a. b. C. d. Supplies on hand at year-end, $2,000. Depreciation on furniture and fixtures, $20,000. Depreciation on building, $10,000. Salaries owed but not yet paid, $5,000. Accrued service revenue, $12,000. Of the $45,000 balance of unearned service revenue, $32,000 was earned during the year. Accrued income tax expense, $35,000. e. f. g. 198,000 370,000 6,000 250,000 $ 100,000 130,000 40,000 380,000 Badger Ranch Company Trial Balance December 31, 2021 Cash $ Accounts receivable Supplies Building Accumulated depreciationbuilding Furniture and fixtures Accumulated depreciationfurniture and fixtures Accounts payable Salary payable Unearned service revenue Income tax payable Common stock Retained earnings Dividends Service revenue Salary expense Supplies expense Depreciation expense-building Depreciation expense-furniture and fixtures Income tax expense 45,000 100,000 193,000 65,000 286,000 172,000 Miscellaneous expense 13,000 Total $ 1,174,000 $ 1,174,000 Requirement 2. The ledger accounts with their unadjusted balances have been opened for you. Post the adjusting entries to the accounts. Calculate each account's balance and enter the balance on the correct side of the account along with the "Bal" label. Review the adjusting entries from requirement 1. Assets Stockholders' Equity Cash Common Stock Expenses Salary Expense 198,000 100,000 172,000 5,000 Bal 198,000 Bal 150,000 (d)| Accounts Receivable Retained Earnings Bal|| 177,000 193,000 Supplies Expense 370,000 12,000 (e) 0 Bal 382,000 Bal 193,000 (a) 4,000 Ball 4,000 Supplies Dividends Depreciation Exp.- 6,000 65,000 Furniture and Fixtures (a) 2,000 0 Bal 4,000 Bal 65,000 (b)|| 20,000 Bal 20,000 Furniture and Fixures Depreciation Exp.Building 100,000 0 (0)|| 10,000 Bal 100,000 Bal 10,000 Accumulated Depreciation- Revenues Furniture and Fixtures Service Revenue Income Tax Expense 40,000 286,000 0 Building Miscellaneous Expense 250,000 13,000 Accumulated Depreciation- Building 130,000 Liabilities Accounts Payable 380,000 Salary Payable 0 Unearned Service Revenue 45,000 Income Tax Payable 0 Requirement 3. Prepare a worksheet for the adjusted trial balance. Complete the Adjustments columns of the worksheet in this step. In the following step you will complete the Adjusted Trial Balance columns of the worksheet. Review the T-accounts from requirement 2. Badger Ranch Company Trial Balance Worksheet December 31, 2021 Trial Balance Adjustments Adjusted Trial Balance Account Title Debit Credit Debit Credit Debit Credit Cash $ 198,000 Accounts receivable 370,000 6,000 Supplies Building 250,000 Accumulated depreciation- building 130,000 Furniture and fixtures 100,000 $ 40,000 Accumulated depreciation- furniture and fixtures Accounts payable Salary payable 380,000 Unearned service revenue 45,000 Accounts payable 380,000 Salary payable Unearned service revenue 45,000 Income tax payable Common stock 100,000 Retained earnings 193,000 Dividends 65,000 Service revenue 286,000 172,000 Salary expense Supplies expense Depreciation expense- building Depreciation expense- furniture and fixtures Income tax expense Miscellaneous expense 13,000 1,174,000 1,174,000 Total Requirement 4. Prepare the income statement, the statement of retained earnings, and the balance sheet. Begin by preparing the income statement. Review the adjusted trial balance from requirement 3. Badger Ranch Company Income Statement Year Ended December 31, 2021 Now prepare the statement of retained earnings. (Include a subtotal after the "Add" line of the statement.) Review the adjusted trial balance from requirement 3. Badger Ranch Company Statement of Retained Earnings Year Ended December 31, 2021 Add: Subtotal Less: Finally, prepare the balance sheet. Complete the assets portion of the balance sheet in this step. The liabilities and shareholders' equity sections will be completed in the following step. (Abbreviations used: Accum. depr. = accumulated depreciation, Depr. exp. = depreciation expense.) Review the adjusted trial balance from requirement 3. Badger Ranch Company Balance Sheet December 31, 2021 Assets Liabilities Less: Less: Stockholders' Equity
