Use the following information from the ADJUSTED TRIAL BALANCE of SAM Corp. for t
ID: 2392931 • Letter: U
Question
Use the following information from the ADJUSTED TRIAL BALANCE of SAM Corp. for the fiscal year ended December 31, 2008 to answer the next 17 questions.
Unearned Service Revenue 1,000
Wages Payable 2,000
Wages Expense 17,000
Service Revenue 37,000
Rent Expense 3,000
Retained Earnings, 1/1/2008 6,000
Prepaid Rent 5,500
Notes Payable, Due 5/1/2020 20,000
Notes Payable, Due 5/1/2009 1,000
Land 30,000
Interest Revenue 3,000
Interest Payable 1,000
Interest Expense 1,000
Equipment 15,000
Dividends 1,500
Depreciation Expense -- Equipment 3,500
Common Stock 55,000
Cash 40,000
Accumulated Depreciation – Equipment 5,000
Accounts Receivable 17,500
Accounts Payable 3,000
NET INCOME for the year is:
TOTAL CURRENT ASSETS reported on the December 31, 2008 balance sheet is:
TOTAL PROPERTY, PLANT, AND EQUIPMENT reported on the December 31, 2008 balance sheet is:
TOTAL ASSETS reported on the December 31, 2008 balance sheet is:
TOTAL CURRENT LIABILITIES reported on the December 31, 2008 balance sheet is:
TOTAL LONG-TERM LIABILITIES reported on the December 31, 2008 balance sheet is:
TOTAL LIABILITIES reported on the December 31, 2008 balance sheet is:
8. Afterall the necessary closing entries are made, the ending balance in RETAINED EARNINGS is:
TOTAL OWNERS’ EQUITY reported on the December 31, 2008 balance sheet is:
Explanation / Answer
Answers
Revenues:
Service Revenue
$ 37,000.00
Interest Revenue
$ 3,000.00
Total revenues
$ 40,000.00
Expenses:
Wages Expenses
$ 17,000.00
Rent Expense
$ 3,000.00
Interest expense
$ 1,000.00
Depreciation expense - equipment
$ 3,500.00
Total expenses
$ 24,500.00
Net Income
$ 15,500.00
ASSETS
Current Assets:
Cash
$ 40,000.00
Accounts receivables
$ 17,500.00
Prepair Rent
$ 5,500.00
Total Current Assets
$ 63,000.00
Property, Plant & Equipment:
Land
$ 30,000.00
Equipment
$ 15,000.00
Accumulated Depreciation Equipment
$ (5,000.00)
$ 10,000.00
Total PPE
$ 40,000.00
ASSETS
$ 1,03,000.00
LIABILITIES
Current Liabilities:
Unearned Service Revenue
$ 1,000.00
Wages payable
$ 2,000.00
Notes Payable [short term]
$ 1,000.00
Interest Payable
$ 1,000.00
Accounts Payable
$ 3,000.00
Total Current Liabilities
$ 8,000.00
Long Term liabilities:
Notes Payable [long term]
$ 20,000.00
Total Liabilities
$ 28,000.00
STOCKHOLDERS' EQUITY
Common Stock
$ 55,000.00
Retained Earnings [+ Net Income - Dividends]
$ 20,000.00
Total Stockholder's Equity
$ 75,000.00
LIABILITIES & STOCKHOLDERS' EQUITY
$ 1,03,000.00
Net Income
$ 15,500.00
Total Current Assets
$ 63,000.00
Total Property Plant & Equipment
$ 40,000.00
Total Assets
$ 1,03,000.00
Total Current Liabilities
$ 8,000.00
Total Long Term Liabilities
$ 20,000.00
Total Liabilities
$ 28,000.00
Retained earnings
$ 20,000.00
Total Owner's Equity
$ 75,000.00
Revenues:
Service Revenue
$ 37,000.00
Interest Revenue
$ 3,000.00
Total revenues
$ 40,000.00
Expenses:
Wages Expenses
$ 17,000.00
Rent Expense
$ 3,000.00
Interest expense
$ 1,000.00
Depreciation expense - equipment
$ 3,500.00
Total expenses
$ 24,500.00
Net Income
$ 15,500.00
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