Question

Use the following information to calculate for the year ended December 31, 2018

(a) net income,
(b) ending retained earnings, and
(c) total assets.
Supplies $ 3,000
Revenues $25,000
Operating expenses 12,000
Cash 15,000
Accounts payable 9,000
Dividends 1,000
Accounts receivable 3,000
Notes payable 1,000
Beginning retained earnings 5,000
Equipment 6,000

Answer 1

a. $13,000

b. $17,000

c. $27,000

Step-by-step explanation:

a= Net income (loss) = Service revenue - Other operating expenses

Net income (loss) = $25,000 - $12,000

Net income (loss) = $13,000

b. Ending retained earnings = Beginning retained earnings + Net income - Dividends

Ending retained earnings = $5,000 + $13,000 - $1,000

Ending retained earnings = $17,000

c. Total assets = Cash + Accounts receivable + Supplies + Equipment

Total assets = $15,000 + $3,000 + $3,000 + $6,000

Total assets = $27,000