iData Table Requirements Miller Advertising Services Adjusted Trial Balance Dece
ID: 2337004 • Letter: I
Question
iData Table Requirements Miller Advertising Services Adjusted Trial Balance December 31, 2018 1. Prepare the income statement for the year ended December 31, 2018. 2. Prepare the statement of retained eamings for the year ended Decamber 31, 2018. 3. Prepare the classified balance sheet at December 31, 2018. Use the report form. 4. Calculate the current ratio at December 31, 2018. 5. Journalize and post the closing entries. Indicate the balance of the Retained Balance Account Title Debit S 15,000 9,100 1,000 55,000 65,000 Accounts Receivable Earnings account after the closing entries are posted. 6. Prepare a post-closing trial balance at December 31, 2018 Office Supplies Print Done S 21,000 10,000 6,500 1,500 Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock 8,000 6,000 101,400 18,000 71,000 Service Revenue Salaries Expense Supplies Expense 16,000 1,700 15,000 4,000 6,500 Depreciation Expense-Furniture Advertising Expense S 216,300 S 216,300Explanation / Answer
Answer: Requirement 1 Income statement Year ended Dec 31,2018 Revenue Service Revenue $ 71,000.00 Expenses Salaries expenses $ 16,000.00 Supplies Expenses $ 1,700.00 Depreciation Expense-Building $ 15,000.00 Depreciation Expense-Furniture $ 4,000.00 Advertising Expenses $ 6,500.00 Total expenses $ 43,200.00 (Sum of all expenses) Net income $ 27,800.00 (71000-43200) Requirement 2 Statement of retained earning Particulars Amount Opening Balance $ - Add: Net income $ 27,800.00 Less: Dividend paid $ -18,000.00 Ending balance $ 9,800.00 (27,800-18,000) Requirement 3 Balance Sheet Year ended Dec 31,2018 Particulars Amount Asset Cash $ 15,000.00 Accounts receivable $ 9,100.00 Office Supplies $ 1,000.00 Land $ 55,000.00 Building $ 65,000.00 Accumulated Depreciation-Building $ -21,000.00 Furniture $ 10,000.00 Accumulated Depreciation-Furniture $ -6,500.00 Total assets $ 1,27,600.00 (Sumof all above) Liabilities and Stockholder's equity Accounts payable $ 1,500.00 Salaries payable $ 900.00 Unearned Revenue $ 8,000.00 Notes payable $ 6,000.00 Total Liabilities $ 16,400.00 Common stock $ 1,01,400.00 Retained Earning $ 9,800.00 Stock holder's equity $ 1,11,200.00 ($101,400+9,800) $ 1,27,600.00 ($16,400+111,200) Requirement 4 Current Ratio =$25,100/16,400 (Total liabilities/ Total asset) 1.53 Requirement 5 Journal Entry Date Account title and explanation Debit Credit Service revenue $ 71,000.00 Income Summary $ 71,000.00 (To transfer Service revenue to Income summary) Income Summary $ 43,200.00 Salaries expenses $ 16,000.00 Supplies Expenses $ 1,700.00 Depreciation Expense-Building $ 15,000.00 Depreciation Expense-Furniture $ 4,000.00 Advertising Expenses $ 6,500.00 (To transfer expenses to Income Summary) Income Summary $ 27,800.00 (71,000-43,200) Retained Earning $ 27,800.00 (To transfer balance in income summary to retained earning) Requirement 6 Post closing Trial balance Debit Credit Cash 15000 Accounts receivable 9100 Office Supplies 1000 Land 55000 Building 65000 Accumulated Depreciation-Building 21000 Furniture 10000 Accumulated Depreciation-Furniture 6500 Dividend 18000 Accounts payable 1500 Salaries payable 900 Unearned Revenue 8000 Notes payable 6000 Common stock 101400 Retained Earning $ 27,800.00 Total 173100 173100
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.