Question

Use the Adjusted Trial Balance to answer the questions below

Oscar Company Adjusted Trial Balance December 31, 2017 DEBIT 12,000 2,200 CREDIT 100 500 1,500 100 2,000 180 4,500 T 2,000 500 450 Cash Accounts Receivable Allowance for Doubtful Accounts Short term Note Receivable Interest Receivable Supplies Inventory Prepaid Expenses Equipment Accumulated Depreciation Copyrights Accounts Payable Interest Payable Unearned Revenue Long Term Note Payable Common Stock Paid-in-Capital In Excess of Par - CS Retained Earnings (1/1/17) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad debt expense Depreciation Expense Amortization Expense Wages Expense Rent Expense Office Expense Supplies Expense Selling Expense Interest Expense Interest Revenue Income Tax Expense Totals 180 70 1,250 5,000 2,000 6,500 2,000 40,230 T I 500 150 23,400 180 70 150 4,700 1.600 400 T 780 300 480 58,240 5 8,240

Answer 1

Answer 1:

1 Gross profit $16,180 Income from operations $8,250 Ending Retained Earnings $12,430 Total stockholders'equity $19,430 Total current assets $18,380 Total Liabilities and stockholders'equity $21,380

Working:

$40,230 $500 $150 $650 $39,580 $23,400 $16,180 Income Statement Sales Less Sales Return Sales discounts Net Sales Cost of Goods sold Gross Profit Operating expenses Wages Expense Depreciation expense Amortization expense Bad debt expense Rent expense Office expense Supplies expense Selling exp Total operating expense Income from operations Other: Interest revenue Interest Expense Income before tax Income tax exp Net Income $4,700 $70 $150 $180 $1,600 $400 $50 $780 $7,930 $8,250 460 300 $8,410 4801 $7,930

Ending retained earnings = Beginning retained earnings + Net Income - Dividend = 6500 + 7930 - 2000 = $12,430

Total stockholders'equity = Common stock + Paid in capital + ending retained earnings = 5000 + 2000 + 12430 = $19430

Total current assets = 12000 + (2200 - 100) + 500 + 1500 + 100 + 2000 + 180 = $18,380

Total Liabilities and stockholders'equity = (450 + 180 + 70 + 1250) + 19430 = $21,380