Question

The Sky Blue Corporation has the following adjusted trial balance at December 31. Prepare a classified Balance sheet at December 31.. (Amounts to be deducted by a minus sign.)

Answer 1

SKY BLUE CORPORATION Balance Sheet At December 31 Amount Amount Assets Current Assets: Cash Accounts receivable Prepaid insurance $1,240 S2,100 S2,400 Total Current Assets Notes receivable Equipment S5,740 S3,100 S12,500 Less: Accumulated depreciation S2,800S9,700 Total Assets $18,540 Liabilities Current Liabilities: Accounts payable Accrued liabilities payable Salaries and wages payable Income taxes pavable Unearned rent revenue Total Current Liabilities Amount Amount S5,520 S1,050 $3,000 S620 S10.190 Stock holders' Equity: Common stock Retained earnings Total Stock holders' E S2,500 $5,850 S8,350 Total Liabilities and Stockholders' E $18,540

Workings Income statement Particulars Sales reverence Rent revenue Amount Amount S42,930 S310 Less: Salaries and wages payable |S21,800 depreciation expense Utilities expense Insurance expense Rent expense Income tax expense S1,400 $4,320 S1.500 S6,100 S3,000 S38,120 Net income $5,120 Retained earning statement Amount Opening retained earings $1.040 $5,120 S6,160 S310 S5.850 Particulars Add: Net income Less: Dividend Closing retained earnings