Question 2The following items were taken from the December 31, 20x4 financialstatements of Hoffer Inc.Salaries Expense$ 91,500Accounts receivable$86,500Share Capital40,000Insurance Expense10,800Accounts payable57,000Income Tax Expense22,700Accumulated Depreciation-Equip.Supplies23,20030,000122,800Note payable (due July 30, 103,60020x9)InventoryLand36,000Cash17,800AdvertisingExpense24,000Equipment60,000 24,000AdvertisingExpenseEquipment60,000Sales400,200Unearned Revenue52,600Cost of Goods Sold 143,000Depreciation Expense15,000MiscellaneousExpense35,700Interest Expense4,500The beginning retained earnings balance was $18,100. Dividends of$8,000 were declared and paid during the year.Required:a)Prepare a Statement of Income for the year ending December 31,20x4.b)Calculate Retained Earnings as at December 31, 20x4.

The income statement is prepared using trial balance and it tells about the profitability of the…

Salaries Expense $ 91,500 Accounts receivable $ 86,500 Share Capital 40,000 Insurance Expense 10,800 Accounts payable 57,000 Income Tax Expense 22,700 23,200 Accumulated Depreciation- Equip. Supplies 30,000

Salaries Expense $ 91,500 Accounts receivable $ 86,500 Share Capital 40,000 Insurance Expense 10,800 Accounts payable 57,000 Income Tax Expense 22,700 23,200 Accumulated Depreciation- Equip. Supplies 30,000

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 14DQ

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