Please help me correct my balance sheet! I will give correct answer kudos! Thanks!
The following are the trial balance and the other information related to Matthew Consulting Engineer. MATTHEW CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash $29,500 Accounts Receivable 56,400 Allowance for Doubtful Accounts $718 Supplies 1,730 Prepaid Insurance 1,050 Equipment 33,800 Accumulated Depreciation-Equipment 5,987 Notes Payable 7,200 Common Stock 10,000 Retained Earnings 25,342 Service Revenue 115,427 Rent Expense 9,334 Salaries and Wages Expense 30,360 Utilities Expenses 1,750 Office Expense 750 $164,674 $164,674 1. 2. 3. 4. 5. 6. 7. Fees received in advance from clients $6,010, which were recorded as revenue. Services performed for clients that were not recorded by December 31, $5,145. Bad debt expense for the year is $1.294. Insurance expired during the year $471. Equipment is being depreciated at 10% per year. Matthew gave the bank a 90-day, 10% note for $7,200 on December 1, 2020. Rent of the building is $718 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense. Office salaries and wages earned but unpaid December 31, 2020, $2,292. 8. Prepare an income statement for 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) MATTHEW CONSULTING ENGINEER Income Statement For the Year Ended December 31, 2020 Revenues Service Revenue $ 114562 Expenses Rent Expense $ 8,616 i Salaries and Wages Expense 32652 i Utilities Expenses 1750 i Office Expense 750 i Bad Debt Expense 1294 Insurance Expense 471 3380 i Depreciation Expense Interest Expense 60 Total Expenses 48973 Net Income /(Loss) $ 65589 (62) Your answer is correct. Prepare a retained earnings statement for 2020. Matthew paid a $17,100 cash dividend during the year. (recorded in Retained Earnings.) (List items that increase owner's capital first.) MATTHEW CONSULTING ENGINEER Statement of Retained Earnings For the Year Ended December 31, 2020 Retained Earnings, January 1 42442 Add : 65589 Net Income /(Loss) Dividends Less : 17100 Retained Earnings, December 31 $ 90931 MATTHEW CONSULTING ENGINEER Balance Sheet December 31, 2020 Assets Current Assets 29 Accounts Receivable 60668 Less : Allowance for Doubtful Accounts 2164 58 Supplies 2 Prepaid Insurance Prepaid Rent Total Current Assets Equipment 31 Less : Accumulated Depreciation Equipment 11 Total Assets Total Liabilities and Stockholders' Equity Current Liabilities Salaries and Wages Payable 2 Uncared Service Revenue Notes Payable Interest Payable Total Current Liabilities Total Stockholders' Equity Total Liabilities and Stockholders Equity MATTHEW CONSULTING ENGINEER Balance Sheet December 31, 2020 Assets 29500 60668 2164 58504 2390 612 748 $ 91754 31700 11095 20605 112359 Total Liabilities and Stockholders' Equity $ $ 2579 6150 7200 60 15989 96370 $ 112359
