Based on the following trial balance for Barry's Automotive Shop, Inc., prepare an income statement, statement of retained earnings, and a balance sheet. Barry made no additional investments in the company during the year.
Barry's Automotive Shop, Inc.
Trial Balance
December 31 Cash................................. Accounts receivable......... Supplies............................. Repair shop equipment...... Service truck.................... Accounts payable.............. Common stock.................. Retained earnings.............. Dividends.......................... Service revenue................. Supplies expense................ Rent expense..................... Utilities expense................ Gas expense...................... Wages expense.................. Totals .............................. $13,5001,50050027,00033,00036,0003,42518,0005,0007,20022,000$167,125$2,6001,00038,525125,000167,125
Understand the fundamentals of financial instruments and market indices.
Identify and distinguish between different types of market instruments, including bonds, stocks, and derivatives.
Understand the implications of stock splits on market indices and how indices are calculated.
Comprehend the concept and applications of options (call and put) in financial markets.
Definitions:
Stated Value
A nominal value assigned to no-par shares by the issuing company, distinct from market value.
Par Value
The face value of a share of stock, as stated in the corporate charter, which may be unrelated to its market value.
No-Par Value Stock
Stock issued without a specified face value but which may have a stated value assigned by the company.
Stated Value
The value assigned to no-par-value stock by the board of directors of a company, which can then be used as the basis for accounting and legal purposes.