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The following is the Bravo Unlimited adjusted Trail Balance. Bravo Unlimited Adj

ID: 2399443 • Letter: T

Question

The following is the Bravo Unlimited adjusted Trail Balance.

Bravo Unlimited

Adjusted Trial Balance

December 31, 2016

Account Title

Debit

Credit

Cash

$88,450

Accounts Receivable

231,860

Supplies

17,255

Equipment

395,285

Accumulated Depreciation

$224,260

Accounts Payable

72,555

Capital Stock

220,000

Retained Earnings

111,145

Service Revenue

893,105

Interest Income

1,500

Dividends

2,000

Rent Expense

58,500

Wages Expense

527,260

Supplies Expense

42,520

Utilities Expense

8,595

Depreciation Expense

150,840

________

     Totals

$1,522,565

$1,522,565

Use this information to prepare the Balance Sheet for the fiscal year. There are additional lines in the formatted Balance Sheet form to allow for authorized alternate presentations.

Bravo Unlimited

Adjusted Trial Balance

December 31, 2016

Account Title

Debit

Credit

Cash

$88,450

Accounts Receivable

231,860

Supplies

17,255

Equipment

395,285

Accumulated Depreciation

$224,260

Accounts Payable

72,555

Capital Stock

220,000

Retained Earnings

111,145

Service Revenue

893,105

Interest Income

1,500

Dividends

2,000

Rent Expense

58,500

Wages Expense

527,260

Supplies Expense

42,520

Utilities Expense

8,595

Depreciation Expense

150,840

________

     Totals

$1,522,565

$1,522,565

Explanation / Answer

Step 1: Calculate Net Income

The net income is calculated as below:

_____

Step 2: Prepare Balance Sheet

The balance sheet is prepared as below:

Bravo Unlimited Income Statement For the Year Ended 2016 Revenues: Service Revenue 893,105 Interest Income 1,500 Total Revenues 894,605 Less Expenses: Rent Expense 58,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 150,840 Total Expenses 787,715 Net Income $106,890