Question

Bramble Company ended its fiscal year on July 31, 2019. The company's adjusted trial balance as of the end of its fiscal year is shown below. Bramble Company Adjusted Trial Balance July 31, 2019 Account Titles Debit Credit 101 Cash $10,800 112 Accounts Receivable 9,400 157 Equipment 16,500 158 Accumulated Depreciation-Equip. $7,200 4,000 201 208 Accounts Payable Unearned Rent Revenue 2,400 20,600 Common Stock 311 320 332 25,000 Retained Earnings Dividends 16,500 400 Service Revenue 64,500 429 Rent Revenue 7,000 711 Depreciation Expense 6,500 726 Salaries and Wages Expense 56,000 732 Utilities Expense 15.000 $130,700 $130,700

Prepare an income statement for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Prepare a retained earnings statement for the year.
Prepare a classified balance sheet at July 31. (List Current Assets in order of liquidity.)

Answer 1

a) Income statement

Revenue
Service revenue	64500
rent revenue	7000
Total revenue	71500
Expense
Depreciation expense	6500
Salaries and wages expense	56000
Utilities expense	15000
Total expense	77500
Net income (loss)	-6000

Retained earnings statement

Beginning retained earnings	25000
Less: Net (loss)	-6000
Less: Dividend	-16500
Ending retained earnings	2500

Balance sheet

Assets
Current assets
Cash	10800
Account receivable	9400
Total Current assets		20200
Property, plant and equipment
Equipment	16500
Less: Accumulated depreciation-equipment	-7200	9300
Total assets		29500
Liabilities and stockholder's equity
Current liabilities
Account payable	4000
Unearned rent revenue	2400
Total current liabilities		6400
Stockholder's equity
Common stock	20600
Retained earnings	2500
Total Stockholder's equity		23100
Total liabilities and stockholder's equity		29500