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    Balance Sheet - Video Concepts

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    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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    https://brainmass.com/business/financial-statements/balance-sheet-video-concepts-235752

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    Solution Summary

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

    $2.19

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