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  • Solution: - Income Statement

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    Leon Chiang
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    The document contains 3 financial statements for a landscaping company: 1) An income statement showing revenues of $25,000 and expenses of $18,500, resulting in net income of $6,500. 2) A retained earnings statement showing an increase in retained earnings of $6,500 from net income, less $3,000 in dividends, equaling $8,500 in retained earnings. 3) A statement of financial position listing assets of $25,000 equal to the sum of equity (share capital of $8,000 and retained earnings of $12,000) and liabilities (accounts payable of $5,000).

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    The document contains 3 financial statements for a landscaping company: 1) An income statement showing revenues of $25,000 and expenses of $18,500, resulting in net income of $6,500. 2) A retained earnings statement showing an increase in retained earnings of $6,500 from net income, less $3,000 in dividends, equaling $8,500 in retained earnings. 3) A statement of financial position listing assets of $25,000 equal to the sum of equity (share capital of $8,000 and retained earnings of $12,000) and liabilities (accounts payable of $5,000).

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    © All Rights Reserved
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    5 views3 pages

    Solution: - Income Statement

    Uploaded by

    Leon Chiang
    The document contains 3 financial statements for a landscaping company: 1) An income statement showing revenues of $25,000 and expenses of $18,500, resulting in net income of $6,500. 2) A retained earnings statement showing an increase in retained earnings of $6,500 from net income, less $3,000 in dividends, equaling $8,500 in retained earnings. 3) A statement of financial position listing assets of $25,000 equal to the sum of equity (share capital of $8,000 and retained earnings of $12,000) and liabilities (accounts payable of $5,000).

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Solution

    Income Statement
    Revenues
    Landscaping Revenues

    25,000

    Expenses
    Rent Expense
    Expense
    12,000
    Total Expense
    Net Income

    6,500
    18,500

    Salary
    6,500

    Solution
    2

    Retained Earnings Statement


    Retained Earnings, Jan 1st, 2013
    + Net Income

    6,500

    - Dividends

    3,000

    Retained Earnings, Dec 31 , 2013


    st

    8,500

    12,000

    Solution
    3

    Statement of Financial Position


    Assets

    Equity and Liabilities

    Office Equipment

    7,500

    Share Capital

    Accounts Receivable

    4,000

    Supplies

    Accounts Payable

    500

    8,000

    Retained Earnings

    12,000

    5,000

    Cash

    13,000

    Total Assets

    25,000 Total Equity and Liabilities 25,000

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