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INSTRUCTOR McGraw Hill/Irwin Step-by-Step Problem

Note: Follow the Step-by-Step instructions in the Guide to Individual Problems to work this problem. WILLAMETTE CONSULTING Income Statement For the Month Ended June 30, 20xx Revenues: Ticket revenue Concession revenue Total revenue Expenses: Equipment rent expense Film rent expense Advertising expense Salaries expense Utilities expense Total expense Net Income:

$160,000 29,600 189,600 $50,000 53,400 18,600 40,000 14,100 176,100 $13,500

WILLAMETTE CONSULTING Statement of Retained Earnings For the Month Ended June 30, 20xx Retained earnings, June 1 Add: Net income for June Total Less: Dividends Retained earnings, June 30 $84,900 13,500 $98,400 12,000 $86,400
Correct!

WILLAMETTE CONSULTING Balance Sheet June 30, 20xx Assets Cash Land Total assets Liabilities & Stockholders' Equity Liabilities Accounts payable Stockholders' equity Capital stock $114,000 Retained earnings 86,400 Total Stockholders' equity $240,000 48,000 $288,000

$87,600

200,400

Total Liabilities & Stockholders' equity

$288,000