EAL ADVE ISING TRIAL BALANCE DECEMBER 31, 2017 Unadjusted Adjusted Cr. Dr. $13,3
ID: 2396818 • Letter: E
Question
EAL ADVE ISING TRIAL BALANCE DECEMBER 31, 2017 Unadjusted Adjusted Cr. Dr. $13,340 19,321 7,047 2,626 61,800 Cr. Dr. $13,340 16,050 9,680 4,150 61,800 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense $23,830 7,200 2,010 0 5,460 $28,410 7,200 2,010 504 3,450 866 21,740 15,376 21,740 15,376 13,800 13,800 57,294 62,575 10,576 1,524 504 4,580 2,633 4,380 9,710 4,380 $132,910 $132,910 $142,131 $142,131Explanation / Answer
Firstly we need to calculate the closing balance of retained earnings after adjusting net income and dividends which is shown as follows:-
Net Income = Total Revenue - Total Expenses
Total Expenses = Salaries and Wages exp+Insurance exp+Interest exp+Dep exp+Supplies exp+Rent exp
= $10,576+$1,524+$504+$4,580+$2,633+$4,380 = $24,197
Net Income = Service Revenue - Total exp.
= $62,575 - $24,197 = $38,378
Retained Earnings Bal = Beg. Bal+Net Income-Dividends
= $15,376+$38,378-$13,800 = $39,954
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Balance Sheet
December 31, 2017 (Amounts in $)
2) Salaries and Wages Payable Ending Balance = Beg. Bal+Salaries and Wages exp for 2017-Cash Paid
$866 = Beg. Bal+$10,576-$10,980
Beg. Bal = $866-$10,576+$10,980 = $1,270
Therefore the balance of salaries and wages payable in Dec 31, 2016 was $1,270.
Assets Current Assets Cash 13,340 Accounts Receivable 19,321 Supplies 7,047 Prepaid Insurance 2,626 Total Current Assets 42,334 Equipment 61,800 Less: Accumulated Depreciation-Equipment (28,410) 33,390 Total Assets 75,724 Liabilities and Stockholder's Equity Current Liabilities Notes Payable 7,200 Accounts Payable 2,010 Unearned Service Revenue 3,450 Salaries and Wages Payable 866 Interest Payable 504 Total Current Liabilities 14,030 Stockholder's Equity Common Stock 21,740 Retained Earnings 39,954 Total Stockholder's Equity 61,694 Total Liabilities and Stockholder's Equity 75,724Related Questions
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