Question

The following is the Frederick Company's adjusted Trial Balance. Frederick Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $85,150 Accounts Receivable 229,140 Supplies 16,955 Equipment 395,285 Accumulated Depreciation $221,260 Accounts Payable 74,235 Capital Stock 220,000 Retained Earnings 101,145 Service Revenue 893,105 Interest Income 1,500 Dividends 2,000 Rent Expense 58,500 Wages Expense 527,260 Supplies Expense 42,520 Utilities Expense 8,595 Depreciation Expense 145,840 ________ Totals $1,522,565 $1,522,565 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. Hint: you must close out temporary accounts to arrive at adjusted retained earnings balance.

Answer 1

	Frederick Company
	Balance Sheet as at 31st Dec 2018
	Assets		Amount
	Current assets
	Cash		85,150
	Accounts Receivable		229,140
	Supplies		16,955
	Non Current Assets
	Fixed Assets- Equipments	395,285
	Less:Accumulated Depreciation	221,260	174,025
	Total Assets		505,270
	Liabilities & Equity		Amount
	Current Liabilities
	Accounts payable		74,235
	Equity
	Capital stock		220,000
	Retained Earnings (Refer Note 1)		211,035
	Total Liabilities		505,270
	Notes
1	Retained Earning calculation
	Opening Retained earnings		101,145
	Add : Profit for the year (Refer Note 2)		109,890
			211,035
2	Profit /Loss for the year ended 31st Dec 2018
	Service revenue		893,105
	Interest income		1,500
	Total income		894,605
	Less:
	Rent expense		58,500
	Wage expense		527,260
	Supply expense		42,520
	Utility expense		8,595
	Depreciation		145,840
	Dividend		2,000
	Total expense		784,715
	Profit for the year		109,890