Add: Net income 24,000
29,000
Less: Dividends.................................................................................................. 8,000
Retained earnings, December 31 $21,000
SLEEP CHEAP
Balance Sheet
December 31, 2022
______________________________________________________
Assets
Cash ................................................................................. $ 13,500
Supplies 2,500
Equipment................................................................................................. 108,000
Total assets $124,000
Solution 212 (Cont.)
Liabilities and Stockholders’ Equity
Liabilities
Notes payable $50,000
Accounts payable 13,000
Total liabilities................................................................................................... $ 63,000
Stockholders’ equity
Common stock .............................................................................. 40,000
Retained earnings.................................................................................................... 21,000 61,000
Total liabilities and stockholders’ equity .......................................................................... $124,000
Ex. 213
John Tate is the bookkeeper for Gabelli Company. John has been trying to get the balance sheet of Gabelli Company to balance. It finally balanced, but now he's not sure it is correct.
GABELLI COMPANY
Balance Sheet
December 31, 2022
Assets Liabilities and Stockholders' Equity
Cash $12,500 Accounts payable $18,000
Supplies 9,500 Accounts receivable (12,000)