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Module 3 Assignment:
Prepare the statement of retained earnings and balance sheet for Ma and Pa Grocery as of December 31, 20XX.
Calculate the current ratio for the year.
Sales Revenue					322,800
Equipment					104,000
Accounts Payable					16,500
Sales Discounts					2,200
Advertising Expense					12,600
Interest Expense					1,700
Wages Payable					1,600
Accounts Receivable					6,900
Building					140,000
Common Stock					35,000
Sales returns and Allownaces					6,700
Utilities Expense					10,300
Inventory					16,400
Commission Expense					22,300
Cost of goods sold					158,400
Accumulated depreciation-equipment					26,400
Unearned sales revenue					2,500
Prepaid Rent					1,200
Office salaries expense					52,000
Accumulated depreciation-building					40,500
Rent Expense					5,800
Dividends					14,000
cash					7,800
retained earnings					87,600
dielivery expense					1,300
insurance expense					5,700
mortgage payable(long term)					37,000
Supplies					600
Requirements:
1	Prepare the Statement of Retained Earnings for the period ending 12/31/20XX. Assume a net income of $43,800.
	Ma and Pa Grocery
	Statement of Retained Earnings
	For the year ending 12/31/20XX
	Retained Earnings, 1/1/20XX								$87,600
	Plus: Net Income								43,800
	Less: Dividends								14,000
	Net Increase in Retained Earnings								117,400
	Retained Earnings, 12/31/20XX								$117,400
2	Prepare the Balance Sheet for the period ending 12/31/20XX.
	Ma and Pa Grocery
	Balance Sheet
	12/31/20XX
	ASSETS								LIABILITIES
	Current Assets:								Current Liabilities:
	Cash							$7,800	Accounts Payable						16,500
	Accounts Receivable							6,900	Wages Payable						1,600
	Inventoru							16,400	Unearned Sales Revenue						$2,500
	Supplies							600	Total Current Liabilities						20,600
	Prepaid Rent							1,200	Long-Term Liabilities:
	Total Current Assets							$32,900	Mortgage Payable						$37,000
	Fixed Assets:								Total Liabilities						$37,000
	Equipment						$104,000		STOCKHOLDER'S EQUITY
	Less: Accumulated Depreciation, Equipment						26,400	77,600	Common Stock						$35,000
	Building						$140,000		Retained Earnings						87,600
	Less: Accumulated Depreciation, Building						40,500	99,500	Total Stockholder's Equity						$29,800
	Total Assets							$210,000	Total Liabilities and Stockholder's Equity						$210,000
3	Calculate the current ratio for the year. Show your work. Formula: Current Assets / Current Liabilities
	Current Ratio		32900		=	1.60
			20600

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