Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 3: Q22E (page 137)

The adjusted trial balance for Ed Bradley Co. is presented in the following worksheet for the month ended April 30, 2017.

ED BRADLEY CO.

Worksheet (PARTIAL)

For The Month Ended April 30, 2017



Adjusted Trial Balance
Income Statement

Balance Sheet

Account Titles

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Cash

18,972

Accounts Receivable

6,920

Prepaid Rent

2,280

Equipment

18,050

Accumulated Depreciation—Equipment

4,895

Notes Payable

5,700

Accounts Payable

4,472

Common Stock

34,960

Retained Earnings—April 1, 2017

1,000

Dividends

6,650

Service Revenue

12,590

Salaries and Wages Expense

6,840

Rent Expense

3,760

Depreciation Expense

145

Interest Expense

83

Interest Payable

83

Instructions

Complete the worksheet and prepare a classified balance sheet.

Short Answer

Expert verified

Net income is $1,762 and the balance sheet total is $41,327

Step by step solution

01

Meaning of Balance sheet

An organization's resource, obligation, and equity ending equalizations as of the report's due date have appeared on a balance sheet. As a result, it gives a picture of the assets and liabilities of a company as well as the sum of capital contributed to it.

02

Completing the worksheet and preparing the balance sheet

ED BRADLEY CO.

Worksheet (PARTIAL)

For The Month Ended April 30, 2017


Adjusted Trial Balance
Income Statement
Balance Sheet

Account Titles

Dr.

Cr.

Dr.

Cr.

Dr.

Cr.

Cash

18,972

18,792

Accounts Receivable

6,920

6,920

Prepaid Rent

2,280

2,280

Equipment

18,050

18,050

Accumulated Depreciation—Equipment

4,895

4,895

Notes Payable

5,700

5,700

Accounts Payable

4,472

4,472

Common Stock

34,960

34,960

Retained Earnings—April 1, 2017

1,000

1,000

Dividends

6,650

6,650

Service Revenue

12,590

12,590

Salaries and Wages Expense

6,840

6,840

Rent Expense

3,760

3,760

Depreciation Expense

145

145

Interest Expense

83

83

Interest Payable

83

83

Total

63,700

63,700

10,828

12,590

52,872

51,110

Net income/ (Net loss)

1,762

1,762

Total

$12,590

$12,590

$52,872

$52,872

Preparing classified Balance sheet

Ed Bradley Co.

Balance sheet

April 30,2017


Assets


Current asset


Cash $18,972


Accounts receivables 6,920


Prepaid rent2,280


Total current asset

$28,172

Property, Plant, and Equipment


Equipment $18,050


Accumulated depreciation-equipment(4,895)

13,155

Total assets

$41,327


Liabilities and stockholders’ equity


Liabilities


Notes payable $5,700


Accounts payable 4,472


Interest payable 83


Total current liabilities

$10,255

Stockholder’s equity


Common stock $34,960


Retained earnings(3,888)

31,072

Total liabilities and stockholders equity

$41,327

*Retained earnings calculated as ($1,000+$1,762-$6,650)

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What are the characteristics of high-quality information in a company’s first IFRS financial statements?

E3-1 (L02) (Transaction Analysis—Service Company) Beverly Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.April 2 Invested \(32,000 cash and equipment valued at \)14,000 in the business.2 Hired an administrative assistant at a salary of \(290 per week payable monthly.3 Purchased supplies on account \)700. (Debit an asset account.)7 Paid office rent of \(600 for the month.11 Completed a tax assignment and billed client \)1,100 for services rendered. (Use Service Revenue account.)12 Received \(3,200 advance on a management consulting engagement.17 Received cash of \)2,300 for services completed for Ferengi Co.21 Paid insurance expense \(110.30 Paid administrative assistant \)1,160 for the month.30 A count of supplies indicated that \(120 of supplies had been used.30 Purchased a new computer for \)6,100 with personal funds. (The computer will be used exclusively for business purposes.)InstructionsJournalize the transactions in the general journal. (Omit explanations.)

E3-8 (L03) EXCEL (Adjusting Entries) Andy Roddick is the new owner of Ace Computer Services. At the end of August2017, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information relatedto unrecorded expenses that the business incurred during August.1. At August 31, Roddick owed his employees \(1,900 in wages that will be paid on September 1.2. At the end of the month, he had not yet received the month’s utility bill. Based on past experience, he estimated the billwould be approximately \)600.3. On August 1, Roddick borrowed \(30,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%.4. A telephone bill in the amount of \)117 covering August charges is unpaid at August 31.InstructionsPrepare the adjusting journal entries as of August 31, 2017, suggested by the information above.

The financial statements of (M&S) are presented in Appendix E. The company's complete annual report, including the notes to the financial statements, is available online.

Instructions

Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

(a) What were M&S’s total assets on 28 March 2015? On 29 March 2014?

(b) How much cash (and cash equivalents) did M&S have on 28 March 2015?

(c) What were M&S’s selling and marketing expenses in 2015? In 2014?

(d) What were M&S’s revenues in 2015? In 2014?

(e) Using M&S’s financial statements and related notes, identify items that may result in adjusting entries for prepayments and accruals.

(f) What were the amounts of M&S’s depreciation and amortization expense in 2014 and 2015?

BE3-11 (L04) Side Kicks has year-end account balances of Sales Revenue \(808,900, Interest Revenue \)13,500, Cost of Goods Sold \(556,200, Administrative Expenses \)189,000, Income Tax Expense \(35,100, and Dividends \)18,900. Prepare the year-end closing entries
See all solutions

Recommended explanations on Business Studies Textbooks

Change Management

Read Explanation

Influences On Business

Read Explanation

Corporate Finance

Read Explanation

Business Development

Read Explanation

Intermediate Accounting

Read Explanation

Financial Performance

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free