Net Income and Retained Earnings
The following information is available from the records of Prestige Landscape Design Inc. at the end of the year:
|
Accounts payable
|
$ 5,000
|
Landscaping revenues
|
$25,000
|
|
Accounts receivable
|
4,500
|
Office equipment
|
7,500
|
|
Capital stock
|
8,000
|
Rent expense
|
6,500
|
|
Cash
|
13,000
|
Retained earnings, beginning of year
|
8,500
|
|
Dividends paid during the year
|
3,000
|
Salary and wage expense
|
12,000
|
|
Required
|
|
|
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Use the previous information to answer the following questions.
1. What is Prestige's net income for the year?
2. What is Prestige's Retained Earnings balance at the end of the year?
3. What is the total amount of Prestige's assets at the end of the year?
4. What is the total amount of Prestige's liabilities at the end of the year?
5. How much owners' equity does Prestige have at the end of the year?
6. What is Prestige's accounting equation at the end of the year?