Use the following information to calculate for the year ended December 31, 2014 (a) net income (net loss), (b) ending retained earnings, and (c) total assets. 
LO: 4,5, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution 178 (5 min.)
(a) $6,000 (b) $10,000 (c) $32,000
-Listed below in alphabetical order are the balance sheet items of Nolan Company at December 31, 2014. Prepare a balance sheet and include a complete heading. 
Definitions:
Payroll Taxes Expense
The cost incurred by employers for taxes associated with employee salaries, such as Social Security and Medicare taxes.
FICA Social Security Taxes
Taxes collected under the Federal Insurance Contributions Act that fund Social Security and Medicare programs.
FICA Medicare
The portion of the U.S. Federal Insurance Contributions Act tax that funds Medicare, providing health insurance to individuals over 65 and some younger with disabilities.
Federal Unemployment Taxes
Taxes imposed by the federal government on employers to fund state unemployment agencies and provide unemployment compensation to workers who have lost their jobs.
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