Presented below is the adjusted trial balance of Larkspur Corporation at Decembe
ID: 2535850 • Letter: P
Question
Presented below is the adjusted trial balance of Larkspur Corporation at December 31, 2017.
Debit
Credit
Cash
$ ?
Supplies
1,300
Prepaid Insurance
1,100
Equipment
48,100
Accumulated Depreciation-Equipment
$ 4,100
Trademarks
1,050
Accounts Payable
10,100
Salaries and Wages Payable
600
Unearned Service Revenue
2,100
Bonds Payable (due 2024)
9,100
Common Stock
10,100
Retained Earnings
25,100
Service Revenue
10,100
Salaries and Wages Expense
9,100
Insurance Expense
1,500
Rent Expense
1,300
Interest Expense
Additional information:
Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity.)
Debit
Credit
Cash
$ ?
Supplies
1,300
Prepaid Insurance
1,100
Equipment
48,100
Accumulated Depreciation-Equipment
$ 4,100
Trademarks
1,050
Accounts Payable
10,100
Salaries and Wages Payable
600
Unearned Service Revenue
2,100
Bonds Payable (due 2024)
9,100
Common Stock
10,100
Retained Earnings
25,100
Service Revenue
10,100
Salaries and Wages Expense
9,100
Insurance Expense
1,500
Rent Expense
1,300
Interest Expense
1,000 Total $ ? $ ?Explanation / Answer
Working Note :
Required Cash balance + $64,450 = $71,300
Required Cash balance = $71,300 - $64,450 = $6,850
Answer
LARKSPUR CORPORATION
Balance Sheet
December 31, 2017.
Note 1
Retained Earnings Balance = Retained Earnings Beginning Balance - Net loss for the year
= $25,100 - $2,800 = $22,300
Amount ($) Amount ($) Assets Current Assets : Cash 6,850 Supplies 1,300 Prepaid Insurance 1,100 Total Current Assets 9,250 Equipment 48,100 Accumulated Depreciation-Equipment (4,100) 44,000 Trademarks 1,050 Total Assets $54,300 Liabilities & Shareholder's Equity Current Liabilities Accounts Payable 10,100 Salaries and Wages Payable 600 Unearned Service Revenue 2,100 Total Current Liabilities 12,800 Bonds Payable 9,100 Total Liabilities 21,900 Shareholder's Equity Common Stock 10,100 Retained Earnings [Note 1] 22,300 Total Shareholder's Equity 32,400 Total Liabilities & Shareholder's Equity $54,300