Question

MATTHEWS LANES Work Sheet For Year Ended June 30
Account	Income Statement		Balance Sheet
	Dr	Cr	Dr	Cr
Cash			11,275
Accounts receivable			1,750
Office supplies			800
Prepaid insurance			3,400
Scoring equipment			140,000
Accumulated depreciation –      scoring equipment				21,700
Salaries payable				800
Common stock				20,000
Retained earnings (unadjusted)				40,000
Dividends			46,425
Bowling revenue		138,075
Depreciation expense –      scoring equipment	10,825
Salaries expense	1,800
Insurance expense	1,200
Rent expense	1,600
Office supplies expense	400
Repairs expense	350
Telephone expense	750
Totals	16,925	138,075	203,650	82,500
Net income	121,150			121,150
Totals	138,075	138,075	203,650	203,650

1.    Net Income:

2.    Ending Balance Retained Earnings:

3.    Total Assets or Total Liabilities and Owners’ Equity:

Answer 1

Solution 1:

Net Income = $121,150

Solution 2:

Ending balance retained earnings = Unadjusted balance of retained earnings + Net Income - Dividends

= $40,000 + $121,150 - $46,425 = $114,725

Solution 3:

Total Assets = Cash + Accounts receivables + Office supplies + Prepaid insurance + Scoring equipment - Accumulated depreciation - Scoring equipment

= $11,275 + $1,750 + $800 + $3,400 + $140,000 - $21,700 = $135,525

Total liabilities and owner's equity = Salaries payable + common stock + retained earnings

= $800 + $20,000 + $114,725 = $135,525