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Chrome File Edit View History Bookmarks People Window Help () e 86% i , Mon Sep

ID: 2334387 • Letter: C

Question

Chrome File Edit View History Bookmarks People Window Help () e 86% i , Mon Sep 17 6:56 AM Q Lj WileyPLUS xGroupMe e Chegg Study l Guided Solution × | Not Secure l edugen.wileyplus.com/edugenmi/main.uni Return to Blackboard Kieso, Intermediate Accounting, 16e Hele l CALCULATORPRINTER VERSION BACK NEXT ASSIGNMENT RESOURCESPresented below is the adjusted trial balance of Martinez Corporation at December 31, 2017 Debit Credit Cash Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Trademarks Accounts Payable Salaries and Wages Payable Unearned Service Revenue Bonds Payable (due 2024) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Rent Expense Interest Expense xercise 5 1,460 1,260 48,260 Problem 5 4,260 1,210 10,260 760 2,260 9,260 10,260 25,260 10,260 9,260 1,660 1,460 1,160 Total Additional information 1. Net loss for the year was $3,280. 2. No dividends were declared during 2017 Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity.) MARTINEZ CORPORATION Balance Sheet Assets

Explanation / Answer

Classified Balance sheet - A classified balance sheet is a financial statement that reports assets, liabilities, and equity accounts in meaningful subcategories for readers' ease of use.

Calculation of cash balance at Dec. 31, 2017

In a trail balance, sum of all debit is equal to sum of all credits.

Sum of all debits in the trail balance in the question = Cash + $65,730

Sum of all credits in the trail balance in the question = $72,580

Sum of all debits in the trail balance = Sum of all credits in the trail balance

Cash + $65,730 = $72,580

Cash = $72,580 - $65,730 = $6,850

Therefore, Cash balance at Dec. 31, 2017 = $6,850

MARTINEZ CORPORATION

Balance Sheet

December 31, 2017

Note 1 - Calculation of retained earnings as on December 31, 2017

MARTINEZ CORPORATION

Balance Sheet

December 31, 2017

Assets Current assets: Cash $6,850 Supplies $1,460 Prepaid Insurance $1,260 Total Current assets $9,570 Non-Current assets: Property, Plant and Equipment, net Equipment $48,260 Accumulated depreciation - Equipment ($4,260) $44,000 Intangable assets: Trademark $1,210 Total non - current assets $45,210 Total assets $54,780 Liabilities and stockholder's Equity Liabilities Current liabilities: Accounts payable $10,260 Salaries and Wages payable $760 Unearned service revenue $2,260 Total Current liabilities $13,280 Non-Current liabilites: Bond payable $9,260 Total Liabilities $22,540 Stockholder's equity: Common stock $10,260 Retained earnings [Note 1] $21,980 Total Stockholder's Equity $32,240 Total Liabilities and Stockholder's Equity $54,780
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