Presented is an adjusted trial balance for Steelman Accounting Services, Inc. for December 31 of the current year
Steelman Accounting Services, Inc
Adjusted Trial Balance
December 31
Adjusted Trial Balance
Account Title
Debit
Credit
Accounts Receivable
$89,300
Supplies
8,000
Prepaid Rent
15,000
Equipment
250,000
Accumulated Depreciation—Equipment
$75,000
Accounts Payable
26,100
Wages Payable
6,000
Note Payable
30,000
Common Stock
90,000
Retained Earnings
52,000
Service Revenue
405,000
Wages Expense
130,000
Depreciation Expense
25,000
Interest Expense
1,800
Property Tax Expense
31,500
Rent Expense
60,000
Supplies Expense
19,500
Utility Expense
12,000
$684,100
$684,100
a. Prepare a single-step income statement.
b. Prepare a statement of stockholders' equity.
c. Prepare a classified balance sheet.
What will be an ideal response?
Answer:
a.
Steelman Accounting Services, Inc.
Statement of Net Income
For Year Ended December 31
Service Revenue
$405,000
Expenses:
Wages Expense
$130,000
Utilities Expense
12,000
Tax Expense
31,500
Supplies Expense
19,500
Rent Expense
60,000
Interest Expense
1,800
Depreciation Expense
25,000
Total Expenses
279,800
Net Income
$125,200
b.
Steelman Accounting Services, Inc.
Statement of Stockholders' Equity
For Year Ended December 31
Capital
Stock
Retained
Earnings
Total
Shareholders'
Equity
Balance, January 1
$90,000
$52,000
$142,000
Add: Net Income
125,200
125,200
Balance, December 31
$90,000
$177,200
$267,200
c.
Steelman Accounting Services, Inc.
Balance Sheet
December 31
Assets
Current Assets
Cash
$42,000
Accounts Receivable
89,300
Supplies
8,000
Prepaid Rent
15,000
Total Current Assets
154,300
Property and Equipment
Equipment
$250,000
Less: Accumulated Depreciation
75,000
175,000
Total Assets
$329,300
Liabilities and Stockholders' Equity
Current liabilities:
Accounts Payable
$26,100
Wages Payable
6,000
Notes Payable
30,000
Total Current Liabilities
62,100
Stockholders' Equity
Capital Stock
$90,000
Retained Earnings
177,200
267,200
Total Liabilities and Stockholders' Equity
$329,300
You might also like to view...
The principle of substitution applies to what property characteristics?
A. Use B. Income C. Structural design D. All of the above
Which of the following statements is FALSE?
A) When the CEO is also chairman of the board, the nominating letter offering a seat to a new director comes from her. This process merely serves to reinforce the sense that the outside directors owe their positions to the CEO and work for the CEO rather than for the shareholders. B) Over time, most of the independent directors will have been nominated by the CEO. Even though they have no business ties to the firm, they are still likely to be friends or at least acquaintances of the CEO. C) Researchers have found the surprisingly robust result that larger boards are associated with greater firm value and performance. D) The CEO can be expected to stack the board with directors who are less likely to challenge her.