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Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 500 shares ($0.10 par
Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 500 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below:
Debit | Credit | ||
Cash | $1,500 | ||
Accounts Receivable | 2,200 | ||
Interest Receivable | 100 | ||
Prepaid insurance | 1,600 | ||
Notes receivable (long-term) | 2,800 | ||
Equipment | 15,290 | ||
Accumulated depreciation | $3,000 | ||
Accounts payable | 2,400 | ||
Accrued expenses payable | 3,920 | ||
Income taxes payable | 2,700 | ||
Unearned rent revenue | 500 | ||
Common Stock (800 shares) | 80 | ||
Additional paid-in capital | 3,620 | ||
Retained earnings | 2,000 | ||
Sales revenue | 38,500 | ||
Interest revenue | 100 | ||
Rent revenue | 800 | ||
Wages expense | 19,500 | ||
Depreciation expense | 1,800 | ||
| 380 | ||
Insurance expense | 750 | ||
Rent expense | 9,000 | ||
Income tax expense | 2,700 |
total | $57620 | $57620 |
1. Prepare a classified balance sheet in good form for the end of the current year.
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