Question

Accounting question 10 points to who ever gives the best answer?

After it's first month of operation, the following amounts were taken from the accounting records of Polaris Realty Inc, as of November 30,2011

capital stock-$25000

cash- $38000

Dividends- $10000

Interest expense- $2,000

Land- $42000

Misc Expense- $3000

Notes Payable $35000

Rent expense- $5000

Retained Earnings-0

Salaries expense-$65000

Sales Commissions-$120000

Utilities expense-$15000

Part 2

Prepare a retained earnings statement for the month ending november 30,2011

Retained earnings- $20,000

Part 3

Prepare a balance sheet as of november 30,2011 total assets, $80,000

I am having a hard time understanding this and need to know what am I suppose to be looking for. 10 points to the one with the best answer.

Answers

Prepare a retained earnings statement for the month ending november 30,2011

Retained Earnings = Beginning balance + net income - dividends.

20,000 = 0 + Net income - 10,000

Net income = 30,000

RETAINED EARNINGS STATEMENT

Beginning balance, November 1, 2011. . . . . . . .$ . . . 0

Net Income. . . . . . . . . . . . . . . . . . . . . . . . . ....30,000

Less:

Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . ...10,000

Retained Earnings, November 30, 2011. . . . . . .$20,000

Part 3

Prepare a balance sheet as of november 30,2011 total assets, $80,000

BALANCE SHEET

Current Assets

..Cash. . . . . . . . . . . . . . . . . . . .. . . . $38,000

Property, Plant, and Equipment

..Land. . . . . . . . . . . . . . . . . . . . . . . . .42,000

Total Assets. . . . . . . . . . . . . . . . . . . $80,000

By the way, if you need to know what the revenues were, you would add the net income to the total expenses. Should be 132,000

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