Question

The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,000 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 877,105 Interest Income 5,500 Dividends 7,000 Rent Expense 59,900 Wages Expense 529,000 Supplies Expense 40,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,526,565 $1,526,565 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.

Answer 1

EASTON COMPANY

income statement of Easton company December 31,2018

sales revenue		$877,105
interest income		5500
total revenue		$882,605
less operating expenses
rent expense	59900
wage expenses	529000
supplies expense	40000
utilities expense	8000
depreciation exp	150,000
total expense	$786,900	$786,900
net income		$95,705

statement of retained earnings of Easton company

retained earnings opening	$127,145
add net income (current)	95,705
subtotal	$222,850
less dividends	7000
retained earnings closing	$215,850

EASTON COMPANY

balance sheet as on December 31,2018

current assets
cash	$88,665
accounts receivable	232,000
supplies	17000
total current assets	$337,665	$337,665
fixed assets
equipment	$395000
accumulated depreciation	(224,260)	$170,740
total assets		508,405
liabilities and shareholders equity
current liabilities
accounts payable		$72,555
common shareholders equity
capital stock		220,000
retained earnings		215,850
total liabilities and equity		$508,405