Use the Following Accounts and Information to Prepare,in Good Form,an

question 161

Essay

Use the following accounts and information to prepare,in good form,an income statement,statement of retained earnings,and balance sheet for Cray Enterprises for the year ended December 31,2010.
$\begin{array}{lrlr}\text { Accounts Payable } & \$ 4,800 & \text { Land } & \$ 39,000 \\\text { Accounts Receivable } & 600 & \text { Notes Payable } & 6,000 \\\text { Buildings } & 52,000 & \text { Rent Expense } & 3,600 \\\text { Cash } & 26,200 & \text { Retained Earnings, } & 84,400 \\& & \text { December 31, 2009 } \\\text { Commissions Earned } & 19,000 & \text { Salaries Expense } & 8,400 \\\text { Common Stock } & 20,000 & \text { Supplies } & 400 \\\text { Dividends } & 3,000 & & \\\text { Insurance Expense } & 1,000 & &\end{array}$

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Definitions:

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Stock Market

A marketplace where stocks (shares of ownership in businesses) are bought and sold, often indicating the general health of an economy.

Stocks

Shares of ownership in companies, traded on stock markets, that represent a claim on the company's assets and earnings.

Invest

To allocate resources, typically money, in the expectation of generating an income or profit.