Answer
1) $30,000;
2) $25,000;
3) $20,000;
4) $55,000;
5) $20,000;
6) $20,000.
Work Step by Step
1) Retained earnings on the retained statement is $25,000
Common stock = X
5,000 + X + 25,000(calculated in first step) = 60,000
30,000 + X = 60,000
X = 30,000
Common Stock = $30,000
2) Retained earnings on the retained statement is $25,000. Retained earnings on the balance
sheet are the same as retained earnings from the retained earnings statement.
3) On the retained earnings statement:
Net Income = X
$10,000 + X - $5,000 = $25,000
$5,000 + X = $25,000
Net Income(X) = $20,000
4) Cost of goods sold = X
$85,000 - X - $10,000 = $20,000 ( Net Income calculated in previous step)
$75,000 - X = $20,000
$75,000 = $20,000 + X
$55,000 = X
Cost of goods sold = $55,000
5) On the retained earnings statement:
Net Income = X
$10,000 + X - $5,000 = $25,000
$5,000 + X = $25,000
X = $20,000
Net Income = $20,000
6) On the retained earnings statement:
Net Income = X
$10,000 + X - $5,000 = $25,000
$5,000 + X = $25,000
X = $20,000
Net Income = $20,000
