Question

Presented below is the adjusted trial balance of Metlock, Inc. at December 31, 2017.

	Debit		Credit
Cash	$          ?
Supplies	1,390
Accounts Receivable	2,980
Prepaid Insurance	2,060
Equipment	80,000
Accumulated Depreciation—Equipment			$20,740
Trademarks	4,020
Accounts Payable			3,200
Salaries and Wages Payable			800
Unearned Service Revenue			1,680
Bonds Payable (due 2024)			31,960
Common Stock			2,580
Additional paid-in capital			15,160
Retained Earnings			14,480
Service Revenue			29,600
Salaries and Wages Expense	14,200
Insurance Expense	2,860
Rent Expense	2,760
Interest Expense	2,960
Total	$          ?		$          ?

Additional information:

1.		Net income for the year was $6,820.
2.		No dividends were declared during 2017.

Prepare a classified balance sheet as of December 31, 2017.

Answer 1

Metlock Inc. Balance sheet as on December 31,2017
Assets
Current Assets
Cash		6970
Supplies		1390
Accounts Receivable		2980
Prepaid Insurance		2060
Total Current assets			13400
Equipment		80000
Accumulated depreciation - Equipment		20740	59260
Intanigble Assets - Trade marks			4020
Total Assets			76680
Liabilities and Share holder's Equity
Current liabilities :
Accounts payable		3200
Salaries and wages payable		800
unearned service revenue		1680
Total current liabilities			5680
Bonds payable (Due 2024)			31960
Total Liabilities			37640
Shareholder's Equity :
Common stock		2580
Additional paid in capital		15160
Retained earnings		21300
Total shareholders equity			39040
Total liabilites and share holders equity			76680
Computation of Retained Earnings :
Service revenue		29600
Less :
Salaries and wages expense	14200
Insurance expense	2860
Rent expense	2760
Interest expense	2960	22780
Net income		6820
Retained earnings - Beginning balance		14480
Add: net income		6820
Retained earnings - closing balance		21300