On March 1, the Amount of Common Stock and Retained

question 202

Essay

On March 1, the amount of common stock and retained earnings in Richard's Catering Company was $100,000 and $50,000, respectively. During March, stockholders were paid $31,000 in dividends from the business. The amounts of the various assets, liabilities, revenues, and expenses are as follows: $$\begin{array} { l r } \text { Accounts payable } & \$ 10,250 \\\text { Accounts receivable } & 45,950 \\\text { Cash } & 23,840 \\\text { Fees earned } & 64,950 \\\text { Insurance expense } & 1,275 \\\text { Land } & 88,400 \\\text { Miscellaneous expense } & 1,210 \\\text { Rent expense } & 9,000 \\\text { Sal ary expense } & 20,300 \\\text { Supplies } & 900 \\\text { Supplies expense } & 525 \\\text { Utilities expense } & 2,800\end{array}$$ ?
Present, in good form, (a) an income statement for March, (b) a statement of stockholder's equity for March, and (c) a balance sheet as of March 31.

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Definitions:

Misused Assets

Resources or assets that are not being utilized in an optimal or intended manner, leading to inefficiencies or loss within an organization.

Merchandise Credits

A form of store credit issued to a customer, typically from a returned item, for future purchases at that retailer.

Actionable Misrepresentation

False or misleading statements that lead to a legal cause of action because they result in harm or losses.

Sales Puffery

Exaggerated or hyperbolic statements made by a salesperson, regarded as harmless and not legally binding, used to spark interest in a product or service.