Presented below is the adjusted trial balance of Kingbird Corporation at Decembe

Question

Presented below is the adjusted trial balance of Kingbird Corporation at December 31, 2017 Debit Credit Cash Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Trademarks Accounts Payable Salaries and Wages Payable Unearned Service Revenue Bonds Payable (due 2024) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Rent Expense Interest Expense 1,510 1,310 48,310 $ 4,310 1,260 10,310 810 2,310 9,310 10,310 25,310 10,310 9,310 1,710 1,510 1,210 Total Additional information: 1. Net loss for the year was $3,430 2. No dividends were declared during 2017 Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity.)

Explanation / Answer

KINGBIRD CORPORATION

BALANCE SHEET

31 DECEMBER 2017

Working

Cash = Total of Credits of trial balances - Total of debits of trial balances

Cash = 72980 - 66130

Cash = 6850

Net Loss = Sale revenue - Expenses

Net Loss = 10310- (9310+1710+1510+1210)

Net Loss = 10310 - 13740

Net Loss = (3430)

Ending Basis of retained earnings = Opening basis - Net Loss - Dividends

Ending Basis of retaind earnings = 25310 - 3430 - 0

Ending Basis of retained earnings = 21880

Amount ($) Assets Current Assets Cash 6850 Supplies 1510 Prepaid Insurance 1310 Total Current Assets 9670 Fixed Assets Equipments 48310 Less : Accumulated Depreciation on equipments (4310) Total Fixed Assets 44000 Other Assets Trademarks 1260 Total Other Assets 1260 Total Assets 54930 Liabilities Current Liabilities Accounts Payable 10310 Salaries & Wages Payable 810 Unearned Service Revenue 2310 Total Current Liabilities 13430 Long Term Liabilities Bonds Payable 9310 Total Long Term Liabilities 9310 Total Liabilities 22740 Owner's Equity Common Stock 10310 Retained Earnings 21880 Total Owner's Equity 32190 Total Liabilities & Owner's Equity 54930

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