The following items are taken from the financial statements of Tracy Company for 2010:
Accounts Payable $ 15,000
Accounts Receivable 11,000
Accumulated Depreciation-Video Equipment 28,000
Advertising Expense 21,000
Cash 24,000
Common Stock 90,000
Depreciation Expense 12,000
Dividends 15,000
Insurance Expense 3,000
Note Payable (due 2013) 70,000
Prepaid Insurance 6,000
Rent Expense 17,000
Retained Earnings (beginning) 12,000
Salaries Expense 34,000
Salaries Payable 3,000
Service Revenue 145,000
Supplies 4,000
Supplies Expense 6,000
Video Equipment 210,000
Instructions
(a) Calculate the net income.
(b) Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2010.