Question

The CFO of Green Dating Service, Inc. has just collected the following data for December 31, 2018. Write a balance sheet and an income statement. Accounts Receivable 250,000 Accounts Payable 260,000 Capital Surplus 100,000 Cash 190,000 Common Stock 300,000 Costs 640,000 Depreciation Expense 40,000 Dividends 97,500 Net Furniture & Fixtures 200,000 Goodwill 180,000 Interest Expense 50,000 Inventory 175,000 Land 305,000 Line of Credit (used) 200,000 Long Term Loan 340,000 Retained Earnings ? Sales 980,000 Tax rate 21%

Answer 1

Retained Earnings: $ 100.000

Step-by-step explanation:

Assets

Cash $190.000

Accounts Receivable $250.000

Net Furniture & Fixtures $200.000

Goodwill $180.000

Inventory 175.000

Land 305.000

TOTAL 1.300.000

Liabilities

Accounts Payable 260.000

Long Term Loan 340.000

Short Term Loan 200.000

Equity

Capital Surplus 100.000

Common Stock 300.000

Retained Earnings 100.000

TOTAL 1.300.000

INCOME STATEMENT

Sales 980.000

Costs -640.000

Depreciation Expense -40.000

Interest Expense -50.000

Earnings Before Taxes 250.000

Tax RATE -52.500

Net Income 197.500

Dividends : $ 97.500

Retained Earnings : $ 100.000