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Company A started the year 2013 with following balances on 1/1/2013.
Cash $380,000
Accounts receivable $200,000
Raw material inventory $24,000
WIP inventory $0
Finished goods inv $0
Account payable $96,000 (from 2012 raw material purchase)
During the year:
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A corporation that has both preferred and common stock has a deficit in accuulated earnings and profit at the beginning of the year. The current earnings and profits are $25,000.
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