Question

Presented below is the adjusted trial balance of Crane Corporation at December 31, 2020.

	Debit		Credit
Cash	$          ?
Supplies	1,300
Prepaid Insurance	1,100
Equipment	48,100
Accumulated Depreciation-Equipment			$  4,100
Trademarks	1,050
Accounts Payable			10,100
Salaries and Wages Payable			600
Unearned Service Revenue			2,100
Bonds Payable (due 2027)			9,100
Common Stock			10,100
Retained Earnings			25,100
Service Revenue			10,100
Salaries and Wages Expense	9,100
Insurance Expense	1,500
Rent Expense	1,300
Interest Expense	1,000
Total	$          ?		$          ?

Additional information:

1.		Net loss for the year was $2,800.
2.		No dividends were declared during 2020.

Prepare a classified balance sheet as of December 31, 2020

Answer 1

Crane Corporation
BALANCE SHEET
At December 31, 2020
	$	$
Assets
Current Assets
Cash	6,850.00
Supplies	1,300.00
Prepaid Insurance	1,100.00
Total current assets		9,250.00
Property, plant and equipment
Equipment	48,100.00
Less: Accumulated Depreciation-Equipment	(4,100.00)	44,000.00
Trademarks		1,050.00
Total assets		54,300.00
Liabilities and stockholders’ equity
Current liabilities
Accounts Payable	10,100.00
Salaries and Wages Payable	600.00
Unearned Service Revenue	2,100.00
Total Current liabilities		12,800.00
Long-term liabilities
Bonds Payable (due 2027)		9,100.00
Total liabilities		21,900.00
Stockholders’ equity
Common stock	10,100.00
Retained earnings	22,300.00
Total stockholders’ equity		32,400.00
Total liabilities and stockholders’ equity		54,300.00
Explanation
Calculation of cash
Total liabilities and stockholders’ equity	54,300.00
Less:
Supplies	1,300.00
Prepaid Insurance	1,100.00
Equipment (Net)	44,000.00
Trademarks	1,050.00
Cash	6,850.00
Calculation of Net Income
		$
Revenues:
Service revenue		10,100.00
Less Expenses:
Salaries and Wages Expense	9,100.00
Insurance Expense	1,500.00
Rent Expenses	1,300.00
Interest Expense	1,000.00
Total Expenses		12,900.00
Net Income (Loss)		(2,800.00)
Retained Earnings Statement
	$
Beginning Retained earnings	25,100.00
Add: Net income (Loss)	(2,800.00)
Ending Retained earnings	22,300.00