The Accountant Prepared the Following List from the Company's Accounting

question 158

Essay

The accountant prepared the following list from the company's accounting records for the year ended December 31, Year 1:
$\begin{array}{lrlr}\text { Retained Earnings } & \text { ? } & \text { Prepaid Expenses } &\$ 50,000 \\\text { Cash } & \$ 77,000 & \text { Common Stock } & 400,000 \\\text { Accounts Payable } & 50,000 & \text { Accounts Receivable } & 170,000 \\\text { Sales Revenue } & 955,000 & \text { Interest Income } & 50,000 \\\text { Cost of Sales } & 700,000 & \text { Salary Expense } & 140,000 \\\text { Land } & 750,000 & \text { Income Tax Expense } & 20,000 \\\text { Notes Payable } & 450,000 & \text { Selling Expense } & 45,000 \\\text { Inventory } & 200,000 & \text { Salaries Pavable } & 40,000\end{array}$

-Determine the following amounts for Ben & Terry's Ice Cream:

A) total revenues for Year 1
B) total expenses for Year
C) net income for Year 1

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Definitions:

Tariff

A tax imposed on imported goods, usually to protect domestic businesses and market from foreign competition.

Liberalization

The process of reducing government regulations and restrictions in an economy to encourage more business activities and investments.

GATT

General Agreement on Tariffs and Trade, a legal agreement minimizing barriers to international trade.

Tariff

A tax imposed on imported goods and services, typically to restrict trade, increase government revenue, or protect domestic industries.