The following data were taken from the adjusted trial balance of Kent Corporatio
ID: 341959 • Letter: T
Question
The following data were taken from the adjusted trial balance of Kent Corporation.
Kent Corporation
Adjusted Trial Balance Data
December 31, 2009
Accounts Payable $12,000
Accounts Receivable 13,000
Accumulated Depreciation-Building 6,000
Accumulated Depreciation-Furniture & Fixtures 9,000
Building 60,000
Capital Stock 40,000
Cash 24,000
Copyrights 22,000
Dividends Declared 12,000
Furniture & Fixtures 15,000
Land 25,000
Note Payable (10%, due in 5 years) 40,000
Office Supplies 1,000
Prepaid Insurance 3,000
Retained Earnings (January 1, 2009) 23,000
Salaries Payable 2,000
Service Revenue 85,000
Salaries Expense 28,000
Utilities Expense 2,000
Depreciation Expense 5,000
Insurance Expense 2,000
Office Supplies Expense 1,000
Interest Expense 4,000
Required: Prepare a classified balance sheet in good form at December 31, 2009. (Ignore income taxes).
Explanation / Answer
Kent Corporation As at December 31, 2009 Amount ASSETS Current assets Cash and cash equivalents $ 24,000 Office Supplies $ 1,000 Accounts Receivable $ 13,000 Prepaid Insurance $ 3,000 Total current assets $ 41,000 Fixed assets Building $ 54,000 Land $ 25,000 Furniture & Fixtures $ 6,000 Copyrights $ 22,000 Total non-current assets $ 107,000 Total assets $ 148,000 LIABILITIES AND EQUITY Current liabilities Accounts Payable $ 12,000 Salaries Payable $ 2,000 Total current liabilities $ 14,000 Long-term liabilities Notes payable $ 40,000 Total non-current liabilities $ 40,000 Total liabilities $ 54,000 Shareholders’ Equity Capital $ 40,000 Retained earnings $ 54,000 Total equity $ 94,000 Total liabilities and equity $ 148,000
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