Use the attached adjusted trial balance to prepare the 3 basic financial stateme
ID: 2388806 • Letter: U
Question
Use the attached adjusted trial balance to prepare the 3 basic financial statements on the forms provided.
SIERRA 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 – Office equipment $400
Computer equipment 20,000
Accumulated depreciation – 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 – Office equipment 400
Depreciation expense – 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 – 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
SIERRA SYSTEMS
Balance Sheet
For the year ended December 31, 2002
Assets
SIERRA SYSTEMS Income Statement For the Month Ended December 31,2002 Revenues Computer Service Revenue $31,284 Expenses Wages expenses $3,875 Insurance expense 555 Rent expense 2,475 Computer supplies expense 3,065 Advertisement expense 2,965 Mileage expense 896 Miscellaneous expense 250 Repairs-computer 1,305 Depreciation-office equipment 400 Depreciation- Computer equipment 1,250 Total expenses 17,036 Net income $14,248Related Questions
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