Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Whisper Company started 20X1 with $18,000 of cash, no liabilities, $10,000 of contributed capita and $8,000 of retained earnings. During the twelve months ended, 12/31/20X1
Whisper Company started 20X1 with $18,000 of cash, no liabilities, $10,000 of contributed capita and $8,000 of retained earnings. During the twelve months ended, 12/31/20X1 Whisper had the following 6 events. 1 Whisper issued $20,000 of common stock to its stockholders for cash. 2 Whisper purchased equipment for $4,000 cash. 3 Whisper provided services to customers in the amount of $45.000 ($20,000 of the sales were for cash and $25,000 were on account). 4 Whisper incurred $28,000 of operating expense, paid $18,000 in cash & owes $10,000. 5 Whisper collected $8,000 of cash from customers for future services 6 Whisper declared and paid a $12,000 dividend. Ignoring depreciation, what value will Whisper report as Retained Earnings on its 12/31/20X1 balance sheet? $13,000 $43,000 None of the answer choices provided are correct. $17,000 $61,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started