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llowing information 2008 Unearned Service Revenue Wages Payable Wages Expense Se

ID: 2391470 • Letter: L

Question

llowing information 2008 Unearned Service Revenue Wages Payable Wages Expense Service Revenue Rent Expense Retained Earnings, 1/1/2008 Prepaid Rent Notes Payable, Due 5/1/2020 Notes Payable, Due 5/1/2009 Land Interest Revenue Interest Payable Interest Expense Equipment Dividends Depreciation Expense Equipment Common Stock Cash Accumulated Depreciation Equipmentnn Accounts Receivable Accounts Payable 17,000 37,000 20,000 30,000 15,000 55,000 40,000 17,500 37. NET INCOME for the year is: 38. TOTAL CURRENT ASSETS reported on the December 31, 2008 balance sheet is: 39. TOTAL PROPERTY, PLANT, AND EQUIPMENT reported on the December 31, 2008 balance sheet is: 40. TOTAL ASSETS reported on the December 31, 2008 balance sheet is: 41. TOTAL CURRENT LIABILITIES reported on the December 31, 2008 balance sheet is 42. TOTAL LONG-TERM LIABILITIES reported on the December 31, 2008 balance sheet is: 43. TOTAL LIABILITIES reported on the December 31, 2008 balance sheet is 44. After all the necessary closing entries are made, the ending balance in RETAINED EARNINGS is: 45. TOTAL OWNERS EQUITY reported on the December 31, 2008 balance sheet is:

Explanation / Answer

Net income for the year

Particulars

Amount ($)

Amount ($)

Revenue:

Service revenue

   37,000.00

Interest revenue

     3,000.00

(A): Total revenue

     40,000.00

Expenditures:

Wages expense

   17,000.00

Rent expense

     3,000.00

Interest expense

     1,000.00

Depreciation

     3,500.00

     24,500.00

Net income for the year

     15,500.00

Total current assets:

Currents assets

Amount ($)

Amount ($)

Prepaid rent

     5,500.00

Cash

   40,000.00

Accounts receivable

   17,500.00

Total current assets:

     63,000.00

Property, plant and equipment

Amount ($)

Equipment

   15,000.00

Less: Accumulated depreciation

     5,000.00

Net property, plant and equipment

     10,000.00

Total assets reported

Total current assets

   63,000.00

Non-current assets:

Property, plant and equipment net of depreciation

   10,000.00

Land

   30,000.00

Total assets reported

   103,000.00

Total current liabilities reported

Unearned service revenue

     1,000.00

Wages payable

     2,000.00

Notes payable due 5/1/2009 (as it is short term)

     1,000.00

Interest payable

     1,000.00

Accounts payable

     3,000.00

Toatl current liabilities reported

       8,000.00

Total long term liabilities reported

Notes payable

   20,000.00

Total long term liabilities reported

     20,000.00

Total liabilities reported

Current liabilities total

     8,000.00

Long term liabilities

   20,000.00

Total liabilities reported

     28,000.00

Ending balance in retained earnings as on 31/12/2008

Opening balance in retained earnings

     6,000.00

Add: Net income for the year

   15,500.00

   21,500.00

Less: Dividend paid

     1,500.00

Ending balance in retained earnings as on 31/12/2008

     20,000.00

Total owners' equity as on 31/12/2008

Common stock

   55,000.00

Add: Ending retained earnings as on 31/12/2008

   20,000.00

Total owners' equity as on 31/12/2008

     75,000.00

Net income for the year

Particulars

Amount ($)

Amount ($)

Revenue:

Service revenue

   37,000.00

Interest revenue

     3,000.00

(A): Total revenue

     40,000.00

Expenditures:

Wages expense

   17,000.00

Rent expense

     3,000.00

Interest expense

     1,000.00

Depreciation

     3,500.00

     24,500.00

Net income for the year

     15,500.00

Total current assets:

Currents assets

Amount ($)

Amount ($)

Prepaid rent

     5,500.00

Cash

   40,000.00

Accounts receivable

   17,500.00

Total current assets:

     63,000.00

Property, plant and equipment

Amount ($)

Equipment

   15,000.00

Less: Accumulated depreciation

     5,000.00

Net property, plant and equipment

     10,000.00

Total assets reported

Total current assets

   63,000.00

Non-current assets:

Property, plant and equipment net of depreciation

   10,000.00

Land

   30,000.00

Total assets reported

   103,000.00

Total current liabilities reported

Unearned service revenue

     1,000.00

Wages payable

     2,000.00

Notes payable due 5/1/2009 (as it is short term)

     1,000.00

Interest payable

     1,000.00

Accounts payable

     3,000.00

Toatl current liabilities reported

       8,000.00

Total long term liabilities reported

Notes payable

   20,000.00

Total long term liabilities reported

     20,000.00

Total liabilities reported

Current liabilities total

     8,000.00

Long term liabilities

   20,000.00

Total liabilities reported

     28,000.00

Ending balance in retained earnings as on 31/12/2008

Opening balance in retained earnings

     6,000.00

Add: Net income for the year

   15,500.00

   21,500.00

Less: Dividend paid

     1,500.00

Ending balance in retained earnings as on 31/12/2008

     20,000.00

Total owners' equity as on 31/12/2008

Common stock

   55,000.00

Add: Ending retained earnings as on 31/12/2008

   20,000.00

Total owners' equity as on 31/12/2008

     75,000.00