In: Accounting
The adjusted trial balance of Monona Inc. as of December 31, 2020, follows.
Adjusted Trial Balance | |||
---|---|---|---|
December 31, 2020 | |||
Acct. No. | Account | Debit | Credit |
100 | Cash | $18,000 | $ |
104 | Accounts receivable | 35,000 | |
105 | Allowance for doubtful accounts | 1,775 | |
106 | Inventory | 40,000 | |
108 | Prepaid insurance | 2,400 | |
150 | Land | 5,725 | |
155 | Building | 100,000 | |
156 | Equipment | 30,000 | |
162 | Accumulated depreciation | 6,250 | |
202 | Accounts payable | 37,500 | |
204 | Salaries payable | 2,250 | |
208 | Deferred service revenue | 1,000 | |
210 | Interest payable | 250 | |
240 | Note payable | 75,000 | |
302 | Common stock | 92,500 | |
304 | Retained earnings | 6,000 | |
310 | Dividends | 2,500 | |
400 | Sales revenue | 250,000 | |
402 | Service revenue | 12,500 | |
510 | Costs of goods sold | 120,000 | |
512 | Salaries expense | 115,000 | |
520 | Repair expense | 1,000 | |
526 | Insurance expense | 1,800 | |
528 | Depreciation expense | 6,600 | |
540 | Interest expense | 6,000 | |
542 | Bad debt expense |
1,000 |
|
Totals |
$485,025 |
$485,025 |
a. Prepare the income statement for the year ended
December 31, 2020.
b. Prepare the statement of stockholders’ equity for the
year ended December 31, 2020. Assume that the common stock was
issued prior to 2020.
c. Prepare the balance sheet on December 31, 2020