Use the Adjusted Trial Balance for Anderson Service Company to prepare the classified balance sheet at September 30, 2016. Use the report form. You must compute the ending balance of Retained Earnings

Anderson Service Company
Adjusted Trial Balance
September 30, 2016

Balance
Account Title Debit Credit
Accounts Payable $9,000
Accounts Receivable $2,800
Accumulated Depreciation, Equipment
1,500
Cash 14,500
Common Stock 10,000
Depreciation Expense - Equipment 600
Dividends 1,500
Equipment 40,000
Notes Payable (long-term) 20,000
Office Supplies 1,500
Prepaid Rent 4,800
Rent Expense 1,200
Retained Earnings, August 31, 2016 8,100
Salaries Expense 9,000
Service Revenue 27,500
Supplies Expense 500
Unearned Revenue 1,000
Utilities Expense 700
Total $77,100 $77,100

What will be an ideal response

Net Income: Service Revenue $27,500 less Depreciation Expense, Equipment $600; Rent Expense $1,200; Salaries Expense $9,000; Supplies Expense $500; Utilities Expense $700 = $15,500.

Ending Retained Earnings: Beginning Retained Earnings (8/31/16 ) $8,100 + Net Income $15,500 - Dividends $1,500 = Ending Retained Earnings (9/30/16 ) $22,100.

Anderson Service Company
Balance Sheet
September 30, 2016

Assets
Current Assets
Cash $ 14,500
Accounts Receivable 2,800
Office Supplies 1,500
Prepaid Rent 4,800
Total Current Assets $ 23,600

Plant Assets
Equipment $40,000
Less: Accumulated
Deprecation,
Equipment (1,500 )
Total Plant Assets 38,500

Total Assets $62,100

Liabilities
Current Liabilities
Accounts Payable $ 9,000
Unearned Revenue 1,000
Total Current Liabilities $ 10,000

Long-term Liabilities
Notes Payable 20,000

Total Liabilities 30,000

Stockholders' Equity

Common Stock $ 10,000
Retained Earnings 22,100
Total Stockholders'
Equity 32,100
Total Liabilities and
Stockholders' Equity $ 62,100