Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Given the adjusted trial balance below, prepare (in good form) an income statement, statement of retained earnings, and balance sheet. To do so you

6. Given the adjusted trial balance below, prepare (in good form) an income statement, statement of retained earnings, and balance sheet. To do so you will need to determine the missing amounts for A, B, C, and D. The name of the business is Oak Manufacturing and the accounting period coincides with the calendar year. The balance in the Retained Earnings account as of December 31, 20X5 is $6,600.

Oak Manufacturing

Adjusted Trial Balance

December 31, 20x5

Cash

$ 1,590

Accounts Receivable

3,600

Supplies

60

Prepaid Insurance

60

Office Equipment

6,000

Accumulated DepreciationOffice Equipment

$ B

Accounts Payable

1,600

Salaries Payable

210

Common Stock

2,000

Retained Earnings

D

Service Revenue

6,600

Salaries Expense

A

Supplies Expense

240

Insurance Expense

300

Depreciation ExpenseOffice Equipment

300

______

$C

$15,510

ANS:

Oak Manufacturing

Income Statement

For the Year Ended December 31, 20x5

Service revenue

$

Expenses

Salaries expense

Supplies expense

Insurance expense

Depreciation expenseoffice equipment

Total expenses

Net income

$

Oak Manufacturing

Statement of Retained Earnings

For the Year Ended December 31, 20x5

Retained Earnings, December 31, 20x4

$

Net income

Subtotal

$

Less: Dividends

Retained Earnings, December 31, 20x5

$

Oak Manufacturing

Balance Sheet

December 31, 20x5

Assets

Cash

$

Accounts receivable

Supplies

Prepaid insurance

Office equipment

$

Less accumulated depreciation

Total assets

$

Liabilities

Accounts payable

$

Salaries payable

Total liabilities

$

Stockholders' Equity

Common Stock

Retained Earnings

Total liabilities and stockholders' equity

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Strategies For Business Decisions

Authors: Ronald Hilton, Michael Maher, Frank Selto

3rd Edition

0072830085, 978-0072830088

More Books

Students also viewed these Accounting questions

Question

Explain the significance of employee selection.

Answered: 1 week ago

Question

Discuss the performance appraisal process.

Answered: 1 week ago