Prepare a December 31, 2017 balance sheet with the given information.
Blue Spruce Corp's unadjusted trial balance at December 1, 2017 is presented below. Credit Debit $25,300 36,400 8.900 0 36,390 3,300 20,600 143,400 60,000 10,350 $450 47,800 24,000 27,600 0 12,000 0 Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patent Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2018) Income Taxes Payable Interest Payable Notes Payable (due in 2023) Common Stock Retained Earnings Dividends Sales Revenue Interest Revenue Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 0 35,100 59,900 19,390 13,500 929,000 0 0 0 632,500 0 0 0 0 61,600 0 103,000 $1,155,240 $1,155,240 The following transactions occurred during December. Dec. 2 Purchased equipment for $17,400, plus sales taxes of $600 (paid in cash). 2 Blue sold for $3,500 equipment which originally cost $5,400. Accumulated depreciation on this equipment at January 1, 2017, was $1,900; 2017 depreciation prior to the sale of equipment was $480. Blue sold for $5,400 on account inventory that cost $3,450. Salaries and wages of $6,360 were paid. 15 23 Adjustment data: 1. 2. 3. 4. 5. 6. Blue estimates that uncollectible accounts receivable at year-end are $3,810. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. The balance in prepaid insurance represents payment of a $3,300, 6-month premium on September 1, 2017. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,300. 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. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. Unpaid salaries at December 31, 2017, total $2,090. 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. Income tax expense was $13,300. It was unpaid at December 31. 7. 8. 9. 10 Your answer is correct. Prepare an adjusted trial balance at December 31, 2017. BLUE SPRUCE CORP. Adjusted Trial Balance December 31, 2017 Debit Credit Cash 4440 S Accounts Receivable 41800 Notes Receivable 8900 Interest Receivable 534 Inventory 32940 Prepaid Insurance 1100 Land 20600 Buildings 143400 Equipment 72600 Patents 9200 Allowance for Doubtful Accounts 3810 Accumulated Depreciation-Buildings 51570 Accumulated Depreciation Equipment 32199 Accounts Payable 27600 Salaries and Wages Payable 2090 Notes Payable 47100 Income Taxes Payable 13300 Interest Payable 4710 Common Stock 59900 Retained Earnings 19390 Dividends 13500 Sales Revenus 934400 Interest Revenus 534 Gain on Disposal of Plant Assats 490 Bad Debt Expense 3360 Cost of Goods Sold 635950 Depreciation Expense 14348 Income Tax Expense 13300 Insurance Expense 2200 Interest Expense 4710 Other Operating Expenses 61600 Amortization Expense 1150 Salaries and Wages Expense 111450 Totals $ 11970B2 1197092 BLUE SPRUCE CORP. Income Statement For the Year Ended December 31, 2017 Sales Revenues $ 934400 Cost of Goods Sold 635950 Gross Profit 298450 Operating Expenses Bad Debt Expense $ 3360 Depreciation Expense 14348 i Insurance Expense 2200 i Other Operating Expenses 61600 i Amortization Expense 1150 i Salaries and Wages Expense 111450 Total Operating Expenses 194108 i Income From Operations 104342 Other Revenues and Gains Interest Revenue 534 Gain on Disposal of Plant Assets 480 1014 Other Expenses and Losses Interest Expense 4710 income Before Income Taxes 100646 ncome Tax Expense 13300 Net Income /(Loss) $ 87346 il Prepare a 2017 retained earnings statement. (List items that increase retained earnings first.) BLUE SPRUCE CORP Retained Earnings Statement For the Year Ending December 31, 2017 Retained Earnings, 1/1/17 19390 Add Net Income /(Loss) 87346 106736 Less : Dividends 13500 Retained Earnings, 12/31/17 69 93236 Prepare a December 31, 2017, balance sheet. (List Current Assets in order of liquidity List Property. Plant and Equipment in order of Land, Buildings and Equipment) BLUE SPRUCE CORP Balance Sheet Assets $ Liabilities and Stockholders' Equity v v v
