llowing information 2008 Unearned Service Revenue Wages Payable Wages Expense Se
ID: 2391470 • Letter: L
Question
llowing information 2008 Unearned Service Revenue Wages Payable Wages Expense Service Revenue Rent Expense Retained Earnings, 1/1/2008 Prepaid Rent Notes Payable, Due 5/1/2020 Notes Payable, Due 5/1/2009 Land Interest Revenue Interest Payable Interest Expense Equipment Dividends Depreciation Expense Equipment Common Stock Cash Accumulated Depreciation Equipmentnn Accounts Receivable Accounts Payable 17,000 37,000 20,000 30,000 15,000 55,000 40,000 17,500 37. NET INCOME for the year is: 38. TOTAL CURRENT ASSETS reported on the December 31, 2008 balance sheet is: 39. TOTAL PROPERTY, PLANT, AND EQUIPMENT reported on the December 31, 2008 balance sheet is: 40. TOTAL ASSETS reported on the December 31, 2008 balance sheet is: 41. TOTAL CURRENT LIABILITIES reported on the December 31, 2008 balance sheet is 42. TOTAL LONG-TERM LIABILITIES reported on the December 31, 2008 balance sheet is: 43. TOTAL LIABILITIES reported on the December 31, 2008 balance sheet is 44. After all the necessary closing entries are made, the ending balance in RETAINED EARNINGS is: 45. TOTAL OWNERS EQUITY reported on the December 31, 2008 balance sheet is:Explanation / Answer
Net income for the year
Particulars
Amount ($)
Amount ($)
Revenue:
Service revenue
37,000.00
Interest revenue
3,000.00
(A): Total revenue
40,000.00
Expenditures:
Wages expense
17,000.00
Rent expense
3,000.00
Interest expense
1,000.00
Depreciation
3,500.00
24,500.00
Net income for the year
15,500.00
Total current assets:
Currents assets
Amount ($)
Amount ($)
Prepaid rent
5,500.00
Cash
40,000.00
Accounts receivable
17,500.00
Total current assets:
63,000.00
Property, plant and equipment
Amount ($)
Equipment
15,000.00
Less: Accumulated depreciation
5,000.00
Net property, plant and equipment
10,000.00
Total assets reported
Total current assets
63,000.00
Non-current assets:
Property, plant and equipment net of depreciation
10,000.00
Land
30,000.00
Total assets reported
103,000.00
Total current liabilities reported
Unearned service revenue
1,000.00
Wages payable
2,000.00
Notes payable due 5/1/2009 (as it is short term)
1,000.00
Interest payable
1,000.00
Accounts payable
3,000.00
Toatl current liabilities reported
8,000.00
Total long term liabilities reported
Notes payable
20,000.00
Total long term liabilities reported
20,000.00
Total liabilities reported
Current liabilities total
8,000.00
Long term liabilities
20,000.00
Total liabilities reported
28,000.00
Ending balance in retained earnings as on 31/12/2008
Opening balance in retained earnings
6,000.00
Add: Net income for the year
15,500.00
21,500.00
Less: Dividend paid
1,500.00
Ending balance in retained earnings as on 31/12/2008
20,000.00
Total owners' equity as on 31/12/2008
Common stock
55,000.00
Add: Ending retained earnings as on 31/12/2008
20,000.00
Total owners' equity as on 31/12/2008
75,000.00
Net income for the year
Particulars
Amount ($)
Amount ($)
Revenue:
Service revenue
37,000.00
Interest revenue
3,000.00
(A): Total revenue
40,000.00
Expenditures:
Wages expense
17,000.00
Rent expense
3,000.00
Interest expense
1,000.00
Depreciation
3,500.00
24,500.00
Net income for the year
15,500.00
Total current assets:
Currents assets
Amount ($)
Amount ($)
Prepaid rent
5,500.00
Cash
40,000.00
Accounts receivable
17,500.00
Total current assets:
63,000.00
Property, plant and equipment
Amount ($)
Equipment
15,000.00
Less: Accumulated depreciation
5,000.00
Net property, plant and equipment
10,000.00
Total assets reported
Total current assets
63,000.00
Non-current assets:
Property, plant and equipment net of depreciation
10,000.00
Land
30,000.00
Total assets reported
103,000.00
Total current liabilities reported
Unearned service revenue
1,000.00
Wages payable
2,000.00
Notes payable due 5/1/2009 (as it is short term)
1,000.00
Interest payable
1,000.00
Accounts payable
3,000.00
Toatl current liabilities reported
8,000.00
Total long term liabilities reported
Notes payable
20,000.00
Total long term liabilities reported
20,000.00
Total liabilities reported
Current liabilities total
8,000.00
Long term liabilities
20,000.00
Total liabilities reported
28,000.00
Ending balance in retained earnings as on 31/12/2008
Opening balance in retained earnings
6,000.00
Add: Net income for the year
15,500.00
21,500.00
Less: Dividend paid
1,500.00
Ending balance in retained earnings as on 31/12/2008
20,000.00
Total owners' equity as on 31/12/2008
Common stock
55,000.00
Add: Ending retained earnings as on 31/12/2008
20,000.00
Total owners' equity as on 31/12/2008
75,000.00
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