accounting 2,3
Bayhawks22
Module2PracticeProblem3ModelSolution.docxModule 2 Practice Problem 3
Robson Corporation
Balance Sheet
As of December 31. 2020
Current Assets: Current Liabilities:
Cash $50,000 Accounts Payable $280,000
Accounts Receivable $253,000 Notes Payable $475,000
Inventory $373,000 Income Tax Payable $140,000
Prepaid Insurance Expense $17,000 Salaries Payable $48,000
Prepaid Rent Expense $15,000 Unearned Revenue $78,000
Accrued Legal Expenses $46,000
Total Current Assets $708,000 Total Current Liabilities $1,067,000
Non-Current Assets: Stockholder Equity:
Building $750,000 Common Stock $225,000
Land $300,000 Retained Earnings $656,000
Machinery $190,000
Total Non-Current Assets $1,240,000 Total Stockholders Equity $831,000
Total Assets $1,948,000 Total Liabilities & S/Equity $1,948,000
Robson Corporation
Income Statement
For the Year Ended December 31. 2020
Revenue:
Consulting Services Revenue $1,023,000
Total Revenue $1,023,000
Expenses:
Depreciation Expense $85,000
Income Tax Expense $75,000
Interest Expense $42,000
Rent Expense $97,000
Salaries Expense $184,000
Total Expenses $483,000
Net Income/(Net Loss) $540,000
To calculate ending retained earnings as reported on the balance sheet:
Beginning retained earnings $116,000
Plus: Net income $540,000
Minus: Net loss $0
Minus: Dividends $0
Ending retained earnings $656,000
