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Balance Sheet - Video Concepts

Please see attached
The financial statement columns of the work sheet for Video Concepts at
December 31, 2003 are as follows:

Video Concepts
Work Sheet
For the Year Ended December 31, 2003

Income Statement Balance Sheet

Accounts
Debit Credit Debit Credit
Cash 14,000
Accounts Receivable 11,000
Supplies 4,000
Prepaid Insurance 6,000
Video Equipment 210,000
Acc. Depreciation - Equipment 26,000
Accounts Payable 24,000
Note Payable 60,000
Salaries Payable 3,000
Common Stock 90,000
Retained Earnings 22,000
Dividends 15,000
Video Rental Revenue 138,000
Advertising Expense 21,000
Depreciation Expense 12,000
Insurance Expense 3,000
Rent Expense 17,000
Salaries Expense 44,000
Supplies Expense
6,000

Totals 103,000 138,000 260,000 225,000
Net Income
35,000
35,000
138,000 138,000 260,000 260,000

INSTRUCTIONS
a. Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2003. Show it below.
b. Prepare a classified balance sheet for Video Concepts at December 31, 2003 assuming the note payable is a long-term liability.

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Solution Summary

The solution explains how to determine the ending retained earnings amount and to prepare a classified balance sheet.

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