Question

A) For the following items, provide the missing number.

The answer is NOT 76936; I checked twice. Please explain the work.

Retained Earnings, 1/1/16	$ 575,603
Net Income	?
Subtotal	$ 498,667
Dividends	10,000
Retained Earnings, 1/1/16	$ 488,667

B) Specify the section of a classified balance sheet in which each of the following accounts would be found.

Machinery Merchandise Inventory Preferred Stock Copyrights Bonds Payable Accumulated Depreciation Additional Paid-In Capital Accounts Receivable Unearned Revenues Taxes Payable

1. Current Assets 2. Investments 3. Property, Plant, and Equipment 4. Intangibles 5. Current Liabilities 6. Long-Term Liabilities 7. Contributed Capital 8. Retained Earnings

Answer 1

A.

opening retained earning 1/1/2016.......................$488667

add: net income (balancing figure).....................96936

total.......................................585603

less dividend......................................................10000

closing retaining ................................................575603

Hence ,net income=$96936

B.

1. current assets

Merchandise Inventory

Accounts Receivable

2.investment

  no item found

3.Property, Plant, and Equipment

Machinery

less: accumulated depreciation *

4.Intangibles

Copyrights

5.Current Liabilities

  Taxes Payable

Unearned Revenues

6.Long-Term Liabilities

  Bonds Payable

7.Contributed Capital

Preferred Stock

Additional Paid-In Capital

8.Retained Earnings

no item found

*Note:The accumulated depreciation account is an asset account with a credit balance. this means that it appears on the balance sheet as a reduction from the gross amount of fixed assets reported.