Answer:
Patterson Company
Balance sheet as at December 31
Fixed Assets:
Equipment $50,800
Less: Accumulated Depreciation, Equipment $10,700
Buildings $119,000
Less: Accumulated Depreciation, Buildings $63,900
Total Fixed Assets $95,200
Current Assets:
Accounts Receivable $44,000
Prepaid Rent $14,700
Cash $39,900
Supplies $10,800
Total current Assets $109,400
Current Liabilities:
Accounts Payable $42,300
Salaries Payable $8,900
Total current liabilities $51,200
Total Net Assets = $153,400
Shareholders Equity:
Capital Stock $57,000
Retained earnings $96,400
Shareholders equity $153,400
Income statement.
Service Revenue 121,600
Supplies Expense 9,000
Gross Profit 112,600
Less expenses:
Depreciation Expense, Equipment 4,600
Depreciation Expense, Buildings 8,300
Rent Expense 11,000
Salaries Expense 6,100
Net income $82,600
Dividends $17,300
Transfer to retain earnings $65,300
Beginning Retained Earnings 31,100
Closing retained earnings $96,400
