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ABC Company Trial Balance Year Ending December 31, 2014 Cash $ 34,400 Accounts R

ID: 2446313 • Letter: A

Question

ABC Company

Trial Balance

Year Ending December 31, 2014

Cash

$      34,400

Accounts Receivable

         36,600

Merchandise Inventory (Beginning)

         62,400

Land

         92,000

Buildings

       197,000

Accumulated Depreciation-Buildings

$      54,000

Equipment

         83,500

Accumulated Depreciation-Equipment

         42,400

Notes Payable

         50,000

Accounts Payable

         37,500

Common Stock

       200,000

Retained Earnings

         67,800

Dividends

         10,000

Sales

       886,100

Sales Discounts

           4,600

Purchases

       725,100

Purchase Discounts

         16,000

Freight-in

         12,400

Salaries Expense

         69,800

Utilities Expense

           9,400

Repair Expense

           5,900

Gas and Oil Expense

           7,200

Insurance Expense

           3,500

$ 1,353,800

$ 1,353,800

Adjustment data:

Merchandise inventory on hand at December 31, 2014 is $90,000.

Salaries are 80% selling and 20% administrative.

Utilities expense, repair expense, and insurance expense are 100% administrative.

$15,000 of the notes payable are payable next year.

Gas and oil expense is a selling expense.

The beginning balance of accounts receivable is $34,750.

The amount of total assets at the beginning of the year is $469,225.

Prepare a classified balance sheet as of December 31, 2014.

Cash

$      34,400

Accounts Receivable

         36,600

Merchandise Inventory (Beginning)

         62,400

Land

         92,000

Buildings

       197,000

Accumulated Depreciation-Buildings

$      54,000

Equipment

         83,500

Accumulated Depreciation-Equipment

         42,400

Notes Payable

         50,000

Accounts Payable

         37,500

Common Stock

       200,000

Retained Earnings

         67,800

Dividends

         10,000

Sales

       886,100

Sales Discounts

           4,600

Purchases

       725,100

Purchase Discounts

         16,000

Freight-in

         12,400

Salaries Expense

         69,800

Utilities Expense

           9,400

Repair Expense

           5,900

Gas and Oil Expense

           7,200

Insurance Expense

           3,500

$ 1,353,800

$ 1,353,800

Explanation / Answer

Classified balance sheet Assets: cash 34400 accounts receivable 36600 merchandise inventory 90000 land 92000 building 197000 less: accumulated depreciation 54000 143000 equipment 83500 less: accumulated depreciation 42400 41100 Total Assets 437100 liabilities: Notes payable 50000 accounts payable(37500+39960) 77460 127460 shareholders equity 200000 retained earnings(Balancing figure) 109640 437100

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