The following information is available from the records of prestigeLandscape Design Inc. at the end of the 2008 calendar year.
accounts payable $5,000
accounts receivable 4,500
capitalstock 8,000
cash 13,000
dividends paid during the year 3,000
landscapingrevenues $25,000
officeequipment 7,500
rentexpense 6,500
retained earnings,beginning of year 8,500
salary and wageexpense 12,000
Required:
Use the previous information to answer the following questions.
1. What is Prestige's net income for the year ended December31,2008?
2. What is Prestige's retained income earning balance at the end ofthe year?
3. What is the total amount of Prestige's assets at the end of theyear?
4. What is the total amount of Prestige's liabilities at the end ofthe year?
5. How much owners' equity does Prestige have at the end of theyear?
6. What is Prestige's accounting equation at December 31,2008?