Question

Problem 2 Page 2 Chapter 05 Group work - STU.xlsx Presented below is the adjusted trial balance of Kelly Corporation at December 31, 2020. Kelly Corporation Trial Balance December 31, 2020 Debit Credit $ $ $ 1.200 1.000 48,000 $ 4.000 $ 950 Cash Supplies Prepaid Insurance Equipment Accumulated Depreciation - Equipment Trademarks Accounts Payable Salaries and Wages Payable Unearned Service Revenue Bonds Payable (due 2027) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Rent Expense Interest Expense Total S $ $ $ 10,000 500 2,000 9,000 10,000 25,000 10,000 S $ $ $ S 9,000 1.400 1,200 900 Additional information: 1. Net loss for the year was $2,500** 2. No dividends were declared during 2020. Prepare a classified balance sheet as of December 31, 2020. Calculation of cash balance: Total assets Less: Trademark Equipment, net Supplies Prepaid insurance Cash balance at December 31, 2017

Answer 1

Calculation of Cash Balance
Total Assets				$ 54,000.00
Less:
Trade Mark				$      950.00
Equipment (Net)		($ 48000 - $ 4000)		$ 44,000.00
Supplies				$   1,200.00
Prepaid Insurance				$   1,000.00
Cash Balance at Dec 31, 2017				$   6,850.00

Workings:

We know, Total Assets = Total Liabilities + Stockholder's Equity
Computation of Total Liabilities and Stockholder's Equity
Accounts Payable				$ 10,000.00
Salaries and Wages Payable				$      500.00
Unearned Revenue				$   2,000.00
Bonds Payable				$   9,000.00
Common Stock				$ 10,000.00
Retained Earnings			($ 25000 - $ 2500)	$ 22,500.00
				$ 54,000.00
Therefore, Total Assets =				$ 54,000.00

	Balance Sheet
	Assets
	Current Assets
	Cash				$   6,850.00
	Supplies				$   1,200.00
	Prepaid Insurance				$   1,000.00
	Total Current Assets					$   9,050.00
	Long-term Assets
	Equipment				$ 48,000.00
Less:	Accu. Depreciation				$   4,000.00	$ 44,000.00
	Trademark					$       950.00
						$ 44,950.00
	Total Assets					$ 54,000.00
	Liabilities and Stockholder's Equity
	Current Liabilities
	Accounts Payable				$ 10,000.00
	Salaries and Wages Payable				$      500.00
	Unearned Revenue				$   2,000.00
	Total Current Liabilities					$ 12,500.00
	Long-term Liabilities
	Bonds Payable					$   9,000.00
	Total Liabilities					$ 21,500.00
	Stockholder's Equity
	Common Stock				$ 10,000.00
	Retained Earnings				$ 22,500.00
	Total Stockholder's Equity					$ 32,500.00
	Total Liabilities and Stockholder's Equity					$ 54,000.00