Question

Chapter 2 HW P2-35A

The accounts of Cascade Consulting, Inc., follow with their normal balances at December 31, 2010. The accounts are listed in no particular order.

Prepare the company’s trial balance at December 31, 2010, listing accounts in the proper order. List the largest expense first, the second largest expense next, and so on.

	Cascade Consulting Inc. Trial Balance Dec 31, 2010
Account	Debit	Credit
Cash	$8,300
Accounts Receivable	$6,500
Land	$24,000
Building	$110,000
Accounts Payable		$3,700
Notes Payable		$76,000
Common Stock		$65,000
Retained Earnings		$9,700
Dividends	$13,500
Service Revenues		$83,000
Salary Expense	$51,000
Rent Expense	$12,800
Utilities Expense	$6,400
Supplies Expense	$3,200
Insurance Expense	$1,700
Total	$237,400	$237,400

Prepare the financial statements: income statement, statement of retained earnings, and balance sheet. The retained earnings balance of $9,700 is the beginning balance for the year; it has not been updated for the current year’s income or loss.

	Cascade Consulting Inc. Income Statement For the year ended Dec 31 2010
Revenue (A)	Amount $	Amount $
Service Revenues		$83,000
Expenses (B)
Salary Expense	$51,000
Rent Expense	$12,800
Utilities Expense	$6,400
Supplies Expense	$3,200
Insurance Expense	$1,700
		$75,100
Net Income (A)-(B)		$7,900

                               

	Cascade Consulting Inc. Statement of Retained Earnings For the year ended Dec 31,2010
Particulars	Amount $	Amount $
Retained Earnings at the beginning of year	$9,700
Add: Net income for the current year	$7,900
Subtotal		$17,600
Less: Dividends		$13,500
Retained Earnings at the end of the year		$4,100

	Balance	Sheet
Cash	$8300	Accounts Payable	$3,700
Accounts Receivable	$6,500	Notes Payable	$76,000
Supplies	$400	Total Liabilities	$79,700
Land	$24,000
Building	$110,000
		Common Stock	$65,000
		Retained Earnings	$9,700
		Total Stockholders Equity	$74,700
Total	$149,200	Total Liabilities & Stockholders’ Equity	$154,400

I cannot figure out why the total and the total liabilities and stockholders Equity do not match up

Answer 1

Cascade Consulting Inc. Trial Balance Dec 31, 2010
Account	Debit	Credit
Building	$                                           110,000.00
Salary Expense	$                                             51,000.00
Land	$                                             24,000.00
Dividends	$                                             13,500.00
Rent Expense	$                                             12,800.00
Cash	$                                               8,300.00
Accounts Receivable	$                                               6,500.00
Utilities Expense	$                                               6,400.00
Supplies Expense	$                                               3,200.00
Insurance Expense	$                                               1,700.00
Service Revenues		$                                                 83,000.00
Notes Payable		$                                                 76,000.00
Common Stock		$                                                 65,000.00
Retained Earnings		$                                                   9,700.00
Accounts Payable		$                                                   3,700.00
Total	$                                           237,400.00	$                                               237,400.00
	Cascade Consulting Inc.
	Income Statement
	For the year ended Dec 31, 2010
Revenue (A)	Amount $	Amount $
Service Revenues		$                                                 83,000.00
Expenses (B)
Salary Expense	51000
Rent Expense	12800
Utilities Expense	6400
Supplies Expense	3200
Insurance Expense	1700
		$                                                 75,100.00
Net Income (A)-(B)		$                                                   7,900.00
	Cascade Consulting Inc.
	Statement of Retained Earnings
	For the year ended Dec 31, 2010
Particulars	Amount $	Amount $
Retained Earnings at the beginning of year	9700
Add: Net income for the current year	7900
Subtotal		$                                                 17,600.00
Less: Dividends		$                                                 13,500.00
Retained Earnings at the end of the year		$                                                   4,100.00
Balance Sheet For the year ended Dec 31,2010
Assets	Amount	Liabilities	Amount
Cash	$                                               8,300.00	Accounts Payable	$      3,700.00
Accounts Receivable	$                                               6,500.00	Notes Payable	$     76,000.00
Land	$                                             24,000.00	Total Liabilities	$     79,700.00
Building	$                                           110,000.00
		Common Stock	$     65,000.00
		Retained Earnings	$      4,100.00
		Total Stockholders Equity	$     69,100.00
Total Assets Note: Net retained earnings have to be considered year end 2010 $ 4100 after allocating dividends	$                                           148,800.00	Total Liabilities & Stockholders’ Equity	$   148,800.00