Question
Based on the Trial Balance below and the Statement of Retained Earnings create a Balance Sheet Statement: ACCT # Account Name Debit Credit 1000 Cash
Based on the Trial Balance below and the Statement of Retained Earnings create a Balance Sheet Statement:
ACCT # | Account Name | Debit | Credit | ||
1000 | Cash | $402,575 |
| ||
1030 | Treasury Bills | $100,000 |
| ||
1031 | Municiple Bonds | $104,425 |
| ||
1032 | Investments | $770,500 |
| ||
1210 | Accounts Receivable | $30,000 |
| ||
1400 | Inventory | $20,000 |
| ||
1500 | Furniture and Fixtures | $0 |
| ||
1599 | Accumulated Depreciation |
| $30,000 | ||
2000 | Accounts Payable | $40,000 |
| ||
3000 | Common Stock |
| $0 | ||
3500 | Retained Earnings | $65,000 |
| ||
4000 | Gross Sales |
| $3,900,000 | ||
4100 | Sales Returns | $20,000 |
| ||
5000 | Cost of Goods Sold | $1,080,000 |
| ||
6000 | Legal and Professional Fees | $20,000 |
| ||
6020 | Advertising Expense | $50,000 |
| ||
6080 | Charitable Contributions | $79,000 |
| ||
6150 | Premiums on Key Person Life Insurance Policy | $45,500 |
| ||
6500 | Rent Expense | $120,000 |
| ||
6600 | Employee Wages | $150,000 |
| ||
6601 | Officer Salaries | $400,000 |
| ||
7010 | Interest Income: Taxable |
| $10,000 | ||
7011 | Interest Income: NonTaxable |
| $7,000 | ||
7020 | Dividend Income |
| $30,000 | ||
8100 | Depreciation | $30,000 |
| ||
8200 | Interest Expense | $50,000 |
| ||
9000 | Federal Income Tax Expense | $360,000 |
| ||
9010 | State Income and Payroll Taxes Paid | $40,000 |
| ||
|
| $3,977,000 | $3,977,000 | ||
Statement of Retained Earnings |
| ||||
For the Year Ending December 31, 2019 |
| ||||
Retained Earnings, Jan. 1 | $ 650,000 |
| |||
Add: Net Income | $ 1,627,000 |
| |||
$ 2,277,000 |
| ||||
Less: Dividends | $ (1,692,000) |
| |||
Retained Earnings, Dec. 31 | $ 585,000 |
| |||
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