Question

9. The assets, liabilities, and equities of Durham Design Studio have the following balances at December 31, 2018. The retained earnings was $32,000 at the beginning of the year. Al year end, common stock was $14,000 and dividends were $52,000. (Click the icon to view the account balances.) 1°(Click the icon to view the income staterment for the year.) "(Cilick the lcon to view the statement of retained earnings for the year ended December 31, 2018.) Prepare the balance sheet for Durham Design Studio as of Decermber 31, 2018. (If a box is not used in the table leave the box empty; do not select a label or enter a zero.) (1) (2) (3) Llabilitles Assets (4) (5) (6) (7) (8) (9) (10) (11) Stockholders' Equity (12) (13) (14) (15) (16) (18) (17) 9: Data Table Nates Payable 9,400 Office Fumiture 35,400 Utilities Expense Rent Expense 25,000 6,900 Accounts Payable Cash 4,000 3,800 Office Supplies 4,100 Service Revenue 149,700 Accounts Receivable 11,700 Salaries Expense 64,000 Miscellaneous Expense Property Tax Expense 1,800 4,000 10: Roforonco

Answer 1

The data table have detail of P&L expense and Balance sheet item as well. The P&L Expense and retained earning is already prepared and we have to prepare only balance sheet.

As far as selecting fields 1-3, a clue is already available as per headings of P&L. The balance sheet is always of particular date hence it will be of December 31, 2018.

Asset side usually starts with fixed assets and then current assets are placed.

Liability side starts with long term loan first the followed by current liabilities. In addition the format also gives hint that liabilities needs to be divided between liabilities and stock holder equity hence details needs to incorporated appropriately.

1	Darham Design Studio
2	Balance Sheet
3	December 31, 2018
Assets				Liabilities
4	Office Furniture		35,400	5	Notes Payable	9,400
6	Office Supplies		4,100	7	Accounts Payable	3,800
8	Account Receivable		11,700	9	Total Liabilities	13,200
10	Cash		4,000	Stockholders' Equity
11				12	Common Stock	14,000
13				14	Retained Earning	28,000
15				16	Total Stockholder's Equity	42,000
17	Total Assets		55,200	18	Total Liabilities & Stockholder's Equity	55,200