Patty's Pet Shop had the following transactions for 2016,the first year of operations:
1)Borrowed $50,000 from the bank.
2)Purchased merchandise on account,$44,000,terms 1/10,n/30.
3)Sold merchandise on account for $51,000.The inventory sold had a cost of $28,000.
4)Paid for the merchandise purchased within the discount period.
5)Collected $41,500 on the merchandise sold on account.
6)Paid operating expense of $17,000.
7)Recognized accrued interest expense of $2,000.
Required:
a)What are total assets at the end of 2016?
b)What is the balance of the cash account at the end of 2016?
c)What is gross margin for 2016?
d)What is operating income for 2016?
e)What is net income for 2016?
f)What are total liabilities at the end of 2016?
g)What is total retained earnings at the end of 2016?

Question

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The Answer of Patty's Pet Shop had the following transactions for 2016,the first year of operations:
1)Borrowed $50,000 from the bank.
2)Purchased merchandise on account,$44,000,terms 1/10,n/30.
3)Sold merchandise on account for $51,000.The inventory sold had a cost of $28,000.
4)Paid for the merchandise purchased within the discount period.
5)Collected $41,500 on the merchandise sold on account.
6)Paid operating expense of $17,000.
7)Recognized accrued interest expense of $2,000.
Required:
a)What are total assets at the end of 2016?
b)What is the balance of the cash account at the end of 2016?
c)What is gross margin for 2016?
d)What is operating income for 2016?
e)What is net income for 2016?
f)What are total liabilities at the end of 2016?
g)What is total retained earnings at the end of 2016?

Patty's Pet Shop Had the Following Transactions for 2016,the First