In: Accounting
Green Advertising Services
Adjusted Trial Balance
December 31, 2018
Balance
Account Title
Debit
Credit
Cash
$14,000
Accounts Receivable
15,800
Office Supplies
6,500
Land
18,400
Building
47,900
Accumulated Depreciation—Building
$36,100
Furniture
19,600
Accumulated Depreciation—Furniture
14,100
Accounts Payable
10,600
Salaries Payable
7,200
Unearned Revenue
16,000
Common Stock
30,000
Retained Earnings
31,400
Dividends
18,300
Service Revenue
49,800
Salaries Expense
28,600
Supplies Expense
8,400
Depreciation Expense—Building
2,900
Depreciation Expense—Furniture
1,300
Advertising Expense
13,500
Total
$195,200
$195,200
Requirement 3. Prepare the classified balance sheet as of December 31,2018.
Use the account form.
Begin by preparing the asset section of the balance sheet and then prepare the liabilities and stockholders' equity sections. (If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero. Abbreviation used: Accum. = Accumulated.)
Green Advertising Services |
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Balance Sheet |
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December 31, 2018 |
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Assets |
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Less: |
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Less: |
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Liabilities |
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Stockholders' Equity |
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Solution
Green Advertising Services
Balance Sheet
Green Advertising Services |
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Balance Sheet |
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at December 31, 2018 |
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Assets |
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Current Assets |
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Cash |
$14,000 |
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Accounts Receivable |
$15,800 |
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Office Supplies |
$6,500 |
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total current assets |
$36,300 |
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Property, Plant and Equipment |
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Land |
$18,400 |
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Buildings |
$47,900 |
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Less: accumulated depreciation -buildings |
($36,100) |
$11,800 |
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Furniture |
$19,600 |
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Less: Accumulated Depreciation - Furniture |
($14,100) |
$5,500 |
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Property, Plant and Equipment |
$35,700 |
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Total Assets |
$72,000 |
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Liabilities and Stockholders' Equity |
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Liabilities |
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Accounts Payable |
$10,600 |
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Salaries Payable |
$7,200 |
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Unearned Revenue |
$16,000 |
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Liabilities |
$33,800 |
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Stockholders' Equity |
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Common Stock |
$30,000 |
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Retained Earnings |
$8,200 |
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Stockholders' Equity |
$38,200 |
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Liabilities and Stockholders' Equity |
$72,000 |
Computations:
Service revenue $49,800
Less: expenses:
Salaries expense $28,600
Supplies expense $8,400
Depreciation expense - buildings $2,900
Depreciation expense – Furniture $1,300
Adverting expense $13,500
Total expenses $54,700
Net Loss = ($4,900)
Beginning balance = $31,400
Less: net loss ($4,900)
Less: dividends paid ($18,300)
Ending balance = $8,200
Note: all the accounts balances are as given in adjusted trial balance. Since, the adjusted trial balance provides account balances after the adjustments, no other changes are needed for the account balances.