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The adjusted trial balance of Bradey Irrigation System at December 31, 2018, fol

ID: 2334846 • Letter: T

Question

The adjusted trial balance of Bradey Irrigation System at December 31, 2018, follows: EEB (Click the icon to view the adjusted trial balance.) Read the requirements Bradey Irrigation Systenm Statement of Retained Earnings Year Ended December 31, 2018 Retained Earnings, January 1, 2018 Dividends Retained Earnings, December 31, 2018 Requirement 3. Prepare the company's classified balance sheet in report form at December 3 1, 2018. (If a Bradey Irrigation System Choose from any list or enter any number in the input fields and then continue to the next question

Explanation / Answer

Answer:

1

Bradey irrigation System

Statement of Retained Earning

Year Ended December 31, 2018

Retained earning, January 1, 2018

$      18,000

Net income for the year

         42,500

$      60,500

Devidend

          (3,000)

Retained earning,, December 31, 2018

$      57,500

Working notes for the above answer is as under

Bradey irrigation System

Income Statement

Year Ended December 31, 2018

Revenues:

Service Revenue

$ 68,000

Expenses:

Insurance Expense

$   1,200

Salary Expense

$ 16,700

Interest Expense

       2,000

Depreciation Expense—Equipment

       2,800

Depreciation Expense—Building

       1,600

Supplies Expense

       1,200

Total Expenses

    25,500

Net Income

$ 42,500

__________________________________________________

2

Bradey irrigation System

Balance Sheet (classied)

Assets

Amount ($)

Amount ($)

Current Assets

Cash

15000

Accounts Receivable

49200

Office Supplies

17700

Prepaid insurance

4500

Total current Assets

86400

Property, Plant and Equipment

Equipment

30000

Building

56900

Total

86900

Less: Accumulated Depreciation

-31600

55300

Total Assets

$           141,700

Liabilities and Stockholders Equity

Current Liabilities

Accounts Payable

41300

Interest Payable

2000

Salary Payable

3300

Unearned revenue

1400

Total Current Liabilities

48000

Long term Liabelity

Notes Payable

14200

Stockholders Equity

Common Stock

22000

Retained Earnings

57500

Total Stockholders Equity

79500

Total Liabilities and Stockholders Equity

$           141,700

Bradey irrigation System

Statement of Retained Earning

Year Ended December 31, 2018

Retained earning, January 1, 2018

$      18,000

Net income for the year

         42,500

$      60,500

Devidend

          (3,000)

Retained earning,, December 31, 2018

$      57,500

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