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**Please prepare a balance sheet as of December 31,2011 and an income statement

ID: 2346496 • Letter: #

Question

**Please prepare a balance sheet as of December 31,2011 and an income statement for the year ending
December 31, 2011 for the Coronado manufacturing company. Please also calculate the balance in the Retained earnings account as of December 31, 2011. (The company paid no dividends during 2011)

Account balances as of December 31,2011

Operating expenses $220,000
Interest expense $40,000
Cost of Goods sold $500,000
Net Sales $800,000
Taxes $20,000
Accounts receivable $100,000
Machinery & equipment $700,000
Accumulated Depreciation $236,000
Notes payable (ST) $100,000
Inventory $90,000
Accounts payable $90,000
Long-term debt $160,000
Common stock $300,000
Cash $46,000
Retained earnings 12/31/10 ??
Retained earnings 12/31/11??

Explanation / Answer

Hi, If you like my answer rate me first...that way only I can earn points. Thanks Income Statement Net Sales $800,000 Cost of Goods sold $500,000 Operating expenses $220,000 Interest expense $40,000 Taxes $20,000 Net income = $20000 B/L Assets Accounts receivable $100,000 Machinery & equipment $700,000 Accumulated Depreciation $236,000 Inventory $90,000 Cash $46,000 Total Assets = $1172000 Liabilities Notes payable (ST) $100,000 Accounts payable $90,000 Long-term debt $160,000 Total = $350000 Equity Beginning retained earnings = $1172000 - $350000 - $20000 - $300000 = $502000 Common stock $300,000 Net income = $20000 Total = $822000 Ending Retained Earnings= $502000 + $20000 = $522000