Question

Insurance expense	$10,000
Sales returns and allowances	22,400
Bad debt expense	6,000
Accounts payable	81,000
Accounts receivable	108,590
Allowance for doubtful accounts	8,500
Accumulated depreciation – equipment	27,740
Depreciation expense	1,200
Interest revenue	2,100
Cash	80,970
Common stock (10,000 shares outstanding)	100,000
Cost of goods sold	598,550
Dividends declared	18,000
Equipment	139,450
General expenses	114,250
Dividends payable	2,000
Sales discounts	23,000
Interest expense	5,600
Paid-in capital in excess of par	110,000
Marketable Securities	12,000
Merchandise inventory	154,250
Prepaid insurance	11,225
Salaries expense	42,100
Retained earnings	?
Dividend Revenue	10,000
Salaries Payable	12,350
Sales	983,900
Selling expenses	139,210

Needed

Adjusted trial balance

A classified balance sheet

Post close trial balance

Answer 1

Adjusted trial balance

Account name	Debit	Credit
Insurance expense	$10,000
Sales returns and allowances	22,400
Bad debt expense	6,000
Accounts payable		81000
Accounts receivable	108,590
Allowance for doubtful accounts		8500
Accumulated depreciation – equipment		27740
Depreciation expense	1,200
Interest revenue		2100
Cash	80,970
Common stock (10,000 shares outstanding)		100000
Cost of goods sold	598,550
Dividends declared	18000
Equipment	139,450
General expenses	114,250
Dividends payable		2000
Sales discounts	23,000
Interest expense	5,600
Paid-in capital in excess of par		110000
Marketable Securities	12,000
Merchandise inventory	154,250
Prepaid insurance	11,225
Salaries expense	42,100
Retained earnings		149205
Dividend Revenue		10000
Salaries Payable		12350
Sales		983900
Selling expenses	139,210
Total	$1486795	$1486795

Note : calculations of retained earnings balance

Total debit balance = $1486795

Total credit balance excluding retained earnings = $1337590

Therefore,

Retained earnings = total debit balance - total credit balance excluding retained earnings

= $1486795 - $1337590

= $149205

Post closing trial balance:

Account name	Debit	Credit
Insurance expense	$10,000
Sales returns and allowances	$22,400
Bad debt expense	$6,000
Accounts payable		$81,000
Accounts receivable	$1,08,590
Allowance for doubtful accounts		$8,500
Accumulated depreciation – equipment		$27,740
Depreciation expense	$1,200
Interest revenue		$2,100
Cash	$80,970
Common stock (10,000 shares outstanding)		$1,00,000
Cost of goods sold	$5,98,550
Dividends declared	$18,000
Equipment	$1,39,450
General expenses	$1,14,250
Dividends payable		$2,000
Sales discounts	$23,000
Interest expense	$5,600
Paid-in capital in excess of par		$1,10,000
Marketable Securities	$12,000
Merchandise inventory	$1,54,250
Prepaid insurance	$11,225
Salaries expense	$42,100
Retained earnings		$1,49,205
Dividend Revenue		$10,000
Salaries Payable		$12,350
Sales		$9,83,900
Selling expenses	$1,39,210
Total	$14,86,795	$14,86,795

Classified balance sheet:

Assets	Amount	Amount
Current assets
Accounts receivable	108590
(-)Allowance for doubtful accounts	-8500
Net accounts receivables		100090
Cash		80970
Marketable Securities		12000
Merchandise inventory		154250
Prepaid insurance		11225
Total current assets		358535
Noncurrent assets
Equipment	139450
(-) Accumulated depreciation - equipment	-27740
Net equipment		111710
Total noncurrent assets		111710
Total assets		470245
Liabilities and Shareholders equity
Liabilities
Current liabilities
Dividends payable		2000
Salaries Payable		12350
Accounts payable		81000
Total Current liabilities		95350
Non Current liabilities		0
Total liabilities		95350
sharehoders equity
Common stock (10,000 shares outstanding)		100000
Paid-in capital in excess of par		110000
Retained earnings		164895
Total sharehoders equity		374895
Total liabilities and sharehoders equity		470245

Note 1:

Income statement:

	Amount	Amount
Incomes
Sales	983900
(-)Sales returns and allowances	-22,400
Sales discounts	-23,000
Net sales		9,38,500
Interest revenue		2100
Dividend Revenue		10000
Total income		9,50,600
(-) Total expenses
Cost of goods sold	5,98,550
Insurance expense	10,000
Bad debt expense	6,000
Depreciation expense	1,200
General expenses	1,14,250
Interest expense	5,600
Salaries expense	42,100
Selling expenses	1,39,210
Total expenses	9,16,910	916910
Net income		33,690

Statement retained earnings:

	Amount
Opening retained earnings	149205
(+) current year profits	33,690
(-) dividends declared	-18000
Closing retained earnings	1,64,895