## Accounting: Tools for Business Decision Making, 5th Edition

1) $30,000; 2)$25,000; 3) $20,000; 4)$55,000; 5) $20,000; 6)$20,000.
1) Retained earnings on the retained statement is $25,000 Common stock = X 5,000 + X + 25,000(calculated in first step) = 60,000 30,000 + X = 60,000 X = 30,000 Common Stock =$30,000 2) Retained earnings on the retained statement is $25,000. Retained earnings on the balance sheet are the same as retained earnings from the retained earnings statement. 3) On the retained earnings statement: Net Income = X$10,000 + X - $5,000 =$25,000 $5,000 + X =$25,000 Net Income(X) = $20,000 4) Cost of goods sold = X$85,000 - X - $10,000 =$20,000 ( Net Income calculated in previous step) $75,000 - X =$20,000 $75,000 =$20,000 + X $55,000 = X Cost of goods sold =$55,000 5) On the retained earnings statement: Net Income = X $10,000 + X -$5,000 = $25,000$5,000 + X = $25,000 X =$20,000 Net Income = $20,000 6) On the retained earnings statement: Net Income = X$10,000 + X - $5,000 =$25,000 $5,000 + X =$25,000 X = $20,000 Net Income =$20,000