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$2023/2022$

Dividends $3,200/4,800$

Advertising expense $?/6,400$

Common stock $40,000/40,000$

Cash $18,600/13,500$

Retained earnings, Jan. $1221,900/?$

Equipment $337,230/273,400$

Supplies expense $500/300$

Notes payable $20,000/16,000$

Rent expense $13,100/12,800$

Supplies $230/730$

Accounts payable $?/10,600$

Revenues $183,000/164,000$

Accounts receivable $2,800/?$

Payroll expense $93,000/82,000$

Retained earnings, Dec. $31287,800/221,900$

Required:

a$.$ Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine

the missing values.

b$.$ Assess the company$$s comparative results for the two$-$year period from the perspective of a bank and then from

the perspective of an investor $($i$.$e$.$ did things get better or worse from those perspectives and why$).$ If you were a

bank would you lend the company more money? If you were an investor would you consider investing more

money in the company? Briefly explain your decisions.

c$.$ During January of $2024,$ the company had the following transactions$/$events:

Jan. $1$ Owners invested another $$8,000$ into the company

Jan. $2$ Purchased $$8,100$ of equipment

Jan. $3$ Paid $$250$ for advertising

Jan. $6$ Purchased $$400$ of supplies on account

Jan. $10$ Paid rent of $$8,000$

Jan. $14$ Sold services to customers for $$32,400$

Jan. $18$ Borrowed $$4,000$ from a bank

Jan. $31$ A $$680$ dividend is paid to owners

Jan. $31$ Paid employee payroll of $$14,000$

Jan. $31$ Supplies on hand reported at $$180$Once you have completed the assignment below, you must submit your answers using the answer sheet provided in Canvas; not all answers will be turned in$.$ Once submitted, your answers cannot be changed, but where appropriate, partial credit will be given. For future reference, you should keep a copy of your answers $($outside of Canvas$)$ as they will not be available to view given the nature of the grading process.

The Lowe Company was founded in $2019$; since then, the company has been fairly successful; however, in an effort to save some money, the president has been keeping track of the financial records rather than hiring a professional accountant. Although some data is missing, a comparative report of year$-$end account balances appears below; all numbers are as of December ${31}^{st}$ unless noted otherwise.

$\backslash$table$[[,{2023}_{?},2022$

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