Question

Adjustments Income Statement Balance Sheet Debit Credit redit Debit Credit Account Titles Cash 38400 4299 4267 85000 125000 45470 15600 679 Trial Balance Debit Credit 38,400 19,600 31,900 85,000 125,000 37,200 15,600 2,800 52,000 114,700 14,000 2,000 281,500 108,900 31,500 9,400 17,900 18,100 6,100 505,800 503,800 CRANE COMPANY Worksheet For The Month Ended September 30, 2020 Adjusted Trial Balance Debit Credit Debit 38,400 15301 4.299 27633 4,267 85,000 125,000 8270 45,470 15,600 679 52,000 114,700 14,000 2,000 283,621 108,900 31,500 9,400 17,900 20,100 12,620 52000 114700 Supplies Prepaid Insurance Land Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Service Revenue Mortgage Payable Common Stock Dividends Retained Earnings Service Revenue Salaries and Wages Expense Maintenance and Repairs Expense Advertising Expense Utilities Expenses Property Tax Expense Interest Expense Totals Insurance Expense Supplies Expense Interest Payable Depreciation Expense Property Tax Payable Totals 14000 2000 108.900 31500 9400 17900 20100 12620 2000 6520 27633 15301 27,633 15,301 27633 15301 6520 6,520 6520 8270 8,270 8270 2000 2,000 522,590 2000 238969 61845 61845 522.590 283621 270966 Net Income 251624 31997 283621 31997 Totals 283621 270966 270966

Check answers.... Current liabilities are not adding up and I don't know what amount to use for retained earnings.

Instructions: Prepare a classified balance sheet. (Note: $10,000 of the mortgage payable is due for payment in the next fiscal year.) Journalize the closing entries using the worksheet as a basis.

Answer 1

	Current Assets
	Cash				$ 38,400.00
	Supplies				$   4,299.00
	Prepaid insurance				$   4,267.00
	Total current assets					$   46,966.00
	Property, Plant and Equipment
	Land				$ 85,000.00
	Equipment			$ 125,000.00
Less:	Accumulated Depreciation			$ (45,470.00)	$ 79,530.00	$ 164,530.00
		Total assets				$ 211,496.00

Current Liabilities
Accounts Payable				$   15,600.00
Unearned service revenue				$        679.00
Interest payable				$     6,520.00
Property tax payable				$     2,000.00
Mortgage payable				$   52,000.00
Total current liabilities					$   76,799.00
Stockholder's Equity
Common stock				$ 114,700.00
Retained Earnings				$   19,997.00
Total stockholder's equity					$ 134,697.00
Total liabilities and stockholder's equity					$ 211,496.00

	Statement of Retained Earnings
	Beginning Balance			$    2,000.00
Add:	Net Income			$ 31,997.00
Less:	Dividend paid			$(14,000.00)
	Ending Balance			$ 19,997.00