Selected Data from the Ledger of Beck Co Prepare a Single-Step Income Statement and a Statement of Retained

question 201

Essay

Selected data from the ledger of Beck Co., after adjustments, on September 30, the end of the fiscal year, are listed as follows: $$\begin{array} { l l l l } \text { Accounts Receivable } & \$ 39,120 & \text { Prepaid Insurance } & \$ 4,680 \\\text { Accumulated Depreciati on } & 60,540 & \text { Note Payable } & 77,750 \\\text { Administrative Expenses } & 90,000 & \text { Retained Earnings } & 25,000 \\\text { Common Stock } & 65,000 & \text { Salaries Payable } & 3,060 \\\text { Cost of Merchandise Sold } & 550,000 & \text { Sales } & 950,000 \\\text { Dividends } & 65,000 & \text { Selling Expenses } & 102,000 \\\text { Interest Revenue } & 10,000 & \text { Supplies } & 3,125 \\\text { Office Equipment } & 82,700 & &\end{array}$$ Prepare a single-step income statement and a statement of retained earnings.

---

Definitions:

Borrowing Costs

Expenses incurred by an entity for borrowing funds, including interest, amortization of discounts or premiums on debt, and other related costs.

Agency Theory

The theory that deals with problems caused by separating ownership from control in the modern corporation.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of property, finances, or other responsibilities.

Debt Contracts

A legal agreement specifying the conditions under which money is borrowed and must be repaid by the borrower.