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Equipment
$100,000
Accounts Receivable
12,000
Accounts Payable
9,000
Cost of Goods Sold
72,000
Utilities Expense
11,000
Depreciation Expense
17,000
Insurance Expense
Common Stock
200,000
Dividends
Rent Expense
3,000
Note Payable (due 2014)
40,000
Advertising Expense
14,000
Prepaid Insurance
Retained Earnings (beginning)
44,000
Accumulated Depreciation
50,000
Salaries Expense
60,000
Salaries Payable
3,500
Net sales
205,000
Supplies
4,000
Supplies Expense
5,000
Instructions
(a) Calculate the net income.(b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2012.(c) Calculate the gross profit percentage.
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