Answer:
TOTAL CURRENT ASSETS $38,600
TOTAL ASSETS $233,284
TOTAL CURRENT LIABILITIES $23,400
TOTAL LIABILITIES $69,400
TOTAL EQUITY $163.884
TOTAL EQUITY & LIABILITIES $233.284
Explanation:
It's necessary to start by preparing the balance sheets with the information available, as result we have a difference in the accounting equation of $0,586 because it's necessary to prepare the income statement to define how much of the income it's keep as retained earnings.
Balance Sheets.
Assets Dec 31
Cash $6,400
Accounts Receivable $24,500
Supplies $7,700
TOTAL CURRENT ASSETS $38,600
Property and Equipment $186,000
Accumulated Depreciaiton -$38,316
Land $47,000
TOTAL ASSETS $233,284
Accounts Payable $10,400
Interest Payable $13,000
TOTAL CURRENT LIABILITIES $23,400
Long Term Notes Payables $46,000
TOTAL LIABILITIES $69,400
Common Stock $25,298
<u>Retained Earnings ($138,000 + 0,586)=138,586</u>
TOTAL EQUITY $163,884
TOTAL EQUITY & LIABILITIES $233,284
Income Statement
Sales $121,000
Depreciation -$24,714
MARGEN BRUTO $96,286
Salaries expense -$65,660
Office supplies expense -$5,000
Other Income -$12,040
Income Statement $13,586
Dividends $13,000
Retained Earnings = $0,586
