The Ping Corporation was started on January 1, 2013, with the issuance of $20,000 of stock. During 2013, the company provided $30,000 of services on account and collected $18,000 of that amount. Ping incurred $23,000 of expenses, and paid $20,000 of that amount during 2013. On December 31, 2013, Ping paid investors a $800 cash dividend and accrued $2,000 of salary expense.
Required:
1) What is the net income for year ending December 31, 2013?
2) Prepare Ping Corporation's Statement of Cash Flows for the year ended December 31, 2013.
3) What is the balance in Ping's retained earnings account after closing entries are made on December 31, 2013?

Question

Quizplus · Accepted Answer

The Answer of The Ping Corporation was started on January 1, 2013, with the issuance of $20,000 of stock. During 2013, the company provided $30,000 of services on account and collected $18,000 of that amount. Ping incurred $23,000 of expenses, and paid $20,000 of that amount during 2013. On December 31, 2013, Ping paid investors a $800 cash dividend and accrued $2,000 of salary expense.
Required:
1) What is the net income for year ending December 31, 2013?
2) Prepare Ping Corporation's Statement of Cash Flows for the year ended December 31, 2013.
3) What is the balance in Ping's retained earnings account after closing entries are made on December 31, 2013?

The Ping Corporation Was Started on January 1, 2013, with the Issuance