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    Don Lane Lawn Service at December 31, 2003: Supplies used during the year (and more)

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    Presented below is a balance sheet for the Don Lane Lawn Service at December 31, 2003.
    Balance Sheet
    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.

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    Solution Summary

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