Bramble Corp's unadjusted trial balance at December 1, 2017, is presented below. Debit Credit Cash $26,700 Accounts Receivable 36,100 Notes Receivable 9,800 Interest Receivable Inventory 36,090 Prepaid Insurance 3,300 Land 20.000 Buildings 141,300 Equipment 61,000 Patent 9,090 Allowance for Doubtful Accounts $550 Accumulated Depreciation-Buildings 47,100 Accumulated Depreciation-Equipment 24,400 Accounts Payable 27,800 Salaries and Wages Payable O Notes Payable (due April 30, 2018) 12,900 Income Taxes Payable Interest Payable Notes Payable (due in 2023) 36,000 Common Stock 56,100 Retained Earnings 32,130 Dividends 13,500 Sales Revenue 919,500 Interest Revenue 0Dividends 13,500 Sales Revenue 919.500 Interest Revenue Gain on Disposal of Plant Assets O Bad Debt Expense 0 Cost of Goods Sold 632,500 Depreciation Expense Income Tax Expense 0 Insurance Expense O O Interest Expense Other Operating Expenses 61,600 Amortization Expense Salaries and Wages Expense 105,500 Total $1,156,480 $1,156,480The following transactions occurred during December. Dec. Purchased equipment for $15,600, plus sales taxes of $600 (paid in cash). 2 2 Bramble sold for $3,550 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2017, was $2,000; 2017 depreciation prior to the sale of equipment was $470. 15 Bramble sold for $5,450 on account inventory that cost $3,380. 23 Salaries and wages of $6,370 were paid. Adjustment data: 1. Bramble estimates that uncollectible accounts receivable at year-end are $4,130. 2. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $3,300, 6-month premium on September 1, 2017. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $31,800. 5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 6. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,340. 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2017, total $2,110. 9. Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $13,900. It was unpaid at December 31.Your answer is partially correct. Prepare a 2017 retained earnings statement. (List items that increase retained earnings first.) BRAMBLE CORP. Retained Earnings Statement For the Year Ending December 31, 2017 Retained Earnings. 1/1/17 Add Net Income / (Loss) Less Dividends Retained Earnings. 12/31/17 v
