Why is balance in retained earinings so large

Assignment Help Accounting Basics

Reference no: EM13259476

The following info. was obtain from the record of Wilcox, Inc., asof Dec 31, 2006

Land..............$42500
Building..........197550
Salaries expense.......125350
Utilities expense.........5250
acct payable...........$38050
revenues................389950
supplies................72500
retained earning(1/1/06)....311000
Capital stock(2,000 share outstanding)....65000
acct receivable.....................90000
supplies expense.................110600
cash.....................................
note payable(long-term).....63800
rent expenses.................21200
Dividends in 2006.........95500
Other expenses............11250
Income taxes...............35000

Required:
1 Prepare an income statement for the year ended Dec 31 2006.
2 Prepare a classified balance sheet as of Dec 31 2006.
3 Interpertive Question: Why is the balance in Retained Eariningsso large as compared with the balance in Capital Stock?

Reference no: EM13259476

Questions Cloud

Question regarding the foreign subsidiary accounts : Which of the following foreign subsidiary accounts will have the same value on consolidated financials regardless of whether the statements are remeasured or translated?

What is the voltage increment that is represented by the lsb : A system is required that represents 0 to 100 volts in a 10 bit code. What is the voltage increment that is represented by the LSB of this code.

What is the location of an object : What is the location of an object for which the magnitude of the image distance is one-fourth the magnitude of the object distance

Find the modified duration of each bond : If market interest rates rise by 0.75%, find the percent change in the price of each bond. Express your answers as percentages rounded to two decimal places.

Why is balance in retained earinings so large : Prepare a classified balance sheet as of Dec 31 2006. Why is the balance in Retained Earinings so large as compared with the balance in Capital Stock?

How can hoolywood labor unions maintain or enhance : What issues might actors, other performers and writers in the entertainment industry have that other workers may not have?

Determining the spot and forward rates : Which of the following factors will affect the spread between spot and forward rates?

Determine norton current and source resistance : A particular signal source produces an output of 30 mV when loaded by a 100-k ohm resistor and 10 mV when loaded by a 10-k ohm resistor. calculate the thevenin voltage, Norton current, and source resistance.

Find the conversion premium in dollars and in percent : Xilinx, a company in the semiconductor industry, has a $1,000 convertible bond with a conversion ratio of 32.076 and a coupon of 3.125%. The bond is currently priced at $751. Xilinx stock trades at $19.25, and pays an annual dividend of $0.56.

User Account

All Pages