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    The balance sheet shows the assets and liabilities of Book Shop Inc. as of December 31, 2012. Total assets are $183,000, consisting mainly of cash, receivables, prepaid expenses, supplies, equipment, and land. Total liabilities are $84,000, consisting of accounts payable and bank loans. The income statement shows revenues of $100,000 and expenses of $65,000, resulting in net income of $35,000 for the year ended December 31, 2012. The statement of changes in shareholders' equity shows an increase in retained earnings from $30,000 to $59,000 after accounting for net income of $35,000 and dividends of $6,000.

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    Quiz 1 version 2MA

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    The balance sheet shows the assets and liabilities of Book Shop Inc. as of December 31, 2012. Total assets are $183,000, consisting mainly of cash, receivables, prepaid expenses, supplies, equipment, and land. Total liabilities are $84,000, consisting of accounts payable and bank loans. The income statement shows revenues of $100,000 and expenses of $65,000, resulting in net income of $35,000 for the year ended December 31, 2012. The statement of changes in shareholders' equity shows an increase in retained earnings from $30,000 to $59,000 after accounting for net income of $35,000 and dividends of $6,000.

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    3 views1 page

    Quiz 1 Version 2MA

    Uploaded by

    answer
    The balance sheet shows the assets and liabilities of Book Shop Inc. as of December 31, 2012. Total assets are $183,000, consisting mainly of cash, receivables, prepaid expenses, supplies, equipment, and land. Total liabilities are $84,000, consisting of accounts payable and bank loans. The income statement shows revenues of $100,000 and expenses of $65,000, resulting in net income of $35,000 for the year ended December 31, 2012. The statement of changes in shareholders' equity shows an increase in retained earnings from $30,000 to $59,000 after accounting for net income of $35,000 and dividends of $6,000.

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    © All Rights Reserved
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    of 1

    Book shop Inc

    Balance sheet as of December 31st, 2012

    Assets Liabilities
    Cash 34,000 Accounts payable 10000
    Notes Receivable 6,000 Bank loans 74,000
    Prepaid electricity 1000 Total liabilities 84,000
    Supplies 2000
    Equipment 40000 Total Shareholders’ equity
    Land 100000 Share capital 40000
    Ending Retained Earnings 59,000
    Total Shareholders’ equity 99000

    Total assets 183000 Total liabilities and shareholders equity 183,000

    Calculation for Net income

    Ending Retained Earnings=Beg Retained Earnings +Net income-Dividends

    59000=30,000+Net income-6000

    Net income=35,000

    Book shop Inc

    Income statement for the year ended Dec. 31 st, 2012

    Revenues 100,000
    Less Expenses
    Rent Expense 24000
    Interest expense 37,000
    Utility expense 1000
    Wages expense 3000
    Total expense (65000)
    Net income 35000

    Book shop Inc.


    Statement of changes in shareholders’ equity for the year ended 31 st of Dec, 2012

    Beginning Shareholders equity 70,000


    +Net income 35,000
    -Dividends (6000)
    Ending shareholders equity 99,000

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