Question 4 (25 points) Lock Joint Inc. Adjusted Trial Balance December 31, 2018
ID: 2407284 • Letter: Q
Question
Question 4 (25 points)
Lock Joint Inc.
Adjusted Trial Balance
December 31, 2018
Account Title
DEBIT
Cash
$78,450
Accounts Receivable
150,000
Supplies
30,255
Stock Investment
172,000
Equipment
295,285
CREDIT
Accumulated Depreciation
$228,760
Accounts Payable
44,555
Wages Payable
35,000
Capital Stock
346,145
Service Revenue
895,105
Interest Income
1,500
DEBIT
Rent Expense
64,500
Wages Expense
542,260
Supplies Expense
42,520
Depreciation Expense
167,095
Drawings
8,700
_________
Totals
DEBIT
$1,551,065
CREDIT
$1,551,065
What are the dollar values that will appear in Lock Joint Inc.'s year end financial statements for the following line items:
1. Total Current Assets _______________________
2. Total Long-Term Investments _________________________
3. Total Assets _______________________________
4. Total Liabilities ______________________________
5. Total Equity (hint: Capital + Net Income – Drawings) ______________________
Explanation / Answer
Total current assets ;
Total long term investments = stock investment i.e., $172,000
Total assets : Total current assets + Total long term investments + fixed assets
Here fixed assets = equipment - accumulated depreciation
= 295285 - 228760
= $66,525
Total liabilities = Accounts payable + wagepayable
=45,555+35000
= $79,555
Total equity = capital + net income - drawings
Computation of net income :
Total expense (B). $816,375
Net income = A-B = 896605-816375 = $80,230
Total equity = 346145 + 80230 - 8700 = 417675
For verification :
Total assets = total liabilities + total equity
497230 = 79555 + 417675
497230 = 497230
( Total assets = total current assets + long term investments+ fixed assets )
Particulars Amount ($) Cash 78,450 Accounts receivables 150,000 Inventory - Supplies 30,255 Total current assets 2,58,705Related Questions
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