Answered step by step
Verified Expert Solution
Question
1 Approved Answer
no just a trial balance of for the year of dreamers corporation on December 31, 2018, follows The adjusted trial balance for the year of
no just a trial balance of for the year of dreamers corporation on December 31, 2018, follows The adjusted trial balance for the year of Dreamer Corporation at December 31, 2018, follows (Click the icon to view the adjusted trial balance) Read the requirements Requirement 1. Prepare Dreamer Corporation's 2018 single-step income statement, statement of retained earnings, and balance sheet Begin by preparing Dreamer's 2018 income statement Dreamer Corporation Income Statement Year Ended December 31, 2018 incomo before tax - X Requirements 1. Prepare Dreamer Corporation's 2018 single-step income statement statement of retained earnings, and balance sheet 2. Dreamer's lenders require that the company maintain a debt ratio no higher than 0.50. Calculate Dreamer's debt ratio at December 31, 2018 to determine whether the company is in compliance with this debt restriction If not, suggest a way that Dreamer could have avoided this difficult situation Print Done Dreamer Corporation Adjusted Trial Balance December 31, 2018 Account Debit Credit Cash $ 15,000 19,200 2,600 1,300 36,500 Accounts receivable Supplies Prepaid rent Equipment Accumulated depreciation-equipment Accounts payable Interest payable Unearned service revenue Income tax payable Note payable Common stock Retained earnings Dividends 4,300 8,900 400 800 2,400 18,200 18,000 3,000 4,000 92,300 1,800 Service revenue Depreciation expense-equipment Salary expense Rent expense Interest expense 40,300 10,700 Insurance expense Supplies expense 3,300 4,000 2,800 6,800 148,300 $ Income tax expense Total $ 148,300
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