Question

Exercise 4-14 a-b (Part Level Submission) The adjusted trial balance for Martell Bowling Alley at December 31, 2019, contains the following accounts. Buildings Accounts Receivable Prepaid Insurance Cash Equipment Land Insurance Expense Depreciation Expense Interest Expense Debit $128,800 14,520 4,680 18,040 62,400 67,000 780 7,360 2,600 $306,180 Common Stock Retained Earnings Accumulated Depreciation-Buildings Accounts Payable Notes Payable Accumulated Depreciation-Equipment Interest Payable Service Revenue Credit $90,000 25,000 42,600 12,300 97,780 18,720 2,600 17,180 $281,180

Answer 1

Amount $ Amount $ Martell Bowling Alley Balance Sheet as at 31st Deceber 2019 :- Assets Current Assets :- Cash Accounts Receivable Prepaid Insurance Total current assets (A) 18,040 14,520 4,680 37,240 Non-Current Assets Property, Plant and Equipment: Land Buildings Less: Accumulated Depreciation - Buildings Equipment Less: Accumulated Depreciation - Equipment Total Non-Current Assets Total Assets (A+B) 67,000 1,28,800 (42,600) 62,400 (18,720) 1,96,880 2,34,120 Amount $ Amount $ Liabilities and Shareholders equity Current Liabilities :- Accounts Payable Notes Payable Interest Payable Total current liabilities (A) 12,300 22,000 2,600 36,900 Non-Current Liabilities :- Long term Notes Payable (97780-22000) (B) Total Liabilities (A+B) = C 75,780 1,12,680 Shareholders Equity :- Common Stock Retained earnings Total Stockholders Equity (D) Total Liabilities and Shareholders Equity (C+D) 90,000 31,440 1,21,440 2,34,120 Amount $ 17,180 Income Statement :- Particulars Service Revenue Less: Operating Expenses Insurance expense Depreciation expense Operating Expenses Operating Income Interest Expense Net Income 780 7,360 8,140 9,040 2,600 6,440 Statement of Retained earnings :- Particulars Unadjusted balance or Beginning balance Add: Net Income Amount $ 25,000 6,440 31,440 Less: Dividends Closing balance 31,440