Q22E The adjusted trial balance for E... [FREE SOLUTION]

Chapter 3: Q22E (page 137)

The adjusted trial balance for Ed Bradley Co. is presented in the following worksheet for the month ended April 30, 2017.
ED BRADLEY CO.
Worksheet (PARTIAL)
For The Month Ended April 30, 2017

Adjusted Trial Balance
Income Statement

Balance Sheet
Account Titles
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
18,972
Accounts Receivable
6,920
Prepaid Rent
2,280
Equipment
18,050
Accumulated Depreciation鈥擡quipment
4,895
Notes Payable
5,700
Accounts Payable
4,472
Common Stock
34,960
Retained Earnings鈥擜pril 1, 2017
1,000
Dividends
6,650
Service Revenue
12,590
Salaries and Wages Expense
6,840
Rent Expense
3,760
Depreciation Expense
145
Interest Expense
83
Interest Payable
83
Instructions
Complete the worksheet and prepare a classified balance sheet.

Short Answer

Expert verified

Net income is $1,762 and the balance sheet total is $41,327

Step by step solution

Meaning of Balance sheet

An organization's resource, obligation, and equity ending equalizations as of the report's due date have appeared on a balance sheet. As a result, it gives a picture of the assets and liabilities of a company as well as the sum of capital contributed to it.

Completing the worksheet and preparing the balance sheet

ED BRADLEY CO. Worksheet (PARTIAL) For The Month Ended April 30, 2017
	Adjusted Trial Balance		Income Statement		Balance Sheet
Account Titles	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	18,972				18,792
Accounts Receivable	6,920				6,920
Prepaid Rent	2,280				2,280
Equipment	18,050				18,050
Accumulated Depreciation鈥擡quipment		4,895				4,895
Notes Payable		5,700				5,700
Accounts Payable		4,472				4,472
Common Stock		34,960				34,960
Retained Earnings鈥擜pril 1, 2017		1,000				1,000
Dividends	6,650				6,650
Service Revenue		12,590		12,590
Salaries and Wages Expense	6,840		6,840
Rent Expense	3,760		3,760
Depreciation Expense	145		145
Interest Expense	83		83
Interest Payable		83				83
Total	63,700	63,700	10,828	12,590	52,872	51,110
Net income/ (Net loss)			1,762			1,762
Total			$12,590	$12,590	$52,872	$52,872

Preparing classified Balance sheet

Ed Bradley Co. Balance sheet April 30,2017
Assets
Current asset
Cash $18,972
Accounts receivables 6,920
Prepaid rent2,280
Total current asset	$28,172
Property, Plant, and Equipment
Equipment $18,050
Accumulated depreciation-equipment(4,895)	13,155
Total assets	$41,327

Liabilities and stockholders鈥� equity
Liabilities
Notes payable $5,700
Accounts payable 4,472
Interest payable 83
Total current liabilities	$10,255
Stockholder鈥檚 equity
Common stock $34,960
Retained earnings(3,888)	31,072
Total liabilities and stockholders equity	$41,327

*Retained earnings calculated as ($1,000+$1,762-$6,650)

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Sep. 1	Kawabata begins practice as a dentist and invests \(20,000 cash
2	Purchases dental equipment on account from Green Jacket Co. for \)17,280
4	Pays rent for office space, \(680 for the month.
4	Employs a receptionist, Michael Bradley
5	Purchases dental supplies for cash, \)942
8	Receives cash of \(1,690 from patients for services performed
10	Pays miscellaneous office expenses, \)430.
14	Bills patients \(5,820 for services performed.
18	Pays Green Jacket Co. on account, \)3,600.
19	Withdraws \(3,000 cash from the business for personal use.
20	Receives \)980 from patients on account
25	Bills patients \(2,110 for services performed
30	Pays the following expenses in cash: salaries and wages \)1,800; miscellaneous office expenses \(85.
30	Dental supplies used during September, \)330.

SANTO DESIGN ADJUSTED TRIAL BALANCE DECEMBER 31, 2017
	Dr.	Cr.
Cash	\( 11,350
Accounts Receivable	21,500
Supplies	5,000
Prepaid Insurance	2,500
Equipment	60,000
Accumulated Depreciation鈥擡quipment		\) 35,000
Accounts Payable		5,000
Interest Payable		150
Notes Payable		5,000
Unearned Service Revenue		5,600
Salaries and Wages Payable		1,300
Common Stock		10,000
Retained Earnings		3,500
Service Revenue		61,500
Salaries and Wages Expense	11,300
Insurance Expense	850
Interest Expense	150
Depreciation Expense	7,000
Supplies Expense	3,400
Rent Expense	4,000
	\(127,050	\)127,050

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Short Answer

Step by step solution

Meaning of Balance sheet

Completing the worksheet and preparing the balance sheet

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