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Mahomes Co. reported the following data at the end of its first year of operations on December 31. Cash$15,000 Accounts receivable 16,000 Equipment 18,000 Land 61,000 Accounts payable 12,000 Common stock 60,000 Dividends 31,000 Net income 69,000
Problem (a) Prepare its year-end statement of retained earnings.
Problem (b) Prepare its year-end balance sheet, using retained earnings calculated in part a.
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