The following accounts are taken from the December 31, 2011 financial statements of a company.
Accounts payable
$2,075
Accounts receivable
800
Selling & administrative expenses
2,500
Cash
2,200
Contributed Capital
2,000
Dividends
1,900
Income tax expense
400
Interest expense
75
Other expenses
500
Notes payable
5,000
Other assets
2,500
Other liabilities
3,000
Other operating expenses
2,000
Other revenue
300
Property & equipment
11,000
Retained earnings as of 12/31/10
4,800
Salaries expense
3,000
Supplies
300
Service revenue
10,000
Required:
1. Determine 2011 Net income; Total Assets at 12/31/2011 and Total Liabilities at 12/31/2011.
2. Prepare the 2011 closing journal entries for this company.
3. Determine retained earnings at 12/31/2011.