c. BS i. BS
d. BS j. IS
e. BS k. RE
f. IS l. BS
Be. 193
Cesar Ruiz was reviewing his company’s activities at the end of the year (2022) and decided to prepare a retained earnings statement. At the beginning of the year, his assets were $530,000, liabilities were $140,000, and common stock was $120,000. The net income for the year was $250,000. Dividends of $220,000 were paid during the year.
Prepare a retained earnings statement in good form.
Ans: N/A, LO: 3, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution 193
CESAR RUIZ COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2022
Retained Earnings, Beginning $270,000*
Add: Net Income 250,000
520,000
Less: Dividends 220,000
Retained Earnings, Ending $300,000
*(Assets – liab. – com. stock)
Be. 194
From the following list of selected accounts taken from the records of Schmidt Clinic, identify those that would appear on the balance sheet.
a. Common Stock f. Accounts Payable
b. Service Revenue g. Cash