sedugenwileypluscomedugenltimainuni Kimmel Accounting 6e Hel

s://edugen.wileyplus.com/edugen/lti/main.uni Kimmel, Accounting, 6e Help I System Announcements Exercise 2-5 These items are taken from the financial statements of Waterway Industries Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense $120,612 14,364 3,648 13,498 93,936 69,768 889 6,042 2,964 68,400 45,600 51,984 10,830 106,704 21,341 4,104 Common stock Retained earnings (January 1, 2017) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation-equipment Interest payable Service revenue

Solution

Balance sheet

Assets

current assets

income statement

accounts receivables

14364

service revenue

16758

prepaid insurance

3648

less expenses

cash

13498

insurance expense

889

total current assets

31510

depreciation expense

6042

long term investment

interest expense

2964

building net of accumulated depreciation

68628

total of expenses

9895

equipment net of accumulated depreciation

72595

net income

6863

land

69768

total of assets

242501

Liabilities and shareholders equity

current liabilities

account payable

10830

notes payable

15504

interest payable

4104

total of current liabilities

30438

notes payable

91200

total of liabilities

121638

shareholders equity

common stock

68400

retained earnings

52463

total of shareholders equity

120863

total of liabilities and shareholders equity

242501

Balance sheet
Assets
current assets				income statement
accounts receivables	14364			service revenue		16758
prepaid insurance	3648			less expenses
cash	13498			insurance expense	889
total current assets		31510		depreciation expense	6042
long term investment				interest expense	2964
building net of accumulated depreciation		68628		total of expenses		9895
equipment net of accumulated depreciation		72595		net income		6863
land		69768
total of assets		242501
Liabilities and shareholders equity
current liabilities
account payable	10830
notes payable	15504
interest payable	4104
total of current liabilities		30438
notes payable		91200
total of liabilities		121638
shareholders equity
common stock	68400
retained earnings	52463
total of shareholders equity		120863
total of liabilities and shareholders equity		242501