The Assets and Liabilities of S&P Day Spa at December

question 32

Essay

The assets and liabilities of S&P Day Spa at December 31, 2011, and its revenue and expenses for the year are listed below. The Retained Earnings balance was $57,830 at January 1, 2011.
Based on the data provided for S&P Day Spa, prepare a balance sheet as of December 31, 2011.

---

Definitions:

Noncumulative

Noncumulative refers to dividends on preferred stock that, if not declared or paid in a given period, do not accumulate and are not owed to shareholders in future periods.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, granting them rights to dividends and votes on company matters.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.