Question

The following account balances appear in the 2018 adjusted trial balance of Blue Devils Corporation: Cash, $4,800; Accounts Receivable, $8,800; Supplies, $18,800; Equipment, $118,000; Accumulated Depreciation, $44,000; Accounts Payable, $25,800; Salaries Payable, $15,800; Common Stock, $58,000; and Retained Earnings. Prepare the December 31, 2018, classified balance sheet including the correct balance for retained earnings.

Answer 1

Answer:

Cash                            4,800

Accounts Receivable 8,800

Supplies                      18,800

Total Current              32,200

Equipment                  118,000

Acc Depreciation       (44,000)

Total non-current          74,000

Total assets                  106,200

Accounts Payable        25,800

Salaries Payable           15,800

Total Liabilities              41,600

Common Stock            58,000

Retained Earnins            6,400

Total Equity                 64,600

Total Assets + Liab     106,200

Explanation:

We solve this by appling the basic accounting equation:

Assets = Liabilties + Equity

First we solve for total assets.

Then we solve for the total amount of equity

and finally we clear for retained earnigns.

Cash                            4,800

Accounts Receivable 8,800

Supplies                      18,800

Total Current              32,200

Equipment                  118,000

Acc Depreciation       (44,000)

Total non-current          74,000

Total assets                  106,200

Accounts Payable        25,800

Salaries Payable           15,800

Total Liabilities              41,600

Common Stock            58,000

Retained Earnins     (64,600 - 58,000) = 6,400

Total Equity (106,200 - 41,600) = 64,600

Total Assets + Liab     106,200