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The Kobe Company was founded on January 1, 2017; since then, the company has been fairly successful; however, in an effort to save some money,
The Kobe Company was founded on January 1, 2017; since then, the company has been fairly successful; however, in an effort to save some money, the president has been keeping track of the financial records rather than hiring a professional accountant. Although some data is missing, a comparative report of year-end account balances appears below; all numbers are as of December 31'' unless noted otherwise. Dividends Retained earnings, Jan. 1 Revenues Notes payable Accounts payable Selling and administrative expenses Rent expense Common stock Payroll expense Cash Equipment Retained earnings, Dec. 31 Supplies Accounts receivable 2020 3,400 ? 465,806 ? 14,089 15,945 ? 40,500 358,416 14,342 64,513 22,192 1,210 18,612 2019 2,500 ? 421,619 18,700 12,765 15,392 92,713 38,000 305,246 16,489 57,937 22,267 890 ? Required: a. Prepare an income statement, statement of retained eamings and a balance sheet for each year and determine the missing values b. During January of 2021, the company had the following transactions: Jan. 1 Owner invested another $14,000 into the company Jan. 2 Purchased $8,100 of equipment Jan. 3 Paid $250 for advertising Jan. 6 Purchased $400 of supplies on account Jan. 10 Paid rent of $8,000 Jan. 14 Sold services to customers for $52,400 Jan. 18 Borrowed $4,500 from a bank Jan. 24 Pald employee payroll of $4,400 Jan. 26 Received a $300 utility bill for January, will be paid next month Jan. 31 A $680 dividend is paid to the owner Jan. 31 Paid employee payroll of $14,000 Prepare a tabular analysis for January, record the transactions and then prepare a statement of cash flows, income statement, statement of retained earnings and balance for the company
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