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Balance Sheet Debits Credits Cash ? Office Supplies 2640 Prepaid Insurance 2,200

ID: 2357727 • Letter: B

Question

Balance Sheet




Debits
Credits
Cash
?

Office Supplies
2640

Prepaid Insurance
2,200

Equipment
105,600

Accumulated Depreciation-Equipment

8,800
Trademarks
2,090

Accounts Payable

22,000
Wages Payable

1,100
Unearned Service Revenue

4,400
Bonds Payable due 2017

19,800
Common Stock

22,000
Retained Earnings

55,000
Service Revenue

22,000
Wages Expense
19,800

Insurance Expense
3,080

Rent Expense
2,640

Interest Expense
1,980
_______
Totals
?
?





Additional information:
1. Net loss for the year was $5,500.
2. No dividends were declared during 2010.


Instructions
Prepare a classified balance sheet for Smith Company as of December 31, 2010.

Explanation / Answer

Smith Company Balance Sheet December 31, 2010 ASSETS Current Assets: Cash 15,070 Prepaid Insurance 2,200 Office Supplies 2,640 Total Current Assets 19,910 Long Term Assets: Equipment 105,600 Less: Acc Dep 8,800 96,800 Total Long Term Assets 96,800 Intangible Asset: Trademarks 2,090 Total Intangible Asset 2,090 TOTAL ASSETS 118,800 LIABILITIES AND STOCKHOLDERS EQUITY Current Liabilities: Accounts Payable 22,000 Unearned Service Revenue 4,400 Wages Payable 1,100 Total Current Liabilities 27,500 Long TermLiabilities: Bonds Payable 19,800 Total Long Term Liabilities 19,800 Stockholder's Equity: Common Stock 22,000 Retained Earnings 49,500 Total Stockholder's Equity 71,500 TOTAL Liabilities and Stockholders Equity 118,800

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