The December 31 2016 adjusted trial balance for the Blueboy

The December 31, 2016, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Debits Credits 51,900 Account Title Cash Accounts receivable Prepaid rent Inventory Office equipment Accumulated depreciation-office 290,000 9,000 43,000 Book dnepreciation-office $30000 Hint 222,000 equipment Print Accounts payable Note payable (due in six months) Salaries payable Interest payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense 56,000 39,000 6,800 1,300 400,000 115,000 680,000 408,000 102,000 27,000 53,000 2,600 3.600 Prev2 or 4EENext

Solution

Answer 1. Blueboy Cheese Corporation Income Statement For the Year Ended Dec 31, 2016 Sales Revenue      680,000.00 Cost of Goods Sold      408,000.00 Gross Profit      272,000.00 Expenses Salaries Expense      102,000.00 Rent Expense         27,000.00 Depreciation Expense         53,000.00 Advertising Expense           3,600.00      185,600.00 Net Operating Income         86,400.00 Other Income (expense) Interest Expense           2,600.00 Net Income         83,800.00 Blueboy Cheese Corporation Retained Earning Statement For the Year Ended Dec 31, 2016 Beginning Balance      115,000.00 Net Income         83,800.00 Ending Balance - Dec 31      198,800.00 Blueboy Cheese Corporation Balance Sheet As of Dec 31, 2016 Assets Current Assets Cash         51,900.00 Accounts Receivable      290,000.00 Prepaid Rent           9,000.00 Inventory         43,000.00 Total Current Assets      393,900.00 Property, Plant & Equipment Ofice Equipment      530,000.00 Accumulated Dep. - equipmnet    (222,000.00) Total Property, Plant & Equipment      308,000.00 Total Assets      701,900.00 Liabilities & Stockholders\' Equity Liabilities Current Liabilities Accounts Payable         56,000.00 Notes Payable (due in 6 months)         39,000.00 Salaries Payable           6,800.00 Interest Payable           1,300.00 Total Current Liabilities      103,100.00 Long Term Liabilities                        -   Total Liabilities      103,100.00 Stockholders\' Equity Common Stock      400,000.00 Retained Earnings      198,800.00 Total Stockholders\' Equity      598,800.00 Total Liabilities & Stockholders\' Equity      701,900.00 Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 31-Dec-16 Sales Revenue    680,000.00 Income Summary    680,000.00 (record the closing entry for revenues) 31-Dec-16 Income Summary    596,200.00 Cost of Goods Sold    408,000.00 Salaries Expense    102,000.00 Rent Expense      27,000.00 Depreciation Expense      53,000.00 Advertising Expense        3,600.00 Interest Expense        2,600.00 (record the closing entry for expense) 31-Dec-16 Income Summary      83,800.00 Retained Earnings      83,800.00 (Record the net income earned)