27 Balance sheet presentation Given the following account in

27. Balance sheet presentation Given the following account information for Acme Corporation, prepare a balance sheet in report form for the company as of December 31, 2017. All accounts have normal balances. Equipment 60,000 2,400 600 Interest Expense Interest Payable Retained Earnings Dividends Land 50,400 137,320 102,000 78,000 29,400 70,000 Accumulated Depreciation -Equip.10,000 5,000 341,400 80,400 Accounts Receivable Bonds Payable Notes Payable (due in 6 months) Common Stock Prepaid Advertising Service Revenue Buildings Supplies Utilities Expense Salaries and Wages Expense 1,860 3,000 1,320 1,560 53,040 900 15,000 45,000 8,000 Income Taxes Payable Advertising Expense Salaries and Wages Payable Accumulated Depr. - Bld. Cash Depreciation Expense

Solution

Income statement Service revenue 341400 Expense Advertising expense 1560 Utilities expense 1320 Interest expense 2400 Salaries and wages expense 53040 Depreciation expense 8000 Total expense 66320 Net income 275080 Retained earnings statement Beginning retained earnings Add Net income 275080 275080 Less Dividends 50400 Ending retained earnings 224680 Balance sheet Assets Cash 45000 Accounts receivable 102000 Prepaid advertising 5000 Supplies 1860 Total current assets 153860 Equipment 60000 Acc. Depreciation equipment -10000 Land 137320 Building 80400 Acc. Depreciation building -15000 Total plant propety equipment 252720 Total assets 406580 Liabilities and shhareholders equity Liabilities Interest payable 600 Notes payable (due in 6 months) 29400 Income tax payable 3000 Salaries and wages payable 900 Total current liabilities 33900 Bonds payable 78000 Total liabilities 111900 Shareholders equity Common stock 70000 Retained earnings 224680 Total shareholders equity 294680 Total liabilities and shareholders equity 406580