Baltimore Glass Company Trial Balance December 31, 2015 Acct No. Account Title D
ID: 2489557 • Letter: B
Question
Baltimore Glass Company
Trial Balance
December 31, 2015
Acct No. Account Title Debit Credit
101 Cash 88,450
110 Accounts Receivable 195,613
120 Merchandise Inventory 256,250
125 Supplies on Hand 3,252
130 Prepaid Insurance 3,500
131 Prepaid Rent 7,500
150 Equipment 175,285
160 Accumulated Depreciation 24,260
202 Accounts Payable 72,555
210 Wages Payable -
301 Capital Stock 220,000
302 Retained Earnings, January 1 211,144
401 Sales 998,250
405 Sales Returns and Allowances 5,145
410 Interest Income 1,500
500 Purchases 560,880
501 Purchases Discounts 4,080
502 Purchases Returns and Allowances 1,200
505 Freight In 4,580
520 Advertising Expense 1,000
530 Sales Salaries Expense 88,600
532 Supplies Expense -
540 Office Salaries Expense 124,500
550 Utilities Expense 8,594
555 Insurance Expense -
560 Professional Fees Expense 3,000
570 Depreciation Expense -
580 Interest Expense 6,840
1,532,989 1,532,989
Adjusting items:
1. The remaining prepaid insurance at year end is $3,000
2. A physical inventory shows supplies on hand of $2,000 at year end
3. The prepaid rent of $7,500 covers January 2016 rent
4. Depreciation on equipment is $12,000 for the year
5. At year end sales salaries of $3,000 were earned but unpaid
6. At year end office salaries of $4,000 were earned but unpaid
7. Inventory items with a cost of $35,400 were received on the last day of the year but no invoice was received yet
8. A physical count of inventory shows a value of $219,100. The periodic inventory method is used.
Prepare a classfied balance sheet
Explanation / Answer
Answer
Note : The prepaid rent of $7,500 covers January 2016 rent will not have any effect because balance sheet is as of December 31, 2015
Baltimore Glass Company Income statement for the year 2015
Figures in $
Particulars
Amount
Sales
9,98,250
Sales Returns and Allowances
-5,145
9,93,105
Interest Income
1,500
Total Revenues
a
9,94,605
Purchases
5,60,880
Purchases Discounts
-4,080
Purchases Returns and Allowances
-1,200
Addition
35,400
5,91,000
Inventory Allowance
37,150
Freight In
4,580
Advertising Expense
1,000
Sales Salaries Expense
88,600
Unpaid sales Salaries
3,000
91,600
Supplies Expense
1,252
Office Salaries Expense
1,24,500
Unpaid Office Salaries
4,000
1,28,500
Utilities Expense
8,594
Insurance Expense
500
Professional Fees Expense
3,000
Depreciation Expense
12,000
Interest Expense
6,840
Total Expenses
b
886016
Net Income (a-b)
1,08,589
(Added to retained earnings balance)
Baltimore Glass Company classified Balance Sheet as on December 31, 2015
Figures in $
Assets
Amount
Fixed assets
Equipment
1,75,285
Accumulated Depreciation
-36,260
1,39,025
24260+12000
Total noncurrent assets
a
1,39,025
Current Assets
Cash
88,450
Accounts Receivable
1,95,613
Merchandise Inventory
2,56,250
Value allowance
37,150
2,19,100
Supplies on Hand
3,252
Supplies expense
1,252
2,000
Prepaid Insurance
3,500
Insurance expense
500
3,000
Prepaid Rent
7,500
Total Current assets
b
5,15,663
Total assets (a+b)
6,54,688
Liabilities
Shareholder's Equity
Capital Stock
2,20,000
Retained Earnings, January 1
2,11,144
Addition
1,08,589
3,19,733
Total shareholder's equity
c
5,39,733
Long term liabilities
d
0
Current Liabilities
Accounts Payable
72,555
Addition
35,400
1,07,955
Wages Payable
0
sales salaries payable
3,000
office salaries payable
4,000
Total Current Liabilities
e
1,14,955
Total shareholder's equity and liabilities (c+d+e)
6,54,688
Baltimore Glass Company Income statement for the year 2015
Figures in $
Particulars
Amount
Sales
9,98,250
Sales Returns and Allowances
-5,145
9,93,105
Interest Income
1,500
Total Revenues
a
9,94,605
Purchases
5,60,880
Purchases Discounts
-4,080
Purchases Returns and Allowances
-1,200
Addition
35,400
5,91,000
Inventory Allowance
37,150
Freight In
4,580
Advertising Expense
1,000
Sales Salaries Expense
88,600
Unpaid sales Salaries
3,000
91,600
Supplies Expense
1,252
Office Salaries Expense
1,24,500
Unpaid Office Salaries
4,000
1,28,500
Utilities Expense
8,594
Insurance Expense
500
Professional Fees Expense
3,000
Depreciation Expense
12,000
Interest Expense
6,840
Total Expenses
b
886016
Net Income (a-b)
1,08,589
(Added to retained earnings balance)
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