-Term). $70,000 Prepaid Rent, $33,000 Rent Expense, $55,000 Retained Earnings, ?????? Service Revenue, $342,000 Supplies, $7,000 Supplies Expense, $12,000 Unearned Revenue, $22,000 . . . . . . . . . Additionally: On January 1, 20X2, the balance of the Retained Earnings account was $448,000. The company DECLARED AND PAID cash dividends of $40,000 during the year. The company is subject to an average tax rate of 25%. Using the information above, respond to the following questions. Label your answers. SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER A) Calculate the entity's net income or net loss for the period. (10 points) A) Calculate the entity's net income or net loss for the period. (10 points) B) List all accounts that would appear in the current asset section of the balance sheet AND provide the amount (in $) of total current assets. (4 points) C) List all accounts that would appear in the long-term/fixed asset section of the balance sheet AND provide the amount (in $) of total long-term/fixed assets. (4 points) D) List all accounts that would appear in the current liabilities section of the balance sheet AND provide the amount (in $) of total current liabilities. (4 points) E) List all accounts that would appear in the long-term liabilities section of the balance sheet AND provide the amount (in $) of total long-term liabilities. (4 points) F) List all accounts that would appear in the equity section of the balance sheet AND provide the amount (in $) of total equity. (3 points)
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