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Page 15 Adjusted Trial Balance December 31, 2017 Cash Accounts Receivable Allowa

ID: 2565451 • Letter: P

Question

Page 15 Adjusted Trial Balance December 31, 2017 Cash Accounts Receivable Allowance for Doubtful Accounts $43,500 45,000 Supplies Prepaid Insurance Land $ 3,100 18,600 1,500 2,000 75,000 650,000 5 Accumulated Depreciation- Building Equipment Accumulated Depreciation - Equipment Accounts Payable Unearned Revenue Salaries Payable Notes Payable, due May. 31, 2018 Mortgage Payable due Dec. 31, 2025 Common Stock Retained Earnings Dividends Sales Sales Returns&Allowances; Sales Discounts Costs of Goods Sold Salaries Expense Depreciation Expense Freight Out Advertising Expense Utilities Expense Supplies Expense Bad Debt Expense Interest Revenue Gain on sale of Equipment Loss on sale of Building Interest Expense 340,000 390,000 160,000 42,400 22,500 1,200 25,000 128,000 250,000 272,000 35,000 197,000 4,300 1,700 118,000 30,000 14,000 800 3,000 2,400 1,800 2,600 700 2,000 3,500 Total

Explanation / Answer

1

income statement

Explanation

Debit

credit

sales

197000

less sales return and allowance

4300

less sales discount

1700

net sales

191000

less cost of goods sold

118000

gross profit

73000

less operating expenses

54600

salaries

30000

depreciation expense

14000

freight out

800

advertising

3000

utilities expense

2400

supplies expense

1800

bad debt expenses

2600

operating profit

18400

interest revenue

700

gain on sale of equipment

2000

loss on sale of building

-3500

interest expense

-1200

net income

16400

2

statement of retained earning

retained earning

272000

add net income

16400

less dividend paid

35000

year end balance in retained earnings

253400

3

balance sheet

Assets

current assets

cash

43500

accounts receivables net

41900

inventory

18600

supplies

1500

prepaid insurance

2000

total of current assets

107500

land

75000

building net of accumulated depreciation

310000

equipment net of accumulated depreciation

230000

total of assets

722500

Liabilities and shareholders equity

current liabilities

accounts payable

42400

unearned revenue

22500

salaries payable

1200

notes payable

25000

total of current liabilities

91100

mortgage payable

128000

total of liabilities

219100

stockholders equity

common stock

250000

retained earnings

253400

total of shareholders equity

503400

total of liabilities and share holders equity

722500

1

income statement

Explanation

Debit

credit

sales

197000

less sales return and allowance

4300

less sales discount

1700

net sales

191000

less cost of goods sold

118000

gross profit

73000

less operating expenses

54600

salaries

30000

depreciation expense

14000

freight out

800

advertising

3000

utilities expense

2400

supplies expense

1800

bad debt expenses

2600

operating profit

18400

interest revenue

700

gain on sale of equipment

2000

loss on sale of building

-3500

interest expense

-1200

net income

16400

2

statement of retained earning

retained earning

272000

add net income

16400

less dividend paid

35000

year end balance in retained earnings

253400

3

balance sheet

Assets

current assets

cash

43500

accounts receivables net

41900

inventory

18600

supplies

1500

prepaid insurance

2000

total of current assets

107500

land

75000

building net of accumulated depreciation

310000

equipment net of accumulated depreciation

230000

total of assets

722500

Liabilities and shareholders equity

current liabilities

accounts payable

42400

unearned revenue

22500

salaries payable

1200

notes payable

25000

total of current liabilities

91100

mortgage payable

128000

total of liabilities

219100

stockholders equity

common stock

250000

retained earnings

253400

total of shareholders equity

503400

total of liabilities and share holders equity

722500