1. General Electric's revenue for March is $75,000, but only $15,000 cash is collected. Expenses for March are $41,000, of which $28,000 is paid in cash. During March, additional capital stock is issued in exchange for $5,000 cash. Using the accrual basis of accounting, General Electric's income statement for March reports.
2. Apple's retained earnings at the beginning of the year were $52,000. Net income for the year is $51,000, and dividends declared during the year are $5,000. If stockholders equity at the end of the year is $198,000, what is the amount of capital stock at year-end?
3. Net income of Mustang Company was $60,000 before any year-end adjusting entries were made. The following adjustments are necessary: portion of fees collected in advance now earned, $3,400; interest accrued on a company savings account, $330; portion of insurance expiring, $500. Net income reported on the income statement for the current year should be what?