Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ending balance is not balancing. Is there something wrong? The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Credit
Ending balance is not balancing. Is there something wrong?
The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Credit Debit $ 11,800 148,000 5,800 29,000 380,000 $ 133,000 Accounts Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Interest Payable Notes Payable (due in two years) Common Stock Retained Earnings Service Revenue Salaries Expense Rent Expense Depreciation Expense Interest Expense 11,800 10,800 4,800 38,000 280,000 58,000 480,000 380,000 19,000 38,000 4,800 Totals $1,016,400 $1,016,400 Required: 1. Prepare an income statement for the year ended December 31, 2018. FIGHTIN' BLUE HENS CORPORATION Income Statement For the Year Ended December 31, 2018 Service revenue $ 480,000 Expenses: Salaries expense $ 380,000 38,000 Depreciation expense Rent expense 19,000 4,800 Interest expense Total expenses 441,800 38,200 Net income $ 2. Prepare a statement of stockholders' equity for the year ended December 31, 2018, assuming no common stock was issued during 2018. FIGHTIN' BLUE HENS CORPORATION Statement of Stockholders' Equity For the Year Ended December 31, 2018 Total Common Retained Stockholders' Stock Earnings Equity $ 280,000 $ 58,000 $ 338,000 38,200 38,200 Balance at January 1 Add: Net income Less: Dividends 0 0 Balance at December 31 280,000 $ 96,200 $ 376,200 3. Prepare a classified balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) FIGHTIN' BLUE HENS CORPORATION Balance Sheet December 31, 2018 Assets Liabilities Cash 11,800 $ 11,800 Accounts receivable Prepaid rent Supplies 148,000 5,800 Accounts payable Salaries payable Interest payable 10,800 4,800 29,000 Total current assets 194,600 Total current liabilities Notes payable 27,400 38,000 38,000 Total long-term liabilities Stockholders' Equity 380,000 Common stock (133,000) Retained earnings $ 280,000 Equipment Accumulated depreciation 58,000 Total long-term assets Total assets 247,000 Total stockholders' equity 441,600 Total liabilities and stockholders' equity 338,000 403,400 $ $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started