Re: Financial Reporting Assignment Doubts

[Rameshore Khanal]

Dear Anujjee,

I could not edit your password-protected worksheets. But here are my comments:

On Problem 1-4, the retained earnings would not be the balancing figure. You should find it out by adjusting the cash dividends from Net Income. This you should show as a working note. 

Net income for the year= 72,000

Less Cash dividends =    16,000

Ending balance of Retained earnings = 56,000

As this is the first year, it is natural that there would not be any beginning balance of Retained Earnings.

On Problem 1-A, the similar argument applies. Yes, you are right, the supplies given in the question is supplies on hand (a closing stock as you pointed out)

Sincerely,

Rameshore