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Question

D Chapter 1 Hv × D https://utsat × D MS1023CY1. x DMS1023CY1 x)(Dhttpri utsal xnHuisACol ?.com/hm.tpx o Questions 21-23 (of 23) Reporting Amounts on the Four Basic Financial Statements and Evaluating Financia /The following information applies to the questions displayed below) Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015. Accounts Payable Accounts Receivable Cash (balance on September 1, 2014) Cash (balance on August 31, 2015) Common Stock Dividends Equipment Notes Payable Office Expenses Prepaid Rent Retained Earnings (beginning) Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Supplies Utilities Expense $ 162,000 32,000 92,000 110,000 100,000 5,000 772,000 47000 180,000 77000 427000 1,040,000 187000 1967000 49,000 615,000 Other cash flow information: Additional investments by stockholders Cash paid to purchase equipment Cash paid to suppliers and employees Repayments of borrowings Cash received from customers Cash recelved from borrowings Dividends paid in cash $51000 61000 1.540,000 172.000 1,746,000 9,000 15,000 References Section Break Reporting Amounts on the Four Basic

Explanation / Answer

a.) Income statement

Sales revenue = 1967000

less: expenses :

Office expense 180000

salaries and wages expense 1040000

utilities expense 615000 = 1835000

Net income = 132000

b.)    Statement of retained earnings

Beginning balance of retained earnings = 427000

Add: net income = 132000

less: dividend = (15000)

Ending balance of retained earnings = 544000

c.) Balance sheet

Assets

cash 110000

Accounts receivable 32000

Supplies 49000

Prepaid rent 77000

Equipment 772000

Total assets 1040000

Total liabilities and shareholder's equity

Accounts payable 162000

Notes payable 47000

Salaries and wages payable 187000    396000

shareholder's equity

Common stock 100000

Retained earnings   544000    644000

Total liabilities and shareholder's equity 1040000