21. (5 points) Prepare the classified balance sheet of Alpha form. NOTE: You mus

Question

21. (5 points) Prepare the classified balance sheet of Alpha form. NOTE: You must comput e the ending balance of Retained Earnings carnings Alpha Company Trial Balance August 31, 2016 Account Title Cash Office Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense-Equipment Supplies Expense Utilities Expense Total Credit Debit $15,800 2,200 1,400 53,000 $6,900 4,500 800 4,100 4,200 16,000 27,100 800 17,700 5,100 1,100 200 700 1,000 $81,300 $81,300

Explanation / Answer

Classified balance sheet

Note:

Retained earnings is arrived at by preparing an income statement and the statement of retained earnings.

Cash dividends is closed to retained earnings, by reducing the amount of retained earnings.

Balance sheet as on August 31, 2016 Assets Equity and Liabilities Current assets Current liabilities Cash       15,800 Accounts payable             4,500 Supplies         2,200 Salaries payable                 800 Prepaid rent         1,400 Unearned revenue             4,100 Total current assets       19,400 Total current liabilities             9,400 Long-term assets Long term liabilities Equipment       53,000 Notes payable             4,200 Less accumulated depreciation         6,900 Net equipment       46,100 Total Long-term liabilities             4,200 Total long term assets       46,100 Total liabilities           13,600 Stockholders equity Common stock           16,000 Retained earnings           35,900 Total stockholders equity           51,900 Total assets       65,500 Total liabilities and stockholders equity           65,500

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