Question Details

Calculate the retained earnings balance 



The financial statement columns of the worksheet for The Coffee Pot at December 31, 2011, are as follows:
THE COFFEE POT
Worksheet
For the Year Ended December 31, 2011
										     Statement of
	  Income Statement   	     Financial Position	
	Accounts	  Debit  	  Credit  	     Debit   	  Credit	
Cash			15,000
Accounts Receivable			7,000
Supplies			4,000
Prepaid Insurance			6,000
Equipment			209,000
Accumulated Depreciation—Equipment				29,000
Accounts Payable				19,000
Note Payable				70,000
Salaries Payable				3,000
Share Capital-Ordinary				50,000
Retained Earnings				62,000
Dividends			14,000
Revenue		123,000
Advertising Expense	21,000
Depreciation Expense	12,000
Insurance Expense	3,000
Rent Expense	17,000
Salaries Expense	42,000
Supplies Expense	    6,000						
	Totals	101,000	123,000	255,000	233,000
Net Income	  22,000						  22,000
	123,000	123,000	255,000	255,000

Instructions
(a)	Calculate the retained earnings balance that would appear on a balance sheet at December 31, 2011.
(b)	Prepare a classified statement of financial position for The Coffee Pot at December 31, 2011 assuming the note payable is a long-term liability.




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