Question

The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,000 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 877,105 Interest Income 5,500 Dividends 7,000 Rent Expense 59,900 Wages Expense 529,000 Supplies Expense 40,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,526,565 $1,526,565 Use this information to prepare the Balance Sheet for the fiscal year. There are additional lines in the formatted Balance Sheet form to allow for authorized alternate presentations.

Answer 1

Income statement

Service revenue	877,105
Interest income	5,500
Total revenues	882,605
Less: Expenses
Rent expense	- 59,900
Wages expense	- 529,000
Supplies expense	- 40,000
Utilities expense	- 8,000
Depreciation expense	- 150,000
Net income	$95,705

Retained earnings statement

Retained earnings, beginning	127,145
Net income	95,705
Dividends	- 7,000
Retained earnings, ending	$215,850

Balance sheet

Assets	$	Liabilities and equity	$
Current assets		Current liabilities
Cash	88,665	Accounts payable	72,555
Accounts receivable	232,000	Stockholders' equity
Supplies	17,000	Capital stock	220,000
Total current assets	337,665	Retained earnings	215,850
Equipment	395,000	Total stockholders' equity	435,850
Accumulated depreciation	(224,260)
Net property, plant and equipment	170,740
Total assets	508,405	Total liabilities and stockholders' equity	508,405