Question

The unadjusted trial balance and income statement amounts from the December 31 adjusted trial balance of

Emerson Production Company follow.

.Use the data in the partial worksheet to prepare Emerson Production Company​'s

classified balance sheet at December 31 of the current year. Use the report format. First you must calculate the adjusted balance for several of the​ balance-sheet accounts.

​Let's prepare the balance sheet for Emerson Production Company

​(If a box is not used in the balance sheet leave the box​ empty; do not select a label or enter a​ zero.)

Emerson Production Company Unadjusted Trial Balance Adjustments Account Trial Balance 13,690 Cash Prepaid rent Equipment 1,900 41,000 3,800 4,700 8,600 Accumulated depreciation equipment Accounts payable Salary payable Unearned service revenue Income tax payable Notes payable, long-term Common stock Retained earnings Dividends 12,000 8,400 13,190 1,600 13,400 19,600 Service revenue Salary expense Rent expense Depreciation Expense-equipment Income tax expense 4,200 1,700 4,800 2,500 900 1,400 9,600 $ $ 64,090 64,090 $ 19,600 Total

Answer 1

Solution

Emerson Production Company

Unadjusted, adjustments and adjusted trial balance:
Account	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$13,690				$13,690
Prepaid Rent	$1,900			$800	$1,100
Equipment	$41,000				$41,000
Accumulated Depreciation - Office Equipment		$3,800		$900		$4,700
Accounts Payable		$4,700				$4,700
Salaries Payable				$600		$600
Unearned Service Revenue		$8,600	$6,200			$2,400
Income Tax Payable				$1,400		$1,400
Notes Payable, Long-Term		$12,000				$12,000
Common Stock		$8,400				$8,400
Retained Earnings		$13,190				$13,190
Dividends	$1,600				$1,600
Service Revenue		$13,400		$6,200		$19,600
Salary Expense	$4,200		$600		$4,800
Rent Expense	$1,700		$800		$2,500
Depreciation Expense - Office Equipment	0		$900		$900
Income Tax Expense			$1,400		$1,400
Totals	$64,090	$64,090	$9,900	$9,900	$66,990	$66,990

Balance Sheet:

Emerson Production Company
Balance Sheet
As of December 31
Assets
Current Assets
Cash	13,690
Prepaid Rent	$1,100
Current Assets		$14,790
Fixed Assets
Equipment	$41,000
Less: Accumulated depreciation	$4,700	$36,300
Total Assets		$51,090
Liabilities
Current Liabilities:
Accounts Payable	$4,700
Salary Payable	$600
Income Tax Payable	$1,400
Unearned Service Revenue	$2,400
Current Liabilities:		$9,100
Notes Payable, Long-Term		$12,000
Total Liabilities		$21,100
Shareholders' Equity
Common Stock	$8,400
Retained Earnings	$21,590	$29,990
Total Liabilities and Stockholders' Equity		$51,090

Computations:

Retained earnings –

Beg. Balance = $13,190

Add: net income = $10,000

Total = $23,190

Less: dividends = $1,600

Retained earnings , ending balance = $21,590

Net income –

Income statement;

Revenue          $19,600

Expenses:

Salary expense            $4,800

Rent expense              $2,500

Depreciation – expense $900

Income tax expense    $1,400

Total expenses            $9,600

Net income     $10,000