The adjusted trial balance for Tybalt Construction as of December 31, 2017, foll
ID: 2402395 • Letter: T
Question
The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows.
O. Tybalt invested $8,000 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $123,300). Tybalt Construction is required to make a $6,500 payment on its long-term notes payable during 2018.
Required:
1a. Prepare the income statement for the calendar-year 2017.
1b. Prepare the statement of owner's equity for the calendar-year 2017.
1c. Prepare the classified balance sheet at December 31, 2017.
2. Prepare the necessary closing entries at December 31, 2017.
3. Use the information in the financial statements to compute the following ratios:
Adjusted Trial Balance
December 31, 2017 No. Account Title Debit Credit 101 Cash $ 8,000 104 Short-term investments 22,500 126 Supplies 9,100 128 Prepaid insurance 8,800 167 Equipment 50,000 168 Accumulated depreciation—Equipment $ 25,000 173 Building 177,000 174 Accumulated depreciation—Building 59,000 183 Land 54,420 201 Accounts payable 17,500 203 Interest payable 2,600 208 Rent payable 3,000 210 Wages payable 2,300 213 Property taxes payable 900 233 Unearned professional fees 7,800 251 Long-term notes payable 67,000 301 O. Tybalt, Capital 131,300 302 O. Tybalt, Withdrawals 12,300 401 Professional fees earned 103,000 406 Rent earned 17,500 407 Dividends earned 2,100 409 Interest earned 2,300 606 Depreciation expense—Building 12,980 612 Depreciation expense—Equipment 7,500 623 Wages expense 31,000 633 Interest expense 3,400 637 Insurance expense 7,600 640 Rent expense 10,100 652 Supplies expense 6,100 682 Postage expense 2,900 683 Property taxes expense 4,700 684 Repairs expense 7,200 688 Telephone expense 2,400 690 Utilities expense 3,300 Totals $ 441,300 $ 441,300
Explanation / Answer
Answers
Revenues:
Professional fees earned
$ 1,03,000.00
Rent earned
$ 17,500.00
Dividends earned
$ 2,100.00
Interest earned
$ 2,300.00
Total revenues
$ 1,24,900.00
Expenses:
Depreciation expense—Building
$ 12,980.00
Depreciation expense—Equipment
$ 7,500.00
Wages expense
$ 31,000.00
Interest expense
$ 3,400.00
Insurance expense
$ 7,600.00
Rent expense
$ 10,100.00
Supplies expense
$ 6,100.00
Postage expense
$ 2,900.00
Property taxes expense
$ 4,700.00
Repairs expense
$ 7,200.00
Telephone expense
$ 2,400.00
Utilities expense
$ 3,300.00
Total Expenses
$ 99,180.00
Net Income
$ 25,720.00
Statement of Owner’s Equity
O. Tybalt, Capital - Beginning Balance
$ 1,23,300.00
Add: Net Income
$ 25,720.00
Add: Capital Invested
$ 8,000.00
Less: O. Tybalt, Withdrawals
$ 12,300.00
O. Tybalt, Capital - Ending Balance
$ 1,44,720.00
ASSETS
Current Assets:
Cash
$ 8,000.00
Short-term investments
$ 22,500.00
Supplies
$ 9,100.00
Prepaid insurance
$ 8,800.00
Total Current Assets
$ 48,400.00
Plant, Property & Equipment
Equipment
$ 50,000.00
Accumulated depreciation—Equipment
$ (25,000.00)
$ 25,000.00
Building
$ 1,77,000.00
Accumulated depreciation—Building
$ (59,000.00)
$ 1,18,000.00
Land
$ 54,420.00
Total Plant, property & Equipment
$ 1,97,420.00
Total ASSETS
$ 2,45,820.00
LIABILITIES
Current Liabilities
Accounts payable
$ 17,500.00
Interest payable
$ 2,600.00
Rent payable
$ 3,000.00
Wages payable
$ 2,300.00
Property taxes payable
$ 900.00
Unearned professional fees
$ 7,800.00
Notes payable (due in 2018)
$ 6,500.00
Total Current Liabilities
$ 40,600.00
Other Liabilities
Long-term notes payable [total $ 67,000 - $6500 short term due in 2018 = $ 60,500]
$ 60,500.00
Total LIABILITIES
$ 1,01,100.00
OWNERS' EQUITY
O. Tybalt, Capital - Ending Balance
$ 1,44,720.00
Total LIABILITIES & EQUITY
$ 2,45,820.00
Date
Accounts title
Debit
Credit
31-Dec-17
Professional fees earned
$ 1,03,000.00
Rent earned
$ 17,500.00
Dividends earned
$ 2,100.00
Interest earned
$ 2,300.00
Income Summary
$ 1,24,900.00
(revenue accounts closed)
31-Dec-17
Income Summary
$ 99,180.00
Depreciation expense—Building
$ 12,980.00
Depreciation expense—Equipment
$ 7,500.00
Wages expense
$ 31,000.00
Interest expense
$ 3,400.00
Insurance expense
$ 7,600.00
Rent expense
$ 10,100.00
Supplies expense
$ 6,100.00
Postage expense
$ 2,900.00
Property taxes expense
$ 4,700.00
Repairs expense
$ 7,200.00
Telephone expense
$ 2,400.00
Utilities expense
$ 3,300.00
(expense account closed)
31-Dec-17
Income Summary
$ 25,720.00
O. Tybalt, Capital
$ 25,720.00
(Net Income transferred)
31-Dec-17
O. Tybalt, Capital
$ 12,300.00
O. Tybalt, Withdrawals
$ 12,300.00
(Drawings account closed)
Revenues:
Professional fees earned
$ 1,03,000.00
Rent earned
$ 17,500.00
Dividends earned
$ 2,100.00
Interest earned
$ 2,300.00
Total revenues
$ 1,24,900.00
Expenses:
Depreciation expense—Building
$ 12,980.00
Depreciation expense—Equipment
$ 7,500.00
Wages expense
$ 31,000.00
Interest expense
$ 3,400.00
Insurance expense
$ 7,600.00
Rent expense
$ 10,100.00
Supplies expense
$ 6,100.00
Postage expense
$ 2,900.00
Property taxes expense
$ 4,700.00
Repairs expense
$ 7,200.00
Telephone expense
$ 2,400.00
Utilities expense
$ 3,300.00
Total Expenses
$ 99,180.00
Net Income
$ 25,720.00
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