Looking at the worksheet, I need to find the missing values for Net Loss and Retained Earnings, end.
Let me work through this step by step:
1) First, let's look at the Income Statement columns:
- Total debits (expenses): $39,600
- Total credits (revenue): $38,600
- Since expenses > revenue, there's a net loss of $1,000 ($39,600 - $38,600)
2) Now for Retained Earnings calculation:
- Beginning retained earnings: $3,600
- Less: Net loss: $1,000
- Less: Dividends: $700
- Ending retained earnings = $3,600 - $1,000 - $700 = $1,900
3) Let me verify the Balance Sheet totals:
- Assets (debits): Cash $18,500 + Accounts Receivable $9,000 + Equipment $45,000 - Accumulated Depreciation $15,000 = $57,500
- Liabilities & Equity (credits): Accounts Payable $9,700 + Unearned Revenue $1,200 + Notes Payable $12,000 + Salaries Payable $2,100 + Interest Payable $600 + Capital Stock $30,000 + Retained Earnings $1,900 = $57,500
The balance sheet balances! The numbers check out correctly.
Final Answer:
Net loss: $1,000
Retained earnings, end: $1,900
Parent Tip: Review the logic above to help your child master the concept of accounting worksheet.
