The amounts of the assets and liabilities of Tom’s Painting Service Inc. at December 31 of the current year, and the revenues and expenses for the year are as follows:
Cash.
$10,050
Accounts receivable
8,950
Supplies .
4,000
Accounts payable
4,450
Sales
27,450
Supplies expense
5,450
Advertising expense
4,825
Truck rental expense
1,525
Utilities expense
700
Miscellaneous expense
1,400
At the beginning of the current year, Tom’s Painting Service Inc. had capital stock of $1,500 and retained earnings of $2,500. During the year, additional capital stock of $2,000 was issued and dividends of $1,000 were paid.