Question

Use the following information for the year ended December 31, 2022. Prepaid insurance $900 Service revenue $20,000 Operating expenses 14,800 Cash 16,000 Accounts payable 10,800 Dividends 1,600 Accounts receivable 3,700 Notes payable 1,500 Common stock 9,000 Bonds payable 54,000 Retained earnings (beginning) 6,700 Equipment 65,000 Calculate the following: (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Net income / (net loss) =

Ending retained earnings =

Total liabilities=

Answer 1

a)Net income /(loss) =Revenue -operating expense

            = 20000-14800

            = 5200

b) Ending retained earnings =Beginning retained earning+ Net income-Dividend

                = 6700+ 5200 -1600

                = 10300

c)

Accounts payable	10800
Notes payable	1500
Bonds payable	54000
Total liabilities	66300