The following are the trial balance and the other information related to Perez Consulting Engineer. Credit $750 PEREZ CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2020 Debit Cash $29,500 Accounts Receivable 49,600 Allowance for Doubtful Accounts Supplies 1,960 Prepaid Insurance 1,100 Equipment 25,000 Accumulated Depreciation-Equipment Notes Payable Common Stock Retained Earnings Service Revenue Rent Expense 9,750 Salaries and Wages Expense 30,500 Utilities Expenses 1,080 Office Expense 720 $149,210 6,250 7,200 10,000 25,010 100,000 $149,210 1. Fees received in advance from clients $6,000, which were recorded as revenue. 2. Services performed for clients that were not recorded by December 31, $4,900. 3. Bad debt expense for the year is $1,430. 4. Insurance expired during the year $480. 5. Equipment is being depreciated at 10% per year. 6. Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2020. 7. Rent of the building is $750 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2020, $2,510. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2020. automatically indented when amount is entered. Do not indent manually. If no entry is required, sel titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit 1. Service Revenue 6000 Unearned Service Reve 6000 2. Accounts Receivable 4900 Service Revenue 4900 3. Bad Debt Expense 1430 Allowance for Doubtful 1430 4. Insurance Expense 480 Prepaid Insurance 480 5. Depreciation Expense 2500 Accumulated Depreciati 2500 6. Interest Expense 60 Interest Payable 60 7. Prepaid Rent 750 Rent Expense 750 8. Salaries and Wages Expen 2510 Salaries and Wages Pay 2510 Prepare an income statement for 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or PEREZ CONSULTING ENGINEER Income Statement For the Year Ended December 31, 2020 Revenues Service Revenue 98900 Expenses Rent Expense $L 9000 Salaries and Wages Exp 33010 Utilities Expenses 1080 Office Expense 720 Bad Debt Expense 1430 Insurance Expense 480 Depreciation Expense 2500 Interest Expense 60 Total Expenses 48280 mm X Net Income / (Loss) 50620 Your answer is partially correct. Try again. Prepare a retained earnings statement for 2020. Perez paid a $17,000 cash dividend during the year. (recorded in Retained Earnings.) ( capital first.) PEREZ CONSULTING ENGINEER Statement of Retained Earnings For the Year Ended December 31, 2020 x Retained Earnings, January 1 25010 Add v Net Income / (Loss) 50620 Less Dividends 17000 x Retained Earnings, December 31 58630 Your answer is partially correct. Try again. Prepare a classified balance sheet for 2020. (List current assets in the order of liquidity.) PEREZ CONSULTING ENGINEER Balance Sheet December 31, 2020 Assets Current Assets Cash 12500 Accounts Receivable 54500 Less V Tallowance for Doubtful Acc 2180 52320 Supplies 1960 Prepaid Insurance 620 Prepaid Rent 750 Total Current Assets 68150 TEquipment 25000 Less V Accumulated Depreciation- 8750 16250 Total Assets 84400 Liabilities and Owner's Equity Current Liabilities Notes Payable 7200 Interest Payable 240 Salaries and Wages Pay 2510 Unearned Service Reve 6000 15950 Stockholders' Equity Common Stock 10000 Retained Earnings 58450 Total Stockholders' Equity 68450 B Total Liabilities and Owner's Equity 84400
