Question

Required Information ABC Corporation was formed at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were as follows: Cash $21. Bee 10. eee 200 10,5ee 1,200 25,880 2,400 Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Deferred Revenue Interest Payable Note Payable (long-term) Common Stock Additional Paid-In Capital, Common Retained Earnings 2,5ee 4,800 300 20, eee 12, 18, eee 8,300 The following Information is relevant to the first month of operations in the following year: • ABC sells its Inventory at $200 per unit. ABC's January 1 Inventory balance consists of 140 units at a total cost of $10,500. ABC's policy is to use the FIFO method, recorded using a perpetual Inventory system. • The $1,200 In Prepaid Rent on the December 31st Post-Closing Trial balance is a prepayment of January's rent. • The equipment was purchased on July 1 of last year. It has a residual value of $1,000 and an expected life of five years. It is being depreciated using the straight-line method. • Employee wages are $5,000 per month. Ignore payroll taxes and deductions. • Deferred Revenue is for 20 units of Inventory that were ordered and paid for in advance by two customers in late December. One order of 15 units is to be filled in January, and the other will be filled in February. • Notes Payable arises from a three-year, 6 percent bank loan received on October 1 last year. • The par value on the common stock is $2 per share.

How to fill out balance sheet?

Answer 1

Unadjusted
ABC Corporation
Balance Sheet
At January 31
Current Assets
Cash	$102,140
Accounts Receivable	$29,395
Allowance for Doubtful Debts	($95)
Inventory	$3,575
Prepaid Rent	$1,200
Total Current Assets		$136,215
Non-Current Assets
Equipment	$10,000
Accumulated Depreciation	$0
Total Non-Current Assets		$10,000
Total Assets		$146,215
Current Liabilities
Accounts Payable	$4,875
Deferred Revenue	$1,000
Total Current Liabilities		$5,875
Non-Current Liabilities
Notes Payable	$90,000
Total Non-Current Liabilities		$90,000
Total Liabilities		$95,875
Stockholders' Equity
Common Stock	$12,000
Additional Paid-in Capital	$18,000
Retained Earnings	$20,340
Total Stockholders' Equity		$50,340
Total Liabilities and Stockholder Equity		$146,215

Working Notes

	Cash	Accounts Receivable	Allow. For Doubtfull Debts	Inventory	Prepaid Rent	Equipment	Acc Depreciation	Accounts Payable	Salaries& wages payable	Deferred Revenue	Interest Payable	Notes Payable	Common Stock	Add. Paid in capital	Retained Earnings
Beginning Balance - Jan 01	$21,000	$10,000	($200)	$10,500	$1,200	$25,000	($2,400)	$0	($2,500)	($4,000)	($300)	($20,000)	($12,000)	($18,000)	($8,300)
January Transactions
1.	($2,500)								$2,500
2.	($10,000)					$10,000
3. & 8.
4.		($105)	$105
5.		$20,000													($20,000)
6.				($7,500)											$7,500
7.	$9,500	($9,500)
8.	($3,000)														$3,000
9.				$4,875				($4,875)
10.							($200)								$200
11.	$20,000					($25,000)	$2,600								$2,400
12.	($2,500)														$2,500
13.	($20,360)										$300	$20,000			$60
14.		$9,000													($9,000)
15.				($3,325)											$3,325
16.										$3,000					($3,000)
17.				($975)											$975
18.	$90,000											($90,000)
Ending Balance - Jan 31	$102,140	$29,395	($95)	$3,575	$1,200	$10,000	$0	($4,875)	$0	($1,000)	$0	($90,000)	($12,000)	($18,000)	($20,340)