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Financial Statements for Panaka Company

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I can't seem to get this to balance properly and I don't know what I'm leaving out. Please HELP! I don't have much instruction from my teacher and I feel like I'm teaching this stuff to myself. Although I'm catching on to it a little better, there are still some things that I get confused on. Thanks!

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Solution Summary

The solution explains the preparation of closing entries, the trial balance and the preparation of financial statements for Panaka Company

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(a) PANAKA COMPANY
Income Statement
For the Year Ended December 31, 2002

Revenues
Service revenue $44,000
Expenses
Salaries expense $36,000
Utilities expense   3,700
Repair expense   3,200
Depreciation expense   2,800
Insurance expense   1,200
Total expenses  46,900
Net loss $ (2,900 )

PANAKA COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2002

Retained Earnings, January 1 $14,000
Less: Net loss $2,900
Dividends  7,200  10,100
Retained Earnings, December 31 $ 3,900

PANAKA COMPANY
Balance Sheet
December 31, 2002

Assets
Current ...

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