The adjusted trial balance of Bradey Irrigation System at December 31, 2018, fol
ID: 2334846 • Letter: T
Question
The adjusted trial balance of Bradey Irrigation System at December 31, 2018, follows: EEB (Click the icon to view the adjusted trial balance.) Read the requirements Bradey Irrigation Systenm Statement of Retained Earnings Year Ended December 31, 2018 Retained Earnings, January 1, 2018 Dividends Retained Earnings, December 31, 2018 Requirement 3. Prepare the company's classified balance sheet in report form at December 3 1, 2018. (If a Bradey Irrigation System Choose from any list or enter any number in the input fields and then continue to the next questionExplanation / Answer
Answer:
1
Bradey irrigation System
Statement of Retained Earning
Year Ended December 31, 2018
Retained earning, January 1, 2018
$ 18,000
Net income for the year
42,500
$ 60,500
Devidend
(3,000)
Retained earning,, December 31, 2018
$ 57,500
Working notes for the above answer is as under
Bradey irrigation System
Income Statement
Year Ended December 31, 2018
Revenues:
Service Revenue
$ 68,000
Expenses:
Insurance Expense
$ 1,200
Salary Expense
$ 16,700
Interest Expense
2,000
Depreciation Expense—Equipment
2,800
Depreciation Expense—Building
1,600
Supplies Expense
1,200
Total Expenses
25,500
Net Income
$ 42,500
__________________________________________________
2
Bradey irrigation System
Balance Sheet (classied)
Assets
Amount ($)
Amount ($)
Current Assets
Cash
15000
Accounts Receivable
49200
Office Supplies
17700
Prepaid insurance
4500
Total current Assets
86400
Property, Plant and Equipment
Equipment
30000
Building
56900
Total
86900
Less: Accumulated Depreciation
-31600
55300
Total Assets
$ 141,700
Liabilities and Stockholders Equity
Current Liabilities
Accounts Payable
41300
Interest Payable
2000
Salary Payable
3300
Unearned revenue
1400
Total Current Liabilities
48000
Long term Liabelity
Notes Payable
14200
Stockholders Equity
Common Stock
22000
Retained Earnings
57500
Total Stockholders Equity
79500
Total Liabilities and Stockholders Equity
$ 141,700
Bradey irrigation System
Statement of Retained Earning
Year Ended December 31, 2018
Retained earning, January 1, 2018
$ 18,000
Net income for the year
42,500
$ 60,500
Devidend
(3,000)
Retained earning,, December 31, 2018
$ 57,500
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