Question

The adjusted trial balance for Rowdy Profits Corporation reports that its equipment had cost $160,000. For the current year, the company has recorded $19,200 of depreciation, which brings the total depreciation to date to $96,000. Balance Sheet Income Statement Assets Liabilities Stockholders Equity Revenues Expenses Required Using the headings shown above, indicate the location and amounts that would be used to report the three tems on the company's balance sheet and income statement. (Any deduction should be entered with a minus sign) Balance Sheet Income Statement

Answer 1

Solution:

Balance Sheet
Assets:
Equipment	160000
Less: accumulated depreciation	-96000
Total assets	64000
Liabilities
Stockholders' Equity

Balance Sheet
Revenue:
Total revenue	0
Expenses:
Depreciation expense	19200
Total Expense	19200