76. Assume that Sallisaw Sideboards, Inc. had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions during April. Issued common stock for cash, $5,000. Provided services to customers on account, $2,000. Provided services to customers in exchange for cash, $900. Purchased equipment and paid cash, $4,300. Paid April rent, $800. Paid employees' salaries for April, $700. What was Sallisaw's retained earnings balance at the end of April? Beginning retained earnings $10,000 + Net income $1,400 - Dividends $0 = Ending retained earnings $11,400. Net Income = Revenue ($2,000 + $900) - Expenses ($800 + $700) = $1,400. AACSB: Analytical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Analyze Blooms: Understand Difficulty: 3 Hard Learning Objective: 02-02 Analyze the impact of external transactions on the accounting equation. Topic: Effects of Transactions on the Basic Accounting Equation
76. Assume that Sallisaw Sideboards, Inc. had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions during April. Issued common stock for cash, $5,000. Provided services to customers on account, $2,000. Provided services to customers in exchange for cash, $900. Purchased equipment and paid cash, $4,300. Paid April rent, $800. Paid employees' salaries for April, $700. What was Sallisaw's retained earnings balance at the end of April? Beginning retained earnings $10,000 + Net income $1,400 - Dividends $0 = Ending retained earnings $11,400. Net Income = Revenue ($2,000 + $900) - Expenses ($800 + $700) = $1,400. AACSB: Analytical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Analyze Blooms: Understand Difficulty: 3 Hard Learning Objective: 02-02 Analyze the impact of external transactions on the accounting equation. Topic: Effects of Transactions on the Basic Accounting Equation
Financial-Accounting-4th-Edition-SpicelandTBChap002-1.docx