Question

The adjusted trial balance of Ryan Company appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31:

                1.            an income statement.

                2.            a retained earnings statement.

                3.            a balance sheet.

(You need to calculate the amount of cash)

Trial Balance Debit 285,000 $ 45,000 16,500 178,500 Cash Accounts Receivable Allowance for Doubtful Accounts Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equipment Notes Payable Accounts Payable Interest Payable Unearned Service Revenue Salaries & Wage Payable Common Stock Retained Earnings Dividends Service Revenue Salaries & Wage Expense Supplies Expense Rent Expense Insurance Expense Interest Expense Depreciation Expense Bad Debt Expense Credit $ . $ 4,800 S $ - $ $ 24,000 $ 150,000 $ 75,000 $ 1,500 $ 24,000 $ 18,000 $ 300,000 $ 125,000 $ $ 318,000 $ $ $ $ $ $ $ $ $ $ $ 50,000 - 138,000 45,000 27,000 15,000 1,500 12,000 4,800 S $ $ $

Answer 1

	Note:- as per the detail's given in the question we need to calculate trade receivable balance and closing retained earning balance and no need to calculate the cash balance as the same is given in the question
		Ryan Company
		Income Statement
		For the year ended December 31
		Particulars	Amount $
		Revenue
		Service revenue	318,000
		Total Revenue	318,000
		Expenses
		Salaries and wages expenses	138,000
		Rent expenses	27,000
		Depreciation expenses	12,000
		Supplies expenses	45,000
		Bad debt expenses	4,800
		Interest expenses	1,500
		Insurance expenses	15,000
		Misc. expenses
		Total Expenses	243,300
		Net Income for the current year	74,700
		Ryan Company
		Retained earning statement
		At December 31
		Particulars	Amount $
		Opening balance	125,000
		Add;- Profit for the year	74,700
		Less:- Dividend paid	(50,000)
		Closing retained earning	149,700
		Balance sheet
		Liabilities	$	Assets	$
		Common stock	300,000	Equipment	178,500
		Retained earning	149,700	Less:- Accumulated depreciation	(24,000)
				Building net of depreciation	154,500
		Notes Payable	150,000	Accounts receivable (balancing figure)	222,000
		Accounts Payable	75,000	Less:- Allowances for doubtful debt	(4,800)
		Interest payable	1,500	Accounts receivable net	217,200
		Salaries and wages payable	18,000	Cash	285,000
		Unearned service revenue	24,000	Supplies	45,000
				Prepaid insurance	16,500
		Total	718,200	Total	718,200	-