Question

Presented below is the adjusted trial balance of Martinez Corporation at December 31, 2017.

	Debit		Credit
Cash	$          ?
Supplies	1,350
Prepaid Insurance	1,150
Equipment	48,150
Accumulated Depreciation-Equipment			$  4,150
Trademarks	1,100
Accounts Payable			10,150
Salaries and Wages Payable			650
Unearned Service Revenue			2,150
Bonds Payable (due 2024)			9,150
Common Stock			10,150
Retained Earnings			25,150
Service Revenue			10,150
Salaries and Wages Expense	9,150
Insurance Expense	1,550
Rent Expense	1,350
Interest Expense	1,050
Total	$          ?		$          ?

Additional information:

1.		Net loss for the year was $2,950.
2.		No dividends were declared during 2017.

Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity.)

Answer 1

Martinez Corporation
Balance Sheet
As at December 31, 2017
Assets
Current assets
Cash ($54,450-$47,600)	$6,850
Supplies	$    1,350
Prepaid insurance	$    1,150
Total current assets		$    9,350
Fixed Assets
Equipment	$ 48,150
Less: Accumulated depreciation	$ (4,150)
Equipment (net)	$ 44,000
Trade mark	$    1,100
Total fixed assets		$ 45,100
Total assets		$ 54,450
Liabilities and stockholders' equity
Liabilities
Current liabilities
Accounts payable	$ 10,150
Salaries and wages payable	$        650
Unearned service revenue	$    2,150
Total current liabilities		$ 12,950
Non- current liabilities
Bonds payable		$    9,150
Total liabilities		$ 22,100
Stokholders' equity
Common stock	$ 10,150
Retained earnings ($25,150-$2,950)	$ 22,200
Total stockholders' equity		$ 32,350
Total liabilities and stockholders' equity		$ 54,450