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    balance sheet, income statement, retained earnings numbers

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    Andover Consulting, Inc. at March 31, 2012, during the year Lori Andover, the only stockholder, bought $10,200 in the business.

    1. Identify each as an asset, liability, revenue or expense.

    Office Furniture A
    Utilities Expense E
    A/P L
    N/P L
    Service Revenue R
    A/R A
    Supplies Expense E
    Rent Expense E
    Cash A
    Office Supplies A
    Salaries Expense E
    Salaries Payable L
    Property Tax Expense E
    Equipment A

    2. Prepare and Income Statement for the year ended March 31, 2012

    Andover Consulting, Inc.
    Income Statement
    For the year ending March 31, 2012

    Revenue:
    Service Revenue $155,000

    Expenses:
    Utilities 7600
    Supplies 3600
    Rent 25000
    Salaries 51000
    Property Tax 3000

    Total Expenses 90,200

    Net income (loss) 64800

    What is the result of operations for 2012?
    Net Income of 64800

    3. Assuming the balance in retained earnings on March 31, 2012 was $34,800 what was the amount of
    dividends during the year? Prepare a statement of retained earnings to solve for the dividends. The business has no beginning balance for retained earnings.

    Andover Consulting, Inc.
    Retained Earnings
    For the Year Ending March 31, 2012

    Retained earnings, March 31, 2012 24600
    Add: Net Income 64800
    89400
    Less: Dividends 54800 (?)
    Retained earnings, March 31, 2012 34600

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    https://brainmass.com/business/financial-statements/balance-sheet-income-statement-retained-earnings-numbers-521359

    Solution Preview

    Andover Consulting, Inc. at March 31, 2012, during the year Lori Andover, the only stockholder, bought $10,200 in the business.

    1. Identify each as an asset, liability, revenue or expense.

    Office Furniture A
    Utilities Expense E
    A/P L
    N/P L
    Service Revenue R
    A/R A
    Supplies Expense E
    Rent Expense E
    Cash A
    Office Supplies A
    Salaries Expense E
    Salaries Payable L
    Property Tax Expense E
    Equipment A THESE ARE ALL CORRECT.

    2. Prepare and Income ...

    Solution Summary

    This solution calculates the requested amounts based on the information given. All questions are answered.

    $2.19

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