Net Income (or Loss) and Retained EamingsThe following information is available from the records of Prestige Landscape Design Inc. at the end ofAccounts payable$5,000 Landscaping revenues$22,000Accounts receivable4,500Office equipment7,500Capital stock8,000Rent expense6,500Cash10,000Retained earnings, beginning of year8,500Dividends paid during the year3,000Salary and wage expense12,000Required:Use the above information to answer the following questions.1. What is Prestige's net income for the year?2. What is Prestige's Retained Earnings balance at the end of the year?3. What Is the total amount of Prestige's assets at the end of the year?4. What is the total amount of Prestige's liabilides at the end of the year?5. How much owners equity does Prestige's have at the end of the year?6. What is Prestige's accounting equation at the end of tHe year?AssetsLiabilitiesStockholders Equity%3D%3DCheck My WorkAll work saved.searchhp

Answered: Net Income (or Loss) and Retained…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.10E: Net Income (or Loss) and Retained Earnings The following information is available from the records...

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Net Income (or Loss) and Retained Eamings
The following information is available from the records of Prestige Landscape Design Inc. at the end of
Accounts payable
$5,000 Landscaping revenues
$22,000
Accounts receivable
4,500
Office equipment
7,500
Capital stock
8,000
Rent expense
6,500
Cash
10,000
Retained earnings, beginning of year
8,500
Dividends paid during the year
3,000
Salary and wage expense
12,000
Required:
Use the above information to answer the following questions.
1. What is Prestige's net income for the year?
2. What is Prestige's Retained Earnings balance at the end of the year?
3. What Is the total amount of Prestige's assets at the end of the year?
4. What is the total amount of Prestige's liabilides at the end of the year?
5. How much owners equity does Prestige's have at the end of the year?
6. What is Prestige's accounting equation at the end of tHe year?
Assets
Liabilities
Stockholders Equity
%3D
%3D
Check My Work
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Financial Statements are prepared by the management for reporting purposes. These are the essential books of records that include income statements, balance sheets, and cash flow statements. Financial statements are useful for the stakeholders of the firm as they can analyze the current situation that the firm is able to meet out their obligation or not.

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