The following account balances were taken from ABC Company’s accounting records
ID: 2418562 • Letter: T
Question
The following account balances were taken from ABC Company’s accounting records at December 31, 2008:
Accounts Payable ............ $58,000 Accounts Receivable ......... $64,000 Advertising Expense ......... $14,000 Building .................... $54,000 Cash ........................ $30,000 Common Stock ................ $94,000 Cost of Goods Sold .......... $45,000 Dividends ................... $12,000 Equipment ................... $68,000 Income Tax Expense .......... $17,000 Interest Revenue ............ $36,000 Inventory ................... $62,000 Notes Payable ............... $82,000 Rent Expense ................ $10,000 Retained Earnings ........... $40,000 (at January 1, 2008) Sales Revenue ............... $99,000 Salaries Expense ............ $22,000 Salaries Payable ............ $13,000 Supplies .................... $19,000 Trademark ................... $32,000 Unearned Revenue ............ $27,000
ABC Company has not yet recorded year-end adjusting entries related to the following two items:
(1) Based on a physical count, ABC Company determined there were only $10,000 of supplies still on hand and available to be used as of December 31, 2008.
(2) The unearned revenue relates to a $27,000 payment from a customer received on May 1, 2008 for work to be performed each month for the next 18 months.
Calculate the total assets reported in ABC Company's balance sheet at December 31, 2008 after the appropriate adjusting entries have been recorded and posted. Do not use decimals in your answer.
Explanation / Answer
Account Title Dr Cr 31-Dec Supplies Expenses $9,000 Supplies $9,000 31-Dec Unearned Revenue 12000 Sales Revenue 12000 ($27000 for 18 months starting from May 1,2008 so for month from May-Dec 27000/18*8 months is earned in the year Total assets as on 31st December 2008 Particulars Amount Current Assets Cash $30,000 Accounts Receivable 64000 Supplies 10000 Inventory 62000 Fixed Assets Building 54000 Equipment 68000 Intangible Assets Trademark 32000 Total assets $320,000