Question

The ABC Corporation is in its first year of operations, and has the following adjusted trial balance, as of December 31, 2018.    

ABC Corporation is a t-shirt manufacturer that leases a multi-use space for all of its needs.

Accounts Payable	$      1,200
Accounts Receivable	$      3,500
Accumulated Depreciation - Machinery and Equipment	$    (1,625)
Accumulated Depreciation - Office Equipment	$    (1,400)
Cash	$    10,400
Common Stock	$   10,000
Cost of Goods Sold	$    60,000
Depreciation Expense	$      3,025
Interest Expense	$          640
Interest Payable	$          640
Inventory	$      7,500
Machinery and Equipment	$    13,000
Marketing Expense	$      3,000
Notes Payable	$      8,000
Office Equipment	$      4,200
Retained Earnings	$             -
Salaries Expense	$    22,000
Salaries Payable	$          600
Sales Revenue	$ 125,000
Supplies	$      1,000
Supplies Expense	$      8,200
Utilities Expense	$    12,000

               

Prepare a classified balance sheet as of December 31, 2019 for ABC Corporation.             

Comment on the financial results for this company.        

ABC Corporation
Balance Sheet
As of December 31, 2018
Assets
Current Assets:
Total Current assets
Long-Term Assets:
Total Assets
Liabilities and Stockholders Equity
Current Liabilities:
Long-Term Liabilities:
Total Liabilities:
Stockholder's Equity:
Total Liabilities and Stockholder's Equity

Answer 1

ABC Corporation
Balance Sheet
As of December 31, 2018
Assets
Current Assets:
Cash	$10,400
Accounts Receivable	$3,500
Inventory	$7,500
Supplies	$1,000
Total Current assets		$22,400
Long-Term Assets:
Machinery and Equipment	$13,000
Accumulated Depreciation - Machinery and Equipment	-$1,625	$11,375
Office Equipment	$4,200
Accumulated Depreciation - Office Equipment	-$1,400	$2,800
Total Assets		$36,575
Liabilities and Stockholders Equity
Current Liabilities:
Accounts Payable	$1,200
Interest Payable	$640
Salaries Payable	$600	$2,440
Long-Term Liabilities:
Notes Payable		$8,000
Total Liabilities:		$10,440
Stockholder's Equity:
Common Stock		$10,000
Retained Earnings		$16,135
Total Liabilities and Stockholder's Equity		$36,575
Working - Retained Earnings
$125,000-($60,000+$3,025+$640+$3,000+$22,000+$8,200+$12,000)