Use the attached adjusted trial balance to prepare the 3 basic financial stateme
ID: 2375345 • Letter: U
Question
Use the attached adjusted trial balance to prepare the 3 basic financial statements on the forms provided.
VALLEY SYSTEMS
Adjusted Trial Balance
December 31, 2002
Debit Credit
Cash.............................................................................. $58,160
Accounts receivable...................................................... 5,668
Computer supplies....................................................... 580
Prepaid insurance.......................................................... 1,665
Prepaid rent.................................................................. 825
Office equipment.......................................................... 8,000
Accumulated depreciation %u2013 Office equipment............ $400
Computer equipment.................................................... 20,000
Accumulated depreciation %u2013 Computer equipment...... 1,250
Accounts payable......................................................... 1,100
Wages payable.............................................................. 500
Unearned computer services revenue........................... 1,500
Common stock.............................................................. 83,000
Retained earnings.......................................................... 7,100 (A)
Computer services revenue........................................... 31,284
Depreciation expense %u2013 Office equipment.................... 400
Depreciation expense %u2013 Computer equipment............. 1,250
Wages expense.............................................................. 3,875
Insurance expense......................................................... 555
Rent expense................................................................. 2,475
Computer supplies expense......................................... 3,065
Advertising expense...................................................... 2,965
Mileage expense............................................................ 896
Miscellaneous expenses................................................ 250
Repairs expense %u2013 Computer........................................ 1,305 ________
Totals............................................................................ $119,034 $119,034
(A) This amount represents dividends paid out during the year. It is a new company so the Beginning Retained Earnings is $0.
Explanation / Answer
Liability
Accounts payable......................................................... 1,100
Wages payable.............................................................. 500
Unearned computer services revenue........................... 1,500
Common stock.............................................................. 83,000
less:Retained earnings.......................................................... (7100)
Profit and loss balance 13258
Asset
Cash.............................................................................. $58,160
Accounts receivable...................................................... 5,668
Computer supplies....................................................... 580
Prepaid insurance.......................................................... 1,665
Prepaid rent.................................................................. 825
Office equipment.......................................................... 8,000
Accumulated depreciation %u2013
Office equipment............ ( $400)
Computer equipment.................................................... 20,000
Less:Accumulated depreciation %u2013 ( 1,250)
Computer equipment......
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