Question
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 |
| $ |
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