SUNDIAL Inc. Trial balance December 31 |
||
debit |
credit |
|
Cash ................................................. .............................. |
$ 16 |
|
Accounts Receivable ................................................ ............................... |
26 |
|
Equipment ................................................. .............................. |
191 |
|
Accounts Payable ................................................ ............................... |
$ 21 |
|
Capital Stock ................................................ ............................... |
106 |
|
Retained Earnings ................................................ ............................... |
56 |
|
Dividends ................................................. .............................. |
11th |
|
Service Revenue ................................................ ............................... |
189 |
|
Salaries Expense ................................................ ............................... |
86 |
|
Depreciation ................................................. .............................. |
26 |
|
Supplies Expense ................................................ ............................... |
16 |
____ |
$ 372 |
$ 372 |
Which accounts will appear on the balance sheet?
Please choose one:
a. None of the above
b. Net income of $ 60.
c. Retained earnings of $ 56.
D. Dividends of $ 11.
Ans.
Which accounts will appear on the balance sheet?
The correct ans is None of the above i.e. A
This is because:
B is incorrect because net income is $ 61 ( $ 189 - $ 86 - $ 26 - $ 16) and this will not appear in Balance Sheet
C is incorrect because Retained earnings of $ 106 is appear in Balancesheet and not of $ 56.
Retained Earnings at Beginning = $ 56
Add: Net Income .......................= $ 61
Less: Dividend..........................= ($11)
Retained Earnings at end.........= $ 106
D is incorrect because dividend of $ 11 is not appear in Balance Sheet. It is shown in statement of retained earnings.
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