on december 31 2011 the end of its first year of operations minute print company had 3387163

On December 31, 2011 (the end of its first year of operations), Minute Print Company had the following account balances: Bank loan (due in three years)………………………………….. $ 40,000 Wages expense………………………………………………….. 93,000 Materials and supplies on hand…………………………………. 68,000 Dividends payable………………………………………………. 1,500 Sales…………………………………..…………………………. 486,000 Cash……………………………………………………………… 24,000 Materials and supplies used……………………………………… 214,500 Wages payable…………………………………………………… 4,500 Prepaid rent……………………………………………………… 2,000 Interest paid on loan…………………………………………….. 2,500 Rent expense—equipment………………………………………. 100,000 Dividends declared……………………………………………… 3,000 Accounts payable………………………………………………… 8,000 Share capital…………………………………..…………………. 30,000 Rent expense—premises………………………………………… 24,000 Accounts receivable……………………………………………… 30,000 Other expenses…………………………………………………… 9,000 Retained earnings………………………………………………… ? Required: a. Identify the accounts that would appear on the statement of earnings, and use them to calculate the net earnings for the year. b. Find the amount of retained earnings at December 31, 2011, by subtracting the dividends declared from the net earnings you calculated in part “a.” c. Prepare a classified statement of financial position for December 31, 2011. Use the retained earnings amount calculated in part “b.”

 

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