The Sky Blue Corporation has the following adjusted trial balance at December 31. Accounts...

Question:

The Sky Blue Corporation has the following adjusted trial balance at December 31.

Accounts Title Debit ($) Credit ($)
Cash 1,300
Accounts receivable 2,700
Prepaid insurance 3,000
Notes receivables (long-term) 3,700
Equipment 15,500
Accumulated depreciation 4,000
Accounts payable 6,120
Salaries and wages payable 1,350
Income taxes payable 3,600
Unearned revenue 740
Common stock 3,100
Retained earnings 1,280
Dividends 370
Sales revenue 48,330
Rent revenue 370
Salaries and wages expense 23,000
Depreciation expense 2,000
Utilities expense 4,920
Insurance expense 2,100
Rent expense 6,700
Income tax expense 3,600
Total 68,890 68,890

Required:

Prepare a classified balance sheet at December 31.

What Is A Balance Sheet:

A company's Balance Sheet is one of the four core financial statements prepared under GAAP. The purpose of the Balance Sheet is to show users the book value of the assets owned, the liabilities due to creditors, and the book value of the equity in the company.

Answer and Explanation:

See below.

Item $
Assets
Cash 1,300
Accounts receivable 2,700
Prepaid insurance 3,000
Total current assets =2,700+3,000+1,300 7,000
Notes receivables (long-term) 3,700
Equipment 15,500
Accumulated depreciation -4,000
Total assets =7,000+3,700+15,500-4,000 22,200
Liabilities and equity
Accounts payable 6,120
Salaries and wages payable 1,350
Income taxes payable 3,600
Unearned revenue 740
Total liabilities =6,120+1,350+3,600+740 11,810
Common stock 3,100
Retained earnings (Note 1) 4,730
Total Liabilities and equity 22,200

Note 1: Retained earnings ending balance

Item $
Retained earnings -1,280
Dividends -370
Sales revenue 48,330
Rent revenue 370
Salaries and wages expense -23,000
Depreciation expense -2,000
Utilities expense -4,920
Insurance expense -2,100
Rent expense -6,700
Income tax expense -3,600
Ending balance =48,330+370-1,280-370-23,000-2,000-4,920-2,100-6,700-3,600 4,730

Learn more about this topic:

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Supporting Schedules on Balance Sheets: Examples & Analysis

from Accounting 201: Intermediate Accounting I

Chapter 4 / Lesson 6
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