The following accounts were taken from XYZ Company\'s unadjusted trial balance a
ID: 2420638 • Letter: T
Question
The following accounts were taken from XYZ Company's unadjusted trial balance at December 31, 2016: ABC Company has not yet recorded adjusting entries related to the following four items: A physical count revealed that supplies coating $12,000 were still on hand as of December 31, 2016. The note payable was a bank loan taken out on June 1, 2016. It is a 9-month, 14% loan. The unearned revenue in the unadjusted trial balance relates to a $36,000 payment from a customer received on March 31, 2016 for work to be performed each month for the next two years. Depreciation expense of $6,000 has not yet been recorded. Calculate the total equity reported in XYZ Company's balance sheet at December 31, 2016 after the appropriate adjusting entries have been recorded and postod. Do not use decimals in your answer.Explanation / Answer
Adjustment entries :
___________________________________________________________________________
Debit ($) Credit ($)
____________________________________________________________________________
1. Supplies a/c 12,000
Revenue a/c 12,000
2. Interest a/c 7,350
Accrued Interest a/c 7,350
3. Revenue a/c 22,500
Unearned revenue a/c 22,500
4. Depreciaton a/c 6,000
Accumulated depreciaton a/c 6,000
________________________________________________________________________________________
Income Statement:
Sales Revenue $ 95,000
Intesrest Revenue 59,000
Unearned Income (36000-22500) 13,500
Closing Supplies (adj) 12,000
Depreciation (adj) 6,000
Interest outstanding (adj) 7300
Dividends 10,000
Income tax 16,000
Rent 15,000
Supplies 29,000
Utility expenses 14,000 171,000
Net Profit 8,500
Shareholders Equity to be shown in Balance Sheet:
Contributed Capital $ 80,000
Retained earnings 40,000
Net profit 8,500