Question
1. The following items are taken from the general ledger of Dominican Video Company after adjusting entries were completed for year-end 2022. All are normal
1. The following items are taken from the general ledger of Dominican Video Company after adjusting entries were completed for year-end 2022. All are normal account balances.
Accounts Payable $ 15,000
Accounts Receivable 13,000
Accumulated DepreciationVideo Equipment 32,000
Additional Paid-in-CapitalCommon Stock 60.000
Advertising Expense 21,000
Allowance for Doubtful Accounts 1,000
Cash 24,000
Common Stock (60,000 shares issued and outstanding) 30,000
Depreciation Expense 16,000
Dividends 15,000
Goodwill 80,000
Insurance Expense 3,000
Note Payable (due 2024) 72,000
Prepaid Insurance 6,000
Rent Expense 17,000
Retained Earnings (1/1/22) 12,000
Salaries Expense 41,000
Salaries Payable 11,000
Service Revenue 225,000
Supplies 4,000
Supplies Expense 6,000
Video Equipment 212,000
Instructions
(a) Prepare in good form a classified balance sheet for Dominican Video Company at December 31, 2022.
(b) Write a detailed description of the steps you took to prepare this balance sheet
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
