Fulton Company was established at the beginning of 2010 when several investors paid a total of $200,000 to purchase Fulton stock.No additional investments in stock were made during the year.By December 31,2010,Fulton had cash on hand of $45,000,office equipment (net)of $40,000,inventories of $156,000,and accounts payable of $10,000.Sales for the year were $812,000.Of this amount,customers still owed $20,000.Fulton paid dividends of $25,000 to its stockholders during 2010.
Requirements:
1.Based on the information above,prepare a balance sheet for Fulton Company as of December 31,2010.In the process of preparing the balance sheet,you must calculate the ending balance in retained earnings.
2.Prepare a statement of retained earnings for the year ended December 31,2010.
3.What was the amount of Fulton's net income for 2010?
4.Was Fulton successful during its first year in operation?

Question

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The Answer of Fulton Company was established at the beginning of 2010 when several investors paid a total of $200,000 to purchase Fulton stock.No additional investments in stock were made during the year.By December 31,2010,Fulton had cash on hand of $45,000,office equipment (net)of $40,000,inventories of $156,000,and accounts payable of $10,000.Sales for the year were $812,000.Of this amount,customers still owed $20,000.Fulton paid dividends of $25,000 to its stockholders during 2010.
Requirements:
1.Based on the information above,prepare a balance sheet for Fulton Company as of December 31,2010.In the process of preparing the balance sheet,you must calculate the ending balance in retained earnings.
2.Prepare a statement of retained earnings for the year ended December 31,2010.
3.What was the amount of Fulton's net income for 2010?
4.Was Fulton successful during its first year in operation?

Fulton Company Was Established at the Beginning of 2010 When