EAL ADVE ISING TRIAL BALANCE DECEMBER 31 2017 Unadjusted Adj

EAL ADVE ISING TRIAL BALANCE DECEMBER 31, 2017 Unadjusted Adjusted Cr. Dr. $13,340 19,321 7,047 2,626 61,800 Cr. Dr. $13,340 16,050 9,680 4,150 61,800 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense $23,830 7,200 2,010 0 5,460 $28,410 7,200 2,010 504 3,450 866 21,740 15,376 21,740 15,376 13,800 13,800 57,294 62,575 10,576 1,524 504 4,580 2,633 4,380 9,710 4,380 $132,910 $132,910 $142,131 $142,131

Solution

Firstly we need to calculate the closing balance of retained earnings after adjusting net income and dividends which is shown as follows:-

Net Income = Total Revenue - Total Expenses

Total Expenses = Salaries and Wages exp+Insurance exp+Interest exp+Dep exp+Supplies exp+Rent exp

= $10,576+$1,524+$504+$4,580+$2,633+$4,380 = $24,197

Net Income = Service Revenue - Total exp.

= $62,575 - $24,197 = $38,378

Retained Earnings Bal = Beg. Bal+Net Income-Dividends

= $15,376+$38,378-$13,800 = $39,954

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Balance Sheet

December 31, 2017 (Amounts in $)

2) Salaries and Wages Payable Ending Balance = Beg. Bal+Salaries and Wages exp for 2017-Cash Paid

$866 = Beg. Bal+$10,576-$10,980

Beg. Bal = $866-$10,576+$10,980 = $1,270

Therefore the balance of salaries and wages payable in Dec 31, 2016 was $1,270.

Assets
Current Assets
Cash	13,340
Accounts Receivable	19,321
Supplies	7,047
Prepaid Insurance	2,626
Total Current Assets		42,334
Equipment	61,800
Less: Accumulated Depreciation-Equipment	(28,410)	33,390
Total Assets		75,724
Liabilities and Stockholder\'s Equity
Current Liabilities
Notes Payable	7,200
Accounts Payable	2,010
Unearned Service Revenue	3,450
Salaries and Wages Payable	866
Interest Payable	504
Total Current Liabilities		14,030
Stockholder\'s Equity
Common Stock	21,740
Retained Earnings	39,954
Total Stockholder\'s Equity		61,694
Total Liabilities and Stockholder\'s Equity		75,724