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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 ratios

Explanation / 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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