Question

The adjusted trial balance for Tybalt Construction as of December 31, 2019, follows. Credit $ 20,000 59,000 208 Reiterest bayable TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2019 No. Account Title Debit 101 Cash $ 7,500 104 Short-term investments 22,500 126 Supplies 8,700 128 Prepaid insurance 7,300 167 Equipment 40,000 168 Accumulated depreciation-Equipment 173 Building 177,000 174 Accumulated depreciation-Building 183 Land 56,720 201 Accounts payable 203 Interest payable 208 Rent payable 210 Wages payable 213 Property taxes payable 233 Unearned professional fees 244 Current portion of long term note payable 251 Long-term notes payable 307 Common stock 318 Retained earnings 319 Dividends 12,400 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expense-Building 12,980 612 Depreciation expense-Equipment 6,000 623 Wages expense 27,500 633 Interest expense 3,400 637 Insurance expense 9,800 640 Rent expense 11,800 652 Supplies expense 6,300 682 Postage expense 3,400 683 Property taxes expense 4,700 684 Repairs expense 8,800 17,500 2,900 3,800 2,200 1,400 7,200 7,000 60,500 7,500 123, 300 100,000 16,000 2,500 2,500

Answer 1

1A.

TYBALT CONSTRUCTION
Income Statement
For Year Ended December 31, 2019
Revenues
Professional fees	100000
Rent	16000
Dividends	2500
Interest	2500
Total revenues		121000
Expenses
Depreciation expense-Building	12980
Depreciation expense-Equipment	6000
Wages expense	27500
Interest expense	3400
Insurance expense	9800
Rent expense	11800
Supplies expense	6300
Postage expense	3400
Property taxes expense	4700
Repairs expense	8800
Telephone expense	2500
Utilities expense	4000
Total expense		101180
Net income		19820

1B.

TYBALT CONSTRUCTION
Statement of Retained Earnings
For Year Ended December 31, 2019
Retained earnings, Dec. 31, 2018	123300
Add: Net income	19820
	143120
Less: Dividends	12400
Retained earnings, Dec. 31, 2019	130720

1C.

TYBALT CONSTRUCTION
Balance Sheet
December 31, 2019
Assets
Current assets
Cash	7500
Short-term investments	22500
Supplies	8700
Prepaid insurance	7300
Total current assets		46000
Property, Plant, Equipment
Equipment	40000
Accumulated depreciation	-20000	20000
Building	177000
Accumulated depreciation	-59000	118000
Land		56720
Total Property, Plant, Equipment		194720
Total assets		240720
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	17500
Interest payable	2900
Rent payable	3800
Wages payable	2200
Property taxes payable	1400
Unearned professional fees	7200
Current portion of long-term notes payable	7000
Total current liabilities		42000
Long-term liabilities
Long-term notes payable		60500
Total liabilities		102500
Stockholders' Equity
Common stock		7500
Retained earnings		130720
Total stockholders' equity		138220
Total Liabilities and Stockholders' Equity		240720

2.

Date	General Journal	Debit	Credit
Dec. 31	Professional fees	100000
	Rent	16000
	Dividends	2500
	Interest	2500
	Income Summary		121000
	(To close revenue accounts)
Dec. 31	Income Summary	101180
	Depreciation expense-Building		12980
	Depreciation expense-Equipment		6000
	Wages expense		27500
	Interest expense		3400
	Insurance expense		9800
	Rent expense		11800
	Supplies expense		6300
	Postage expense		3400
	Property taxes expense		4700
	Repairs expense		8800
	Telephone expense		2500
	Utilities expense		4000
	(To close expense accounts)
Dec. 31	Income Summary ($121000 - $101180)	19820
	Retained earnings		19820
	(To close income summary)
Dec. 31	Retained earnings	12400
	Dividends		12400
	(To close dividends account)