Answer:
Crane Company
Balance Sheet
As of December 31, 2022:
Assets
Current Assets:
Cash $6,310
Accounts receivable 3,300
Supplies 3,880
Inventory 2,940
Total current assets $16,430
Long-term Assets:
Equipment (net) 109,800
Total assets $126,230
Liabilities and Equity
Current Liabilities:
Accounts payable 4,100
Interest payable 580
Salaries and wages payable 850
Unearned service revenue 820
Total current liabilities $6,350
Long-term Liabilities:
Notes payable 31,500
Total liabilities $37,850
Equity:
Common stock 50,400
Retained Earnings 37,980
Total equity $88,380
Total liabilities + equity $126,230
Explanation:
a) Data and Calculations:
Trial Balance
Cash $6,310
Accounts receivable 3,300
Supplies 3,880
Inventory 2,940
Equipment (net) 109,800
Depreciation expense 600
Salaries & wages exp. 4,900
Accounts payable $4,100
Interest payable 580
Salaries and wages payable 850
Unearned service revenue 820
Notes payable 31,500
Common stock 50,400
Service revenue 42,100
Retained earnings 1,380
Totals $131,730 $131,730
Beginning Retained Earnings $1,380
Net income 36,600
Ending Retained earnings $37,980
Income Statement for the year ended December 31, 2022:
Service revenue $42,100
Depreciation expense 600
Salaries and wages expense 4,900
Total expenses $5,500
Net income $36,600
