Question

The adjusted trial balance for Tybalt Construction as of December 31, 2019, follows. Credit $ 30,000 52,000 TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2019 No. Account Title Debit 101 Cash $ 7,500 104 Short-term investments 25,000 126 Supplies 9,700 128 Prepaid insurance 7,800 167 Equipment 60,000 168 Accumulated depreciation-Equipment 173 Building 156,000 174 Accumulated depreciation-Building 183 Land 58,960 201 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 11,000 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expense-Building 11,440 612 Depreciation expense-Equipment 9,000 623 Wages expense 31,500 633 Interest expense 3,100 637 Insurance expense 7,500 640 Rent expense 12,700 652 Supplies expense 7,300 682 Postage expense 4,100 683 Property taxes expense 3,800 684 Repairs expense 6,300 688 Telephone expense 2,100 690 Utilities expense 3,300 Totals $438,100 17,500 2,800 3,000 2,100 1,000 7,300 7,500 62,500 7,500 125,400 98,000 16,000 2,700 2,800 $438,100

Answer 1

1a.

Income Statement
For the year ended December 31,2019
Revenues:
Professional fees earned		$98,000
Rent earned		$16,000
Dividends earned		$2,700
Interest earned		$2,800
Total Revenues		$119,500
Expenses:
Depreciation expense-Building	$11,440
Depreciation expense-Equipment	$9,000
Wages expense	$31,500
Interest expense	$3,100
Insurance expense	$7,500
Rent expense	$12,700
Supplies expense	$7,300
Postage expense	$4,100
Property taxes expense	$3,800
Repairs expense	$6,300
Telephone expense	$2,100
Utilities expense	$3,300
Total expenses		$102,140
Net income		$17,360

1b.

Statement of retained earnings
For the year ended December 31,2019
Retained earnings, Dec 31,2018	$125,400
Add: net income	$17,360
	$142,760
(Less): Dividends	($11,000)
Retained earnings, Dec 31,2019	$131,760

1c.

Balance Sheet
As of December 31,2019
Assets		Liabilities and stockholders' Equity
Current Assets:		Current liabilities:
Cash	$7,500	Accounts payable	$17,500
Short-term investments	$25,000	Interest payable	$2,800
Supplies	$9,700	Rent payable	$3,000
Prepaid insurance	$7,800	Wages payable	$2,100
Total current assets	$50,000	Property taxes payable	$1,000
		Unearned professional fees	$7,300
Property,plant and equipment:		Current portion of long term notes payable	$7,500
Land	$58,960	Total current liabilities	$41,200
Building	$156,000	Long-term debt:
Accumulated depreciation-Building	($52,000)	Long-term notes payable	$62,500
Equipment	$60,000	Total liabilities	$103,700
Accumulated depreciation-Equipment	($30,000)
Total property,plant,and equipment	$192,960	Stockholders' Equity:
		Common stock	$7,500
		Retained earnings	$131,760
		Total stockholders' equity	$139,260
Total assets	$242,960	Total liabilities and stockholders' Equity	$242,960

2.

Date	Account title and Explanation	Debit	Credit
Dec 31,2019	Professional fees earned	$98,000
	Rent earned	$16,000
	Dividends earned	$2,700
	Interest earned	$2,800
	Income Summary		$119,500
	[To close revenue accounts]
Dec 31,2019	Income Summary	$102,140
	Depreciation expense-Building		$11,440
	Depreciation expense-Equipment		$9,000
	Wages expense		$31,500
	Interest expense		$3,100
	Insurance expense		$7,500
	Rent expense		$12,700
	Supplies expense		$7,300
	Postage expense		$4,100
	Property taxes expense		$3,800
	Repairs expense		$6,300
	Telephone expense		$2,100
	Utilities expense		$3,300
	[To close expenses accounts]
Dec 31,2019	Income summary	$17,360
	Retained earnings		$17,360
	[To close income summary account]
Dec 31,2019	Retained earnings	$11,000
	Dividends		$11,000
	[To close dividends accounts]