Part A The December 31, 2016 (pre-closing) adjusted trial balance for Sunshine E
ID: 2421871 • Letter: P
Question
Part A
The December 31, 2016 (pre-closing) adjusted trial balance for Sunshine Enterprises was as follows:
Account Title
Debits
Credits
Accounts payable
90,000
Accounts receivable
170,000
Accumulated depreciation – equipment
260,000
Capital stock
490,000
Cash
26,000
Cost of goods sold
480,000
Depreciation expense
60,000
Equipment
700,000
Interest expense
4,000
Inventory
150,000
Note payable (due in six months)
60,000
Rent expense
30,000
Retained earnings
62,000
Salaries and wages payable
8,000
Sales revenue
770,000
Salaries expense
120,000
TOTALS
1,740,000
1,740,000
Calculate the following:
1. Net income (loss)
2. Total current assets
3. Total current liabilities
4. Total shareholders' equity
NOTE: it is not necessary to prepare complete financial statements for Part A.
Account Title
Debits
Credits
Accounts payable
90,000
Accounts receivable
170,000
Accumulated depreciation – equipment
260,000
Capital stock
490,000
Cash
26,000
Cost of goods sold
480,000
Depreciation expense
60,000
Equipment
700,000
Interest expense
4,000
Inventory
150,000
Note payable (due in six months)
60,000
Rent expense
30,000
Retained earnings
62,000
Salaries and wages payable
8,000
Sales revenue
770,000
Salaries expense
120,000
TOTALS
1,740,000
1,740,000
Explanation / Answer
Particulars Amount Sales Revenue 770000 Less: Cost of goods sold 480000 Gross Profit 290000 Less: Depreciation expense 60000 Interest Expense 4000 Rent Expense 30000 Salaries Expense 120000 Net Profit 76000 Particulars Amount Accounts receivable 170000 Cash 26000 Inventory 150000 Total current assets 346000 Particulars Amount Accounts payable 90000 Notes poyable 60000 Salaries and wages payable 8000 Total current liabilities 158000 Particulars Amount Capital Stock 490000 Retained earnings 62000 Net Profit 76000 Total Stockholders equity 628000