The following items are taken from the financial statements of Grove Company for
ID: 2434414 • Letter: T
Question
The following items are taken from the financial statements of Grove Company for 2010:Accounts Payable $ 18,500
Accounts Receivable 4,000
Accumulated Depreciation 4,800
Bonds Payable 18,000
Cash 24,000
Common Stock 25,000
Cost of Goods Sold 13,000
Depreciation Expense 4,800
Dividends 5,300
Equipment 48,000
Interest Expense 2,500
Patents 7,500
Retained Earnings, January 1 16,000
Salaries Expense 5,200
Sales Revenue 36,500
Supplies 4,500
Instructions
Prepare an income statement and a retained earnings statement for Grove Company.
The following items are taken from the financial statements of Grove Company for 2010:
Accounts Payable $ 18,500
Accounts Receivable 4,000
Accumulated Depreciation 4,800
Bonds Payable 18,000
Cash 24,000
Common Stock 25,000
Cost of Goods Sold 13,000
Depreciation Expense 4,800
Dividends 5,300
Equipment 48,000
Interest Expense 2,500
Patents 7,500
Retained Earnings, January 1 16,000
Salaries Expense 5,200
Sales Revenue 36,500
Supplies 4,500
Instructions
Prepare an income statement and a retained earnings statement for Grove Company.
Explanation / Answer
Sales Revenue 36,500 Cost of Goods Sold 13,000 Gross Margin 23,500 Operating Expenses Salaries Expense 5,200 Depreciation Expense 4,800 Interest Expense 2,500 Total Operating Expense 12,500 Net Income 11,000 Retained Earnings Jan 1 16,000 Add: Net Income 11,000 Less: Dividends 5,300 Retained Earnings Dec 31 21,700
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