25. 2 vegday.sepTemper for the year are taken from the adjusted trial balance (a

Question

25. 2 vegday.sepTemper for the year are taken from the adjusted trial balance (assume normal balan coilowing questions. r ie year ending December 31, 2016. On a separate pies ofas Accounts payable Accounts receivable Accumulated depreciation 80,000 22,000 9,000 26,000 19,000 16,000 55,000 15,000 11,000 230,000 3,500 Note payable, due 12/31/18 Prepaid insurance (6-month policy) Rent expense Retained earnings (1/1/16) Salaries expense Service revenue Supplies Supplies expense Patent Wages payable 5,000 18,000 62,000 30,000 125,000 Advertising expense Common stock Dividends Depreciation expense Equipment Insurance expense 3,000 5,500 20,000 15,000 1) What is Net Income for the year? 2) What is Ending Retained Earnings (12/31/16)? 3) What are Total Current Assets? 4) What is the Book Value of the Equipment? 5) What type of asset is the Patent account? ordanser 6) What are Total Assets? unt? word answer intanaibLe a What are Total Current Liabilitigs? 8) What are Total Long-term Liabilities? 9) What are Total Liabilities? 10) What is Ending Stockholder Equity (12/31/16)? BONUS: (10 points) Prepare a Classified Balance Sheet ín proper format on proper accounting paper. (see page 182 in your te Revenves Expnes net ine

Explanation / Answer

(1) Net Income for the Year :-

Service Revenue

125000

(-) Supplies Exp

5500

(-) Wages Exp

15000

(-) Salaries Exp

30000

(-) Rent Exp

18000

(-) Insurance Exp

3500

(-) Depreciation Exp

11000

(-) Advertisement Exp

19000

Net Income

23000

(2) Ending Retained Earnings :-

Retained Earnings 01/01/16

62000

(+) Net Income

23000

(-) Dividend

15000

Ending Retained Earnings

70000

(3) Total Current Assets :-

Account Receivable

9000

Cash

16000

Supplies

3000

Prepaid Insurance

5000

Total Current Assets

33000

(4) Book Value of the Equipment :-

Net Book Value = Equipment – Accumulated Dep – Current year Dep

          = 230000 – 26000 – 11000 = 193000

(5) Patent is a Intangible Assets

(6) Total Assets :-

Total Current Assets

33000

Book Value of Equipment

193000

226000

(7) Total Current Liabilities :-

A/c payable

22000

Wages Payable

15000

37000

(8) Long Term Liability = Notes Payable = 80000

(9) Total Liabilities = Current + Long Term

         = 37000 + 80000 = 117000

(10) Ending Stock Holder Equity = Common Stock + Retained Earnings

        = 55000 + 70000 = 125000

        

Service Revenue

125000

(-) Supplies Exp

5500

(-) Wages Exp

15000

(-) Salaries Exp

30000

(-) Rent Exp

18000

(-) Insurance Exp

3500

(-) Depreciation Exp

11000

(-) Advertisement Exp

19000

Net Income

23000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.