Task: Asset and Liability problems:
The information presented here represents selected data from the December 31, 2010, balance sheets and income statements for the year then ended for three firms.
Gary's TV had the following accounts and amounts in its financial statements on December 31, 2010. Assume that all balance sheet items reflect account balances at December 31, 2010, and that all income statement items reflect activities that occurred during the year then ended.
Interest expense $9,000
Paid-in capital 80,000
Accumulated depreciation 6,000
Notes payable (long-term) 280,000
Rent expense 16,000
Merchandise inventory 164,000
Accounts receivable 48,000
Depreciation expense 3,000
Land 35,000
Retained earnings 225,000
Cash 36,000
Cost of goods sold 394,000
Equipment 18,000
Income tax expense 60,000
Accounts payable 26,000
Sales revenue 620,000
(b) Calculate the total assets at December 31, 2010.
(c) Calculate the earnings from operations (operating income) for the year ended December 31, 2010.
(d) Calculate the net income (or loss) for the year ended December 31, 2010.
(d) Calculate the net income (or loss) for the year ended December 31, 2010.
(f) If $129,000 of dividends had been declared and paid during the year, what was the January 1, 2010, balance of retained earnings?