Question: At the end of the year Mary’s Sweater Shop, Inc. reported the following:
Cash $14,000, Accounts Payable $13,000, Inventory $16,000, Common Stock $10,000, Property Plant & Equipment $50,000, Accounts Receivable $18,000, Other Current Liabilities $15,000, $150,000 in revenues, $45,000 in sweater expenses (COGS), sales staff salaries of $20,000, office expenses of $30,000 and dividends of $15,000. Retained Earnings at the beginning of the year were $20,000.
Q1. Show a proper, detailed Income Statement at the end of the year.
Q2. Show a detailed Statement of Retained Earnings at the end of the year.
Q3. Show a detailed Balance Sheet as of the end of the year
Note in the blank space next to the item: a) which Financial Statement you would find the item on, and b) what part of the Statement.
Indicate for each of the following items whether it would appear on a balance sheet (BS) or an income statement (IS). If a balance sheet item, is it an asset (A), a liability (L), or an owners' equity item (OE)?
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Financial Statement
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Where on Statement
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Example
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Cash
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Balance Sheet
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Current Asset
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4.
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Bonds
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5.
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Salaries Expense
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6.
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Accounts Payable
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7.
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Common Stock
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8.
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Cost of Goods Sold
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9.
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Prepaid Insurance
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10.
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Dividends
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11.
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Revenue or Sales
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12.
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Accounts Receivable.
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13.
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Accumulated Depreciation
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