Use the following to answer questions 20 22 Determine ending

Use the following to answer questions 20- 22 Determine ending retained earnings for years 1,2 and 3. At the beginning of year 1, the retained earnings had a $0 balance. Year Net Income Dividends Retained Eanings 1 $135,400 $25,000 20. 2 185,200 3 21. 133,600 50,000 22. Question 20 0.37 pts

Solution

Answer 20-22. Retained Earning Statement Beginning Balance - Year 1                     -   Add: Net Income - Year 1    135,400.00 Less: Dividends - Year 1    (25,000.00) Ending Balance - Year 1 (20)    110,400.00 Add: Net Income - Year 2    185,200.00 Less: Dividends - Year 2    (30,000.00) Ending Balance - Year 2 (21)    265,600.00 Add: Net Income - Year 3    133,600.00 Less: Dividends - Year 3    (50,000.00) Ending Balance - Year 3 (22)    349,200.00 Answer 23-28. Income Statement Revenue Service Revenue    1,145,200.00 Expenses Paper Supplies Used        2,200.00 Food expenses    563,800.00 Salaries Expenses    342,700.00 Maintenance Expenses    125,000.00 Total Expenses    1,033,700.00 Net Income        111,500.00 Balance Sheet Assets Current Assets Paper Supplies            250.00 Cash      73,550.00          73,800.00 Plant, Property & Equipment Garrage / Office    298,950.00 Food Trucks    321,000.00        619,950.00 Total Assest        693,750.00 Liabilities & Stockholders\' Equity Liabilities Current Liabilities Accounts Payable      33,000.00 Salary Payable        4,250.00          37,250.00 Long Term Liabilities Note Payable        250,000.00 Total Liabilities        287,250.00 Stockholders\' Equity Common Stock    200,000.00 Retained Earnings    206,500.00 Total Stockholders\' Equity        406,500.00 Total Liabilities & Stockholders\' Equity        693,750.00 Retained Earning Statement Beginning Balance      95,000.00 Add: Net Income    111,500.00 Less: Dividend                     -   Ending Balance    206,500.00