Exercise 3-16 Prepare financial statements from an adjusted trial balance (LO3-5

Question

Exercise 3-16 Prepare financial statements from an adjusted trial balance (LO3-5) [The following information applies to the questions displayed below. The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below Credit Accounts Cash Accounts Recelvable Prepald Rent Supples Equipment Accumulated Depreclation Accounts Payable Salaries Payable Interest Payable Notes Payable (due In two years) Common Stock Retalned Earnings Service Revenue Salarles Expense Rent Expense Depreciation Expense Interest Expense Debit $ 10,300 133,000 4,300 21,500 230,000 $118,000 10,300 9,300 3,300 23,000 130,000 43,000 330,000 230,000 11,500 23,000 3,300 Totals $666,900 $666,900

Explanation / Answer

Fightin Blue Hen's Corporation Balancesheet December 31, 2018 Assets : Liabilities : Current assets Current Liabilities Cash $     10,300 Accounts Payable $     10,300 Accounts Receivables $ 1,33,000 Salaries Payable $       9,300 Prepaid rent $       4,300 Interest Payable $       3,300 Supplies $     21,500 Total Current assets $ 1,69,100 Total Current Liabilities $     22,900 Long term Liabilities: Notes Payable $     23,000 Total Long term Liabilities: $     23,000 Long term Assets: Stockholder's Equity Equipment $ 2,30,000 Common stock $ 1,30,000 Less: Accumulated Deprecialtion $ 1,18,000 Retained Earnings $ 1,05,200 Total Long term Assets: $ 1,12,000 Total Stockholder's Equity $ 2,35,200 Total assets $ 2,81,100 Total Equity and Liabilities $ 2,81,100 Working Notes: Computation of retained earnings Retained earnings statement For the year ended December 31, 2018 Opening balance January 01, 2018 $                                      43,000 Add: Net Income $                                      62,200 Closing balance December 31, 2018 $                                   1,05,200 Computation of Net Income: Revenues Service Revenue $                                   3,30,000 Less: Expenses Salaries expense $ 2,30,000 Rent Expense $     11,500 Depreciation expense $     23,000 Interest Expense $       3,300 Total Expense $                                   2,67,800 Net Income $                                      62,200

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