The adjusted trial balance for Tybalt Construction as of December 31, 2017, foll
ID: 2547943 • Letter: T
Question
The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 Account Title Debit Credit No 101 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 173 Building 174 Accumulated depreciation-Building 183 Land 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 233 Unearned professional fees 251 Long-term notes payable 307 Common stock 318 Retained earnings 319 Dividends 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expense-Building 612 Depreciation expense-Equipment 623 Wages expense 633 Interest expense 637 Insurance expense 640 Rent expense 652 Supplies expense 682 Postage expense 683 Property taxes expense 684 Repairs expense 688 Telephone expense 690 Utilities expense $ 5,500 23,500 9,700 7,800 55,000 $ 27,500 153,000 51,000 63,730 16,500 3,000 3,500 2,400 700 7,600 65,500 5,500 126,700 12,500 103,000 15,000 2,200 2,300 11,220 8,250 30,000 4,100 10,000 10,500 6,400 3,700 4,700 6,700 3,000 3,100 Totals $432,400 $432,400 The December 31, 2016, credit balance of the Retained Earnings account was $126,700. Tybalt Construction is required to make a $6,000 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 retained earnings 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 ratiosExplanation / Answer
Income statement
professional fee earned
103000
rent earned
15000
dividend earned
2200
interest earned
2300
total of revenue
122500
expenses
depreciation expense-building
11220
depreciation expense-equipment
8250
wages expense
30000
insurance expense
10000
rent expense
10500
supplies expense
6400
postage expense
3700
property taxes expense
4700
repairs expense
6700
telephone expense
3000
utilities expense
3100
interest expense
4100
total of expenses
101670
net inome
20830
statement of retained earnings
openning balance
126700
add net income
20830
less dividend paid
12500
year end balance in retained earnings
135030
balance sheet
current assets
cash
5500
short term investment
23500
supplies
9700
prepaid insurance
7800
total of current asset
46500
equipment net off accumulated depreciation
55000-27500
27500
building net of accumulated depreciation
153000-51000
102000
land
63730
total of assets
239730
Liabilities and shareholders equity
current liabilities
accounts payable
16500
interest payable
3000
rent payable
3500
wages payable property taxes payable
2400
property taxes payable
700
notes payable
6000
unearned professional fee
7600
total of current liabilities
39700
long term notes payable
65500-6000
59500
total of liabilities
99200
shareholders equity
140530
common stock
5500
retained earnings
135030
total of liabilities and shareholders equity
239730
closing entries
date
explanation
debit
credit
31-Dec
professional fee earnd
103000
rent earned
15000
dividend earned
2200
interest earned
2300
income summary
122500
31-Dec
income summary
101670
depreciation expense-building
11220
depreciation expense-equipment
8250
wages expense
30000
insurance expense
10000
rent expense
10500
supplies expense
6400
postage expense
3700
property taxes expense
4700
repairs expense
6700
telephone expense
3000
utilities expense
3100
interest expense
4100
31-Dec
income summary
20830
retained earning
20830
Income statement
professional fee earned
103000
rent earned
15000
dividend earned
2200
interest earned
2300
total of revenue
122500
expenses
depreciation expense-building
11220
depreciation expense-equipment
8250
wages expense
30000
insurance expense
10000
rent expense
10500
supplies expense
6400
postage expense
3700
property taxes expense
4700
repairs expense
6700
telephone expense
3000
utilities expense
3100
interest expense
4100
total of expenses
101670
net inome
20830
statement of retained earnings
openning balance
126700
add net income
20830
less dividend paid
12500
year end balance in retained earnings
135030
balance sheet
current assets
cash
5500
short term investment
23500
supplies
9700
prepaid insurance
7800
total of current asset
46500
equipment net off accumulated depreciation
55000-27500
27500
building net of accumulated depreciation
153000-51000
102000
land
63730
total of assets
239730
Liabilities and shareholders equity
current liabilities
accounts payable
16500
interest payable
3000
rent payable
3500
wages payable property taxes payable
2400
property taxes payable
700
notes payable
6000
unearned professional fee
7600
total of current liabilities
39700
long term notes payable
65500-6000
59500
total of liabilities
99200
shareholders equity
140530
common stock
5500
retained earnings
135030
total of liabilities and shareholders equity
239730
closing entries
date
explanation
debit
credit
31-Dec
professional fee earnd
103000
rent earned
15000
dividend earned
2200
interest earned
2300
income summary
122500
31-Dec
income summary
101670
depreciation expense-building
11220
depreciation expense-equipment
8250
wages expense
30000
insurance expense
10000
rent expense
10500
supplies expense
6400
postage expense
3700
property taxes expense
4700
repairs expense
6700
telephone expense
3000
utilities expense
3100
interest expense
4100
31-Dec
income summary
20830
retained earning
20830
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