Net Income Net Income Working Capital Retained Earnings

(2017) (2018) (Dec. 31, 2018) (Dec. 31, 2018)

Salaries Payable
2017 873,600 -873,600
2018 780,000 780,000 780,000
Interest Receivable
2017 -259,200 259,200
2018 -213,000 -213,000 -213,000
Prepaid Insurance
2017 -384,000 384,000
2018 -307,800 -307,800 -307,800
Advances from customer
2017 470,400 -470,400
2018 561,000 561,000 561,000
Machinery
2017 -564,000 -564,000
28,200 56,400 84,600
2018 -522,000 -522,000
26,100 26,100
Over (Under) 165,000 -320,100 820,200 -155,100
1. B 2. C 3. D 4. A
 Retained Earnings Net Income Net Loss Net Loss
(2015) (2016) (2017) (2018)
Unadjusted Balances 580,000 310,000 -205,000 -165,500
Prepaid Expense
2015 8,500 -8,500
2016 6,200 -6,200
2017 7,400 -7,400
2018 9,500
Accrued Expense
2015 -5,400 5,400
2016 -7,300 7,300
2017 -8,700 8,700
2018 -9,000
Unearned Income
2015 -6,900 6,900
2016 -7,800 7,800
2017 -8,900 8,900
2018 -9,600
Accrued Income
2015 4,700 -4,700
2016 5,600 -5,600
2017 6,200 -6,200
2018 7,800
Machinery Expense (Apr. 30, 270,000
2015)
Unrecorded Depreciation -60,000 -90,000 -90,000 -30,000
Unrecorded Transpo Equipm't (Donation) 30,000
(Sept. 30, 2005)
Unrecorded Depreciation -20,000 -80,000
Inventory (Understatement)
2016 64,000 -64,000
2018 44,500
Inventory and Purchases
(Understatement)
2017 43,400 -43,400
-43,400 43,400
2018 32,600
-32,600
Adjusted Balances 790,900 279,800 -349,700 -228,300
Adjusted Retained Earnings (Dec. 790,900 1. C
31, 2015)
Net Income (2016) 279,800 2. C
Dividends Declared -140,000
Retained Earnings (Dec. 31, 2016) 930,700 3. C
Net loss (2017) -349,700 4. C
Dividends Declared -100,000
Retained Earnings (Dec. 31, 2017) 481,000 5. A
Net loss (2018) -228,300 6. B
Retained Earnigns (Dec. 31, 2018) 252,700 7. C