Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

SOLUTION TO EXERCISE 4-2

CARL's VIDEO SERVICE, INC.

Worksheet

For the Year Ended April 30, 2014

TIP: All five pairs of columns must balance for a worksheet to be complete.

TIP: The amount shown for Retained Earnings on the completed worksheet is the account balance before considering dividends and net income (or net loss) for the current accounting period. In this case, it is the corporation's first year of operations; hence, the balance of retained earnings on the worksheet is zero.