-Your answer is partially corr These items are taken from the financial statemen

Question

-Your answer is partially corr These items are taken from the financial statements of Sheridan Company at December 31,2017 Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2017) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation-equipment interest payable Service revenue $ 95,220 11.340 2,880 10,656 74,160 55,080 702 4,770 2,340 54000 36,000 41040 8,550 84.240 16,848 3.240 13,230 assets in order of liquidity and Prepare a classified balance sheet. Assume that $ 12.240 of the note payable will be paid in 2018. List current property plant and equipment in order of land buildings and equipment)

Explanation / Answer

Calculation of retained Earning at December 31, 2017 Particulars Amount Amount Service Revenue 13230 expenses : insurance exp 702 depreciation exp 4770 interest expenses 2340 total expenses -7812 net income 5418 closing retained earning = beginning retained earning+net income-dividend paid closing Retained earning = 36000+5418-0 closing retained earning = 41418 total Stockeholder's Equity total stockholder's equity = Common stock +Retained earning total stockholder's equity = 54000+41418 total stockholder's equity = 95418 Total Laibilities & Stockholder's Equity Total Laibilities & Stockholder's Equity = Total labilities +total stockholder's equity total laibility = account payable+interest payable+notes payable Total Laibility = 8550+3240+84240 total Laibility = 96030 total stockholder's equity = 95418 total laibilities and stockholder's equity = 96030+95418 = 191448

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