Review Problem 1 2010(1) - The equipment was purchased on July 1 2011 It has a four year life and a $100 salvage value • The company signed the $1,000

Review Problem For Exam 1 The following is a Post-Closing Trial Balance from December 31, 2011 : Cash $1,300 A/R 560 Inventory 700 Supplies 100 Equipment 500 Acc. Dep. $50 Note Payable 1,000 Interest Payable 60 Unearned Rev. 600 Common Stock 650 Retained Earnings ______ 800 $3,160 $3,160 The following occurred during 2012 : • Purchased $200 of supplies on account • Sold $200 of the inventory for $450 cash • Received $300 of the A/R; related to services • Earned one-fourth of the Unearned Revenue; related to service revenue • Paid $50 of the Account Payable • Provided $350 of services for cash • Paid a $140 dividend to the stockholders • On December 31, 2012 we had $140 of supplies remaining •

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Unformatted text preview: The equipment was purchased on July 1, 2011 . It has a four year life and a $100 salvage value • The company signed the $1,000 note payable on July 1, 2011 . It is a 2-year note with a 12% interest rate. Principal and interest will be paid in cash at maturity. REQUIRED : Prepare the 2012 Adjusted Trial Balance, Income Statement, Retained Earnings Statement, Balance Sheet, and Statement of Cash Flows. 1. What is net income ? 2. What is the ending cash balance ? 3. What are total assets ? 4. What are total liabilities ? 5. What is retained earnings ? 6. What is cash flow from operations ? 7. Prepare closing entries....
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