Form a Classified Balance Sheet ABC Corporation Adjusted Trial Balance December
ID: 2518117 • Letter: F
Question
Form a Classified Balance Sheet
ABC Corporation Adjusted Trial Balance December 31, 2016 Debit Credit Cash $ 834,544 Accounts Receivable 442,120 Allowance for doubtful accounts 75,000 Inventory 70,000 Allowance to Reduce Inventory to NRV 16,000 Prepaid Insurance 4,500 Land 88,000 Building 37,500 Accumulated depreciation: building 1,265 Equipment 21,600 Accumulated depreciation: equipment 9,900 Patent 45,000 Accounts Payable 88,851 Interest Payable 35,000 Income taxes payable 37,221 Wages payable 4,000 Unearned rent revenue 9,000 Bonds payable 700,000 Premium on Bonds payable 52,045 Common stock 135,000 PIC in Excess of Par- Common Stock 130,000 Paid in Capital- Treasury Stock 6,000 Retained earnings Treasury stock 10,000 Dividends 28,000 Sales Revenue 790,000 Rent Revenue 4,500 Purchases 177,000 Wages expense 66,150 Bad debt expense 75,000 Office expense 28,500 Insurance expense 22,500 Advertising expense 9,240 Depreciation expense 11,165 Interest expense 31,171 Loss on inventory 16,000 Utilities expense 33,571 Impairment loss expense 5,000 Income taxes expense 37,221 Total 2,093,782 2,093,782Explanation / Answer
Answer
Revenues :
Sales Revenue
$ 7,90,000.00
Rent Revenue
$ 4,500.00
Total
$ 7,94,500.00
Expenses:
Purchases
$ 1,77,000.00
Wages expense
$ 66,150.00
Bad debt expense
$ 75,000.00
Office expense
$ 28,500.00
Insurance expense
$ 22,500.00
Advertising expense
$ 9,240.00
Depreciation expense
$ 11,165.00
Interest expense
$ 31,171.00
Loss on inventory
$ 16,000.00
Utilities expense
$ 33,571.00
Impairment loss expense
$ 5,000.00
Income taxes expense
$ 37,221.00
Expenses total
$ 5,12,518.00
Net Income transferred to retained Earnings
$ 2,81,982.00
ASSETS
Current Assets:
Cash
$ 8,34,544.00
Accounts receivables
$ 4,42,120.00
(-) Allowances
$ 75,000.00
$ 3,67,120.00
Inventory
$ 70,000.00
(-) Allowances to reduction
$ 16,000.00
$ 54,000.00
Prepaid Insurance
$ 4,500.00
Total Current Assets
$ 12,60,164.00
Plant, Property & Equipment:
Land
$ 88,000.00
Building
$ 37,500.00
Accumulated depreciation: building
$ (1,265.00)
$ 36,235.00
Equipment
$ 21,600.00
Accumulated depreciation: equipment
$ (9,900.00)
$ 11,700.00
Total PPE
$ 1,35,935.00
Intangibles:
Patent
$ 45,000.00
TOTAL ASSETS
$ 14,41,099.00
LIABILITIES & EQUITY
Current Liabilities:
Accounts Payable
$ 88,851.00
Interest Payable
$ 35,000.00
Income taxes payable
$ 37,221.00
Wages payable
$ 4,000.00
Unearned rent revenue
$ 9,000.00
Total Current Liabilities
$ 1,74,072.00
Long Term Liabilities:
Bonds payable
$ 7,00,000.00
Premium on Bonds payable
$ 52,045.00
Total Long Term Liabilities
$ 7,52,045.00
Stockholder's Equity:
Common stock
$ 1,35,000.00
PIC in Excess of Par- Common Stock
$ 1,30,000.00
Paid in Capital- Treasury Stock
$ 6,000.00
Retained earnings [281982 (-) 28000 dividends]
$ 2,53,982.00
Total
$ 5,24,982.00
Less: Treasury Stock
$ 10,000.00
Total Stockholder's Equity
$ 5,14,982.00
Total Liabilities & Stockholder's Equity
$ 14,41,099.00
Revenues :
Sales Revenue
$ 7,90,000.00
Rent Revenue
$ 4,500.00
Total
$ 7,94,500.00
Expenses:
Purchases
$ 1,77,000.00
Wages expense
$ 66,150.00
Bad debt expense
$ 75,000.00
Office expense
$ 28,500.00
Insurance expense
$ 22,500.00
Advertising expense
$ 9,240.00
Depreciation expense
$ 11,165.00
Interest expense
$ 31,171.00
Loss on inventory
$ 16,000.00
Utilities expense
$ 33,571.00
Impairment loss expense
$ 5,000.00
Income taxes expense
$ 37,221.00
Expenses total
$ 5,12,518.00
Net Income transferred to retained Earnings
$ 2,81,982.00