Question

Tunstall, Inc. Unadjusted Trial Balance for the Year Ended December 31 Credit Debit 42,000 11,600 900 800 19,000 9,200 8,300 3,000 Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation Other assets Accounts payable Wages payable Income taxes payable Notes payable, long-term Common stock (5,000 shares outstanding) Additional paid-in capital Retained earnings Service revenue Wages expense Remaining expenses (not detailed; excludes income tax) Income tax expense Totals 17,000 400 19,000 6,000 61,360 16,200 17,160 115,960 115,960 Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $800. c. Depreciation expense for the current year, $3,700. d. Wages earned by employees not yet paid on December 31, $640. e. Income tax expense, $5,540.

I need help particularly with the wages expense as for all spots it says 640 is incorrect. Also calculating retained earnings, net income, and earnings per share and anything else I may have missed

Answer 1

$61,360 TUNSTALL INC. Statement of Retained Earnings For The Year Ended December 31 Retained Earnings - Beginning Balance Add: Net Income $16,720 Less: Dividends Net Increase in Retained Earnings Retained Earnings - Ending Balance $6,000 [Ref: Income Statement] [$900 - $300] TUNSTALL INC. Income Statement For The Year Ended December 31 Service Revenue Expenses: Supplies Expense $600 Insurance Expense $800 Depreciation Expense $3,700 Wages Expense $16,840 Other Expenses $17,160 Total Expenses excluding taxes Income Before Income Taxes Income Taxes Net Income $0 $16,720 $22,720 ($16200 + $640] NOTE: $39,100 $22,260 $5,540 $16,720 Prepaid insurance is expired fully and so it has no balance to report on balance sheet. Updated Accumulated depreciation = $9,200 + $3,700 = $12,900 to report on balance sheet. Earnings Per Share (EPS) $3.72 [--> Net Income / # of Shares outstanding = $16720 / 4500 = $3.72]

Assets Current Assets: Cash Accounts Receivable Supplies Total Current Assets $9,180 TUNSTALL INC. Classified Balance Sheet December 31 Liabilities & Shareholders' Equity Current Liabilities: $42,000 Accounts Payable $3,000 $11,600 Wages Payable $640 $300 Income Taxes Payable $5,540 $53,900 Total Current Liabilities Long-Term Liabilities: Note Payable Total Liabilities $19,000 Shareholders' Equity: $12,900 Common Stock $400 $6,100 Additional Paid in Capital $19,000 $8,300 Retained Earnings $22,720 Total Shareholders' Equity $68,300 Total Liabilities & Shareholders' equity $17,000 $26,180 Plant, Property & Equipment: Service Trucks Less: Accumulated Depreciation Plant, Property & Equipment, Net Other Assets [Ref: Statement of Ret. Earnings] $42,120 $68,300 Total Assets