Question

Use the following to answer questions 28 - 35 TJ Corporation has provided their trial balance at the end of January. Debits Credits Cash $35.000 Accounts receivable 65,000 Supplies 1,000 Prepaid expenses 6.500 Buildings/Equipment, net 1,158,500 Accounts payable $25,000 Income tax payable 65,000 Utilities payable 1,000 Deferred revenue | 8,000 Notes payable 200,000 Common stock 500,000 Retained Earnings 325,000 Dividends 150,000 Service revenue 852,000 Salaries expense 354,000 Insurance expense 10,000 Advertising expense 125,000 Supplies expense 5,000 Depreciation expense 50,000 Rent expense Utilities expense 4.000 Totals $1.976.000 $1.976.000 Based on the data provided in the trial balance find the following: 28. $ Determine Total expenses. 29. $ _Determine Net income _Determine Beginning Retained Earnings 31. $_ _Determine Ending Retained Earnings Determine Total Stockholders' Equity 32. $ 33. $_ Determine Total Liabilities 34. $_ Determine Total Assets 35. $ At the beginning of January, the company had $400,000 in its common stock account. How much stock was issued during January? Chapter 2 Page 2-4

Answer 1

28) Total expenses: Salaries expense Insurance expense Advertising expense Supplies expense Depreciation expense Rent expense Utilities expense 354,000 10,000 125,000 5,000 50,000 12,000 4,000 560,000 IS $ 852,000 $ 29) Net income: Service Revenue Less: expenses Salaries expense Insurance expense Advertising expense Supplies expense Depreciation expense Rent expense Utilities expense Net income $ 354,000 10,000 125,000 5,000 50,000 12,000 4,000 $ $ 560,000 292,000

30) Beginning Retained Earnings = $ 325,000 31) Ending Retained Earnings: Opening Balance Add: Net income for the year Less: Dividend Ending Balance $ $ $ $ 325,000 292,000 (150,000) 467,000 32) Total Stockholder's Equity: Common Stock Retained Earnings $ $ 500,000 467,000 967.000 33) Total Liabilities: Accounts Payable Income Tax payable Utilities Payable Deferred Revenue Notes Payable 25,000 65,000 1,000 8,000 200,000 299,000 $

34) Total Assets: Cash Accounts Receivable Supplies Prepaid expenses Buildig/Equipment net 35,000 65,000 1,000 6,500 1,158,500 1,266,000 S $ $ 35) Opening balance in common stock Less:Closing balance in common stock Issued during the year $ $ $ 400,000 500,000 100,000