An adjusted trial balance for Success Limited at December 31, 2011 follows,
|
Investment in long-term notes
|
Debit
500,000
|
Credit
|
|
|
|
Non-current portion of long-term loan payable
|
|
700,000
|
|
Prepaid rent
|
30,000
|
|
|
Rent expense
|
180,000
|
|
|
Retained earnings, Ja mar). 1, 2011.
|
|
843,000
|
|
Sales revenue
|
|
1,820„000
|
|
Stationery supplies
|
5„000
|
|
|
Stationery expense
|
22,000
|
|
|
Unearned revenue
|
|
42,000
|
|
Wages expense
|
174,000
|
|
|
Wages payable
|
|
34,000
|
|
Accounts payable
|
|
$282,000
|
|
Accounts receivable
|
$200,000
|
|
|
Accumulated depreciation, December 31, 2011
|
|
90,000
|
|
Advertising expense
|
36,000
|
|
|
Cash
|
638,000
|
|
|
Common stock
|
|
200,000
|
|
Cost of goods sold
|
740,000
|
|
|
Current portion of long-term loan payable
|
|
50,000
|
|
Depreciation expense
|
26,000
|
|
|
Dividends
|
46,000
|
|
|
Equipment
|
|
|
|
Income tax expense
|
56,000
|
|
|
Interest expense
|
68,000
|
|
|
Interest payable
|
|
10,000
|
|
Inventory
|
110,000
|
|
|
Total
|
1,071M
|
|
Instruction:
(a) Calculate net income in. 2011,
(b) Calculate retained earnings balance at December 31, 2011
(c) Prepare a classified balance sheet in report form at December 31, 2011.