Question

Homework: Intro and Chapter 1, Part 1 core: 0 of 1 pt S1-7 (book/static) 4 of 11 (4 complete) Roland's Overhead Doors reports the following financial information: (Click the icon to view Roland's Overhead Doors financial information.) Requirements 1. Use the accounting equation to solve for the missing information. 2. Did Roland's Overhead Doors report net income or net loss? Requirement 1. Use the accounting equation to solve for the missing information. (Assume that the beginning retained earnings balance is $0.) Assets = Liabilities Common Stock - Dividends Revenues Expenses $ 45,800 - $ 17,220 + $ 27,460 - $ 6,500 + $ 8,850 14,230 Choose from any list or enter any number in the input fields and then click Check Answer. 1 part remaining Clear All

Answer 1

1	Asset=Liabilities+Stockholder's equity
	Stockholder's equity=Asset-Liabilities=45800-17220=$ 28580
	Stockholder's equity=Common stock+Retained earnings
	Retained earnings=Stockholder's equity-Common stock=28580-27460=$ 1120
	Retained earnings=Beginning retained earnings balance+Revenues-Expenses-Dividends
	Expenses=Beginning retained earnings balance+Revenues-Retained earnings-Dividends=0+8850-1120-6500=$ 1230
	Assets	=	Liabilities	+	Common stock	-	Dividends	+	Revenues	-	Expenses
	45800		17220		27460		6500		8850		1230
2	There is a net income since revenues > Expenses
	Net income=Revenues-Expenses=8850-1230=$ 7620
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