Question

Problem #14 - 30 Points (FORMATTING IMPORTANT) The adjusted trial balance of Ryan Company appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31: 1. an income statement. a retained earnings statement. 3. a balance sheet. (You need to calculate the amount of cash) Trial Balance Debit Credit Cash $ 285,000 $ Accounts Receivable ? $ Allowance for Doubtful Accounts $ - $ Supplies $ 45,000 $ Prepaid Insurance 16,500 $ Equipment 178,500 $ - Accumulated Depreciation - Equipments $ 24,000 Notes Payable $ 150,000 Accounts Payable - $ 75,000 Interest Payable - $ 1,500 Unearned Service Revenue $ 24,000 Salaries & Wage Payable $ 18,000 Common Stock $ 300,000 Retained Earnings $ 125,000 Dividends 50,000 $ Service Revenue $ 318,000 Salaries & Wage Expense 138,000 $ Supplies Expense 45,000 $ Rent Expense 27,000 $ Insurance Expense 15,000 $ Interest Expense 1,500 $ Depreciation Expense 12,000 $ Bad Debt Expense 4,800 $ I es iseseisvesnis is esses es esasen

Answer 1

Statement of Comprehensive Income Ryan Company For the year ended December 31 Particulars Amount Revenue Sales Total Revenue 318,000 318,000 Expenses Supplies Salaries and Wages Rent Insurance Bad Debt Interest Depreciation Total Expenses 45,000 138,000 27,000 15,000 4,800 1,500 12,000 243,300 74,700 Net Income Income Taxes Income after Taxes Dividend Transferred to retained Earnings 74,700 50,000 24,700 Statement of Retained earnings Opening Balance Transferred from Income statement Closing Balance 125,000 24,700 149,700

Statement of Financial Position Ryan Company As at December 31 Assets Amount Non Current Assets Property, Plant an equipment 154,500 285,000 45,000 Current Assets Cash Supplies Inventories Trade Receivables (Working 1) Less: Allowance for Doubtful Accounts Prepaid Insurance 222,000 4,800 217,200 16,500 Total Assets 718,200 Equity and Liabilities Amount Equity Share Capital Retained Earnings 300,000 149,700 Total Equity (A) 449,700 Current Liabilties Trade Payables Notes Payable Interest Payable Unearned Service Revenue Salaries and Wages Payble 75,000 150,000 1,500 24,000 18,000 Total Current Liabilities (B) 268,500 Total Equity and Liabilities (A+B) 718,200 Working 1 Total tally of Credit side Total tally of Debit side Balancing Figure of Accounts receivable 1,040,300 818,300 222,000