Presented below is a balance sheet for the Don Lane Lawn Service at December 31, 2003.
DON LANE LAWN SERVICE
December 31, 2003
Assets Liabilities and Stockholders' Equity
Cash $12,000 Liabilities
Accounts receivable 7,000 Accounts payable $ 8,000
Supplies 9,000 Notes payable 15,000
Equipment 11,000 Stockholders' equity
Common stock 10,000
Retained earnings 6,000
Total assets $39,000 Total liabilities & stockholders' equity $39,000
The following additional data are available for the year which began on January 1, 2003: All expenses (excluding supplies expense) total $6,000. Supplies on January 1 were $10,000 and $3,000 of supplies were purchased during the year. Net income for the year was $7,000 and dividends were $5,000.
Determine the following: (Show all computations.)
1. Supplies used during the year.
2. Total expenses for the year.
3. Service revenue for the year.
4. Retained Earnings balance on January 1, 2003.
Solution to your posting is provided in a separate excel file as an attachment.