Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet Assume that you are… 1 answer below »

Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet Assume that you are the president of Nuclear Company. At the end of the first year of operations (December 31, 2009), the following financial data for the company are available:

Cash

$12,000

Accounts Receivable

59,500

Supplies

8,000

Equipment

36,000

Accounts Payable

30,297

Notes Payable

1,470

Sales Revenue

88,000

Operating Expenses

57,200

Other Expenses

8,850

Contributed Capital

61,983

Dividends

200

1. Prepare an income statement for the year ended December 31, 2009. TIP: Begin by classifying each account as asset, liability, stockholders’ equity, revenue, or expense. Each account is reported on only one financial statement.

2. Prepare a statement of retained earnings for the year ended December 31, 2009. TIP: Because this is the first year of operations, the beginning balance in Retained Earnings will be zero.

3. Prepare a balance sheet at December 31, 2009. TIP: The balance sheet includes the ending balance from the statement of retained earnings.