Question

The following are the trial balance and the other information related to Kevin Consulting Engineer.

KEVIN CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit
Credit
Cash       $29,500              
Accounts Receivable       55,700              
Allowance for Doubtful Accounts                   $803  
Supplies
2,300              
Prepaid Insurance       1,120              
Equipment       29,000              
Accumulated Depreciation-Equipment                   6,145  
Notes Payable                   7,200  
Common Stock
10,000  
Retained Earnings                   23,254  
Service Revenue                   115,957  
Rent Expense       10,439              
Salaries and Wages Expense       32,900              
Utilities Expenses       1,760              
Office Expense       640              
$163,359
$163,359

1.       Fees received in advance from clients $5,890, which were recorded as revenue.
2.       Services performed for clients that were not recorded by December 31, $4,928.
3.       Bad debt expense for the year is $1,544.
4.       Insurance expired during the year $437.
5.       Equipment is being depreciated at 10% per year.
6.       Kevin gave the bank a 90-day, 10% note for $7,200 on December 1, 2020.
7.       Rent of the building is $803 per month. The rent for 2020 has been paid, as has that for January 2021, and recorded as Rent Expense.
8.       Office salaries and wages earned but unpaid December 31, 2020, $2,718.

repare a classified balance sheet for 2020. (List current assets in the order of liquidity.)

KEVIN CONSULTING ENGINEER Balance Sheet                                                                       December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
Assets
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Stockholders' EquityTotal Property, Plant and Equipment
			$
		$
AddLess:
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Stockholders' EquityTotal Property, Plant and Equipment					$
AddLess:
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Stockholders' EquityTotal Property, Plant and Equipment					$
Liabilities and Owner’s Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Stockholders' EquityTotal Property, Plant and Equipment
			$
					$
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Stockholders' EquityTotal Property, Plant and Equipment
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Stockholders' EquityTotal Property, Plant and Equipment
Current AssetsCurrent LiabilitiesIntangible AssetsLiabilitiesLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Stockholders' EquityTotal Property, Plant and Equipmen

Answer 1

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