Pope’s Garage had the following accounts and amounts in its financial statements
ID: 2779225 • Letter: P
Question
Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2013. Assume that all balance sheet items reflect account balances at December 31, 2013, and that all income statement items reflect activities that occurred during the year then ended.
If $19,500 of dividends had been declared and paid during the year, what was the January 1, 2013, balance of retained earnings?
Pope’s Garage had the following accounts and amounts in its financial statements on December 31, 2013. Assume that all balance sheet items reflect account balances at December 31, 2013, and that all income statement items reflect activities that occurred during the year then ended.
Explanation / Answer
Current Assets Accounts Receivable 30900 Cash 10500 Supplies 5100 Inventory 27900 Current assets 74400 Total Liabilities and Stakeholders Equity Retained Earnings 58800 Accounts Payable 20700 Common Stock 7000 Long Term Debt 37000 Total Liabilities and Stakeholders Equity 123500 Earnings From Operations Service Revenue 28500 Sales Revenue 171000 199500 Depreciation 11300 COGS 86000 Interest 3300 Income Tax 23800 124400 Revenue from Operations 75100