Question

The adjusted trial balance for Mosley's Mosaic Tiles at December 31, 2021 is as follows: Credit $5,200 Mosley Mosaic Tiles Adjusted Trial Balance December 31, 2021 Debit Cash $31,400 Accounts receivable 26,500 Prepaid insurance 2,000 Prepaid rent 5,000 Supplies 3,330 Equipment 17.500 Accumulated depreciation equipment Furniture 25,000 Accumulated depreciation-furniture Accounts payable Salary payable Unearned revenue Mortgage payable (due in 2040) M. Mosaic, drawings 15,000 M. Mosaic, capital Service revenue Salary expense 24,387 Depreciation expense 4,500 Rent expense 5,500 Insurance expense Supplies expense Advertising expense 800 $163,817 4,250 8,400 12,200 6,700 35,000 58,567 33,500 2.200 W 700 $163,817 Instructions Use the above adjusted trial balance to prepare a classified balance sheet as at December 31, 2021.

Answer 1

Mossley Mosaic Tiles

Balance sheet of December 31,2021

ASSETS
Current Assets
Cash	31400
Accounts Receivable	26500
Prepaid Insurance	2000
Prepaid Rent	5000
Supplies	3330
Total Current Asset	68230
Fixed Asset
Equipment	17500
Accumulated Depreciation-Equipment	(5200)
Furniture	25000
Accumulated Depreciation-Furniture	(4250)
Total Non-current assets	33050
Total Assets	101280
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable	8400
Salary Payable	12200
Unearned revenue	6700
Total current liabilities	27300
Long-term Liabilities
Mortgage Payable	35000
Total Non-current liabilities	35000
Total Liabilities	62300
Shareholder's Equity
M.Mosaic Capital	58567
M.Mosaic Drawings	(15000)
Retained Earnings/Profit&Loss	(4587)
Total Equity	38980
Total Liabilities and Equity	101280

Profit and Loss Statement

Service revenue		33500
Salary Expense	24387
Depreciation expense	4500
Rent expense	5500
Insurance expense	2200
Supplies expense	700
Advertising expense	800	(38087)
Net Loss		(4587)