Presented below is the adjusted trial balance of Metlock, Inc. at December 31, 2
ID: 2332711 • Letter: P
Question
Presented below is the adjusted trial balance of Metlock, Inc. at December 31, 2017.
Debit
Credit
Cash
$ ?
Supplies
1,390
Accounts Receivable
2,980
Prepaid Insurance
2,060
Equipment
80,000
Accumulated Depreciation—Equipment
$20,740
Trademarks
4,020
Accounts Payable
3,200
Salaries and Wages Payable
800
Unearned Service Revenue
1,680
Bonds Payable (due 2024)
31,960
Common Stock
2,580
Additional paid-in capital
15,160
Retained Earnings
14,480
Service Revenue
29,600
Salaries and Wages Expense
14,200
Insurance Expense
2,860
Rent Expense
2,760
Interest Expense
Additional information:
Prepare a classified balance sheet as of December 31, 2017.
Debit
Credit
Cash
$ ?
Supplies
1,390
Accounts Receivable
2,980
Prepaid Insurance
2,060
Equipment
80,000
Accumulated Depreciation—Equipment
$20,740
Trademarks
4,020
Accounts Payable
3,200
Salaries and Wages Payable
800
Unearned Service Revenue
1,680
Bonds Payable (due 2024)
31,960
Common Stock
2,580
Additional paid-in capital
15,160
Retained Earnings
14,480
Service Revenue
29,600
Salaries and Wages Expense
14,200
Insurance Expense
2,860
Rent Expense
2,760
Interest Expense
2,960 Total $ ? $ ?Explanation / Answer
Metlock Inc. Balance sheet as on December 31,2017 Assets Current Assets Cash 6970 Supplies 1390 Accounts Receivable 2980 Prepaid Insurance 2060 Total Current assets 13400 Equipment 80000 Accumulated depreciation - Equipment 20740 59260 Intanigble Assets - Trade marks 4020 Total Assets 76680 Liabilities and Share holder's Equity Current liabilities : Accounts payable 3200 Salaries and wages payable 800 unearned service revenue 1680 Total current liabilities 5680 Bonds payable (Due 2024) 31960 Total Liabilities 37640 Shareholder's Equity : Common stock 2580 Additional paid in capital 15160 Retained earnings 21300 Total shareholders equity 39040 Total liabilites and share holders equity 76680 Computation of Retained Earnings : Service revenue 29600 Less : Salaries and wages expense 14200 Insurance expense 2860 Rent expense 2760 Interest expense 2960 22780 Net income 6820 Retained earnings - Beginning balance 14480 Add: net income 6820 Retained earnings - closing balance 21300