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eerevenueInMortgage payableSupplies expenseRent expenseSalaries and wages expenseInstructionsClassify each of the above accounts as an asset (A), liability (L), stockholders' equityrevenue (R), or expense (E) item.E1-4 This information relates to Benser Co. for the year 2017SE)Retained earnings, January 1, 2017$67,000Advertising expenseDividendsRent expenseService revenueUtilities expenseSalaries and wages expensePrepare income statemretained earnings stateLO 3), AP1,8006,00010,40058,0002,40030,000InstructionsAfter analyzing the data, prepare an income statement and a retained earnings statementfor the year ending December 31, 2017information was taken from the 2017 financial statements of Prepare income statpharmaceutical giant Merck and Co. (All dollar amounts are in millions.)retained earnings stLO 3),APRetained earnings, January 1, 2017Cost of goods soldSelling and administrative expensesDividendsSales revenueResearch and development expenseIncome tax expense$43,698.89,018.98,543.23,597.738,576.05,845.02,267.6Instructions(a) After analyzing the data, prepare an income statement and a retained earnings state-ment for the year ending December 31, 2017Suppose that Merck decided to reduce its research and development expense by 50%.What would be the short-term implications? What would be the long-term implica-tions? How do you think the stock market would react?(b)a retainE1-6 Presented here is information for Zheng Inc. for 2017.Retained earnings, January 1Service revenueTotal expensesDividends$130,000400,000175,00065,000(LO 3), APInstructionsPrepare the 2017 retained earnings statement for Zheng Inc.E1-7 Consider each of the following independent situations.(a) The retained earnings statement of Lee Corporation shows dividends of $68,000,Interpret fina(L0 3),APwhile net income for the year was $75,000.ating activities was $10,000, cash used in investing activities was $110,000, and cashprovided by financing activities was $130,000.(b) The statement of cash flows for Steele Corporation shows that cash provided by oper-

Question

I don’t understand E1-6 please help.

ee
revenue
In
Mortgage payable
Supplies expense
Rent expense
Salaries and wages expense
Instructions
Classify each of the above accounts as an asset (A), liability (L), stockholders' equity
revenue (R), or expense (E) item.
E1-4 This information relates to Benser Co. for the year 2017
SE)
Retained earnings, January 1, 2017$67,000
Advertising expense
Dividends
Rent expense
Service revenue
Utilities expense
Salaries and wages expense
Prepare income statem
retained earnings state
LO 3), AP
1,800
6,000
10,400
58,000
2,400
30,000
Instructions
After analyzing the data, prepare an income statement and a retained earnings statement
for the year ending December 31, 2017
information was taken from the 2017 financial statements of Prepare income stat
pharmaceutical giant Merck and Co. (All dollar amounts are in millions.)
retained earnings st
LO 3),AP
Retained earnings, January 1, 2017
Cost of goods sold
Selling and administrative expenses
Dividends
Sales revenue
Research and development expense
Income tax expense
$43,698.8
9,018.9
8,543.2
3,597.7
38,576.0
5,845.0
2,267.6
Instructions
(a) After analyzing the data, prepare an income statement and a retained earnings state-
ment for the year ending December 31, 2017
Suppose that Merck decided to reduce its research and development expense by 50%.
What would be the short-term implications? What would be the long-term implica-
tions? How do you think the stock market would react?
(b)
a retain
E1-6 Presented here is information for Zheng Inc. for 2017.
Retained earnings, January 1
Service revenue
Total expenses
Dividends
$130,000
400,000
175,000
65,000
(LO 3), AP
Instructions
Prepare the 2017 retained earnings statement for Zheng Inc.
E1-7 Consider each of the following independent situations.
(a) The retained earnings statement of Lee Corporation shows dividends of $68,000,
Interpret fina
(L0 3),AP
while net income for the year was $75,000.
ating activities was $10,000, cash used in investing activities was $110,000, and cash
provided by financing activities was $130,000.
(b) The statement of cash flows for Steele Corporation shows that cash provided by oper-
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ee revenue In Mortgage payable Supplies expense Rent expense Salaries and wages expense Instructions Classify each of the above accounts as an asset (A), liability (L), stockholders' equity revenue (R), or expense (E) item. E1-4 This information relates to Benser Co. for the year 2017 SE) Retained earnings, January 1, 2017$67,000 Advertising expense Dividends Rent expense Service revenue Utilities expense Salaries and wages expense Prepare income statem retained earnings state LO 3), AP 1,800 6,000 10,400 58,000 2,400 30,000 Instructions After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31, 2017 information was taken from the 2017 financial statements of Prepare income stat pharmaceutical giant Merck and Co. (All dollar amounts are in millions.) retained earnings st LO 3),AP Retained earnings, January 1, 2017 Cost of goods sold Selling and administrative expenses Dividends Sales revenue Research and development expense Income tax expense $43,698.8 9,018.9 8,543.2 3,597.7 38,576.0 5,845.0 2,267.6 Instructions (a) After analyzing the data, prepare an income statement and a retained earnings state- ment for the year ending December 31, 2017 Suppose that Merck decided to reduce its research and development expense by 50%. What would be the short-term implications? What would be the long-term implica- tions? How do you think the stock market would react? (b) a retain E1-6 Presented here is information for Zheng Inc. for 2017. Retained earnings, January 1 Service revenue Total expenses Dividends $130,000 400,000 175,000 65,000 (LO 3), AP Instructions Prepare the 2017 retained earnings statement for Zheng Inc. E1-7 Consider each of the following independent situations. (a) The retained earnings statement of Lee Corporation shows dividends of $68,000, Interpret fina (L0 3),AP while net income for the year was $75,000. ating activities was $10,000, cash used in investing activities was $110,000, and cash provided by financing activities was $130,000. (b) The statement of cash flows for Steele Corporation shows that cash provided by oper-

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check_circleAnswer
Step 1

The First step is to compute the net income earned during the year by deducting the total expenses incurred during the year from the total service revenues generated during the year.

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Step 2

The next step is to prepare the statement of retained earnings by adding the net income eanred during the year (as computed above) in the begining balan...

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