33:010:272 Lecture Notes - Lecture 4: Retained Earnings, Trial Balance, Income Statement

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byzantiumeel129

28 Nov 2016

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Worksheet starts from trial balance: see book for steps. Co(cid:373)pa(cid:374)y"s i(cid:374) their first period do(cid:374)"t have retai(cid:374)ed ear(cid:374)i(cid:374)gs. Difference between debits and credits for income statement and balance sheet tell you net income/loss. Income statement, retained earnings, and balance sheet are order of financial statements: this can all come directly off worksheet. Closing the books: permanent accounts: balance rolls forward (cash, assets, liabilities, stockholders equity, temporary accounts: only 12 months, clear accounts (revenue, expenses, dividends, closing entires recognize transfer of net income and dividends to retained earnings. Dividends go directly to retained earnings: revenue and expenses go to income summary then to retained earnings, dr rev, cr income summary, dr income summary, cr retained earnings. Classified balance sheet: presents snapshot at point in time. Companies group assets and liabilities and group similar ones together: categorized assets (current, long term, etc. , liabilities (current, long term, stockholders equity)

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PLEASE answer number 2 (worksheet) I am really struggling with it.

Below is the unadjusted trial balance for Walton Anvils as of December 31, 2016, and the data for the adjustments. There is also an Excel Template for this problem that you may download and use (or you may use your own).

Walton Anvils
Unadjusted Trial Balance
December 31, 2016
	Balance
Account Title	Debt	Credit
Cash	$ 16,900.00
Accounts Receivable	17,500
Prepaid Rent	2,500
Office Supplies	1,900
Equipment	23,000
Accumulated Depreciation - Equipment		$ 7,000.00
Accounts Payable		6,200.00
Salaries Payable
Unearned Revenue		5,600.00
Common Stock		28,000.00
Retained Earnings		1,600.00
Dividends	4,500
Service Revenue		20,800.00
Salaries Expense	2,900
Rent Expense
Depreciation Expense - Equipment
Supplies Expense
Total	$ 69,200.00	$ 69,200.00

Adjustment Data

a. Unearned revenue still unearned at December 31, 2016	$1,800
b. Prepaid rent still in force at December 31, 2016	$2,300
c. Office supplies used	$1,400
d. Depreciation	$380
e. Accrued Salaries Expense at December 31, 2016	$210

Requirements

1.Open T-accounts using the balances in the unadjusted trial balance.

2.Complete the worksheet for the year ended December 31, 2016.

3.Prepare the adjusting entries and post to the T-accounts.

4.Prepare the adjusted trial balance.

5.Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.

6.Prepare the closing entries and post to the T-accounts.

7.Prepare a post-closing trial balance.

8.Calculate the current ratio for the company.

brownmammoth184

The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits Credits Cash 33,500 Accounts receivable 10,000 Equipment 15,000 Accumulated depreciation 4,500 Salaries payable 6,000 Common stock 41,000 Retained earnings 7,000 Total 58,500 58,500 The following is a summary of the transactions for the year: Sales of services, $102,000, of which $30,600 was on credit. Collected on accounts receivable, $22,000. Issued shares of common stock in exchange for $7,500 in cash. Paid salaries, $37,000 (of which $6,000 was for salaries payable). Paid miscellaneous expenses, $20,000. Purchased equipment for $10,000 in cash. Paid $2,425 in cash dividends to shareholders. Accrued salaries at year-end amounted to $740. Depreciation for the year on the equipment is $1,500. Required: 2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed. 3. Post the transactions, adjusting and closing entries into the appropriate t-accounts. 4. Prepare an unadjusted trial balance. 6. Prepare an adjusted trial balance. 7-a. Prepare an income statement for 2018. 7-b. Prepare a balance sheet as of December 31, 2018. 9. Prepare a post-closing trial balance.

bronzecat728

The general ledger of the Karlin Company, aconsulting company, at January 1, 2013, contained the following account balances:

Account Title	Debits	Credits
Cash	30,000
Accounts receivable	15,000
Equipment	20,000
Accumulated depreciation		6,000
Salaries payable		9,000
Common stock		40,500
Retained earnings		9,500

Total	65,000	65,000

The following is a summary of the transactions for theyear:

a.	Sales of services, $100,000, of which $30,000was on credit.
b.	Collected on accounts receivable, $27,300.
c.	Issued shares of common stock in exchange for$10,000 in cash.
d.	Paid salaries, $50,000 (of which $9,000 wasfor salaries payable).
e.	Paid miscellaneous expenses, $24,000.
f.	Purchased equipment for $15,000 in cash.
g.	Paid $2,500 in cash dividends to shareholders.

1.	Accrued salaries at year-end amounted to$1,000.
2.	Depreciation for the year on the equipment is$2,000.

Required:

1.	Prepare a general journal entry for each ofthe summary transactions listed above.

2.	Prepare the adjusting journal entries.

	3.	Prepare the closing entries.

4.	Post the opening balances, transactions,adjusting and closing entries into the appropriatet-accounts.

5.	Prepare an unadjusted trial balance.

6.	Prepare an adjusted trial balance.

7.	Prepare an income statement for 2013.

Prepare a balance sheet as of December 31,2013.

Prepare a post-closing trial balance.

33:010:272 Lecture Notes - Lecture 4: Retained Earnings, Trial Balance, Income Statement

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