Question

Question 1 of 1 -/35 Bramble Corp.'s balance sheet at December 31, 2021, is presented below. Cash BRAMBLE CORP Balance Sheet December 31, 2021 $73,800 Accounts payable 136,500 Common stock ($10 par) (4.500) Retained earnings 13.200 $76,800 240,000 Accounts receivable Allowance for doubtful accounts Supplies 382.200 Land 120,000 426,000 Buildings Accumulated depreciation-buildings (66,000) $699.000 $699.000 During 2022, the following transactions occurred. 1. On January 1, Bramble issued 3,600 shares of $40 par, 7% preferred stock for $147.600. 2. On January 1, Bramble also issued 2.700 shares of the $10 par value common stock for $63,000. 3. Bramble performed services for $960,000 on account. 4. On April 1, 2022. Bramble collected fees of $108,000 in advance for services to be performed from April 1. 2022, to March 31, 2023. 5. Bramble collected $828.000 from customers on account. 6. Bramble bought $105,300 of supplies on account. 7. Bramble paid $96,600 on accounts payable. 8. Bramble reacquired 1.200 shares of its common stock on June 1 for $28 per share. 9. Pald other operating expenses of $564,600. 10. On December 31, 2022, Bramble declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023 11. An account receivable of $5,100 which originated in 2022 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $17.700 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $10.500 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $30,000 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount

Answer 1

A 1 2 Account Titles 3 Cash 4 Accounts Receivable 5 Allowance for doubtful accounts 6 Supplies 7 Land 8 Buildings 9 Accumulated depreciation - buildings 10 Accounts Payable 11 Unearned Service Revenue 12 Dividends Payable 13 Income Tax Payable 14 Preferred Stock 15 Additional Paid-in Capital, Preferred 16 Common Stock 17 Additional Paid-in Capital, Common Stock 18 Retained Earnings 19 Treasury Stock, Common 20 Cash Dividends 21 Service Revenue 22 Operating Expenses 23 Bad Debt Expense 24 Supplies Expense 25 Depreciation Expense - building 26 Income Tax Expense 27 B C D E F G Unadjusted T/B Adjustments Adjusted T/B Debit ($) Credit ($) Debit ($) Credit ($) Debit ($) Credit ($) $ 525,600 $ 525,600 $ 268,500 $ 268,500 $ 9,600 900 $ 10,500 $ 118,500 $ 100,800 $ 17,700 $ 120,000 $ 120,000 $ 426,000 $ 426,000 $ 66,000 $ 13,200 $ 79,200 $ 85,500 $ 85,500 $ 108,000 $ 81,000 $ 27,000 $ 40.680 $ 40.680 $ 106,920 $ 106,920 $ 144,000 $ 144,000 $ 3,600 $ 3,600 $ 267,000 $ 267,000 $ 36,000 $ 36,000 $ 382,200 $ 382,200 $ 33,600 $ 33,600 $ 40,680 $ 40,680 $ 960,000 $ 81,000 $1,041,000 $ 564,600 $ 564,600 5.100 $ 900 $ 6,000 $ 100,800 $ 100,800 $ 13,200 $ 13,200 $ 106,920 $ 106,920 $ 28 Totals $2,102,580 $2,102,580 $ 302.820 $ 302,820 $2,223,600 $2,223,600

J к - 1 2 $1,041,000 Bramble Corp. Income Statement 3 for the year ended December 31, 2022 4 Service Revenue 5 Less: Expenses 6 Operating Expense $ 564,600 7 Bad Debt Expense $ 6,000 Supplies Expense $ 100,800 9 Depreciation Expense $ 13,200 10 Total Expenses 11 Operating Income 12 Less: Income Tax Expenses 13 Net Income 14 Bramble Corp 16 Statement of Retained Earnings 17 for the year ended December 31, 2022 18 Retained Earnings, January 1, 2022 19 Add: Net Income 20 21 Less: Cash Dividends 22 Retained Earnings, December 31, 2022 23 $ 684,600 $ 356,400 $ 106,920 $ 249,480 5 $ 382,200 $ 249,480 $ 631,680 $ 40,680 $ 591,000

M 0 P 1 $ 801,300 $ 466,800 $ 1,268,100 N Bramble Corp 2 Balance Sheet 3 December 31, 2022 4 Assets 5 Current Assets 6 Cash $ 525,600 7 Accounts Receivable $ 268,500 8 Less: Allowance for doubtful accounts $ 10,500 9 $ 258,000 10 Supplies $ 17,700 11 Total Current Assets 12 Property, Plant and Equipment 13 Land $ 120,000 14 Buildings $ 426,000 15 Less: Accumulated Depreciation - Buildings $ 79,200 16 $ 346,800 17 18 Total Assets 19 Liabilities and Stockholder's Equity 20 Current Liabilities 21 Accounts Payable 85,500 22 Dividends Payable 40.680 23 Income Tax Payable $ 106,920 24 Unearned Service Revenue 27,000 25 Total Current Liabilities 26 Stockholder's Equity 27 Capital Contributed 28 Paid up Capital 29 Preferred Stock $ 144,000 30 Common Stock $ 267,000 31 Total Paid up Capital $ 411,000 32 Additional Paid up Capital 33 Additional Paid up Capital, Preferred $ 3,600 34 Additional Paid up Capital, Common Stock $ 36,000 35 Total Additional Paid up Capital 39,600 36 Total Capital Contributed $ 450,600 37 Retained Earnings $ 591,000 38 $1,041,600 39 Less: Tresury Stock 33,600 40 Total Stockholder's Equity 41 Total Liabilities and Stockholder's Equity 42 $ 260,100 $ 1,008,000 $ 1,268,100

D F B Unadjusted T/B Debit ($) =73800+147600+63000+108000+828000-96600-(1200*28)-564600 1=136500+960000-828000 E Adjustments Credit ($) Credit ($) Debit ($) 3 4 =4500+5100 =10500-CS =B6-17700 =13200+105300 120000 426000 =SLN(B8,30000,30) 66000 =76800+105300-96600 108000 =B20 =C11*(9/12) =(G21-SUM(F22:F25)*30% 2 Account Titles Cash Accounts Receivable 5 Allowance for doubtful accounts 6 Supplies 7 Land 8 Buildings 9 Accumulated depreciation - buildings 10 Accounts Payable 11 Unearned Service Revenue 12 Dividends Payable 13 Income Tax Payable 14 Preferred Stock 15 Additional Paid-in Capital, Preferred 16 Common Stock 17 Additional Paid-in Capital, Common Stock 18 Retained Earnings 19 Treasury Stock, Common 20 Cash Dividends 21 Service Revenue 22 Operating Expenses 23 Bad Debt Expense 24 Supplies Expense 25 Depreciation Expense - building 26 Income Tax Expense 27 28 Totals G Adjusted T/B Debit ($) Credit ($) =B3 =B4 =C5+E5 =B6-E6 =B7 =B8 =C9+E9 =C10 =C11-D11 =C12 =E13 =C14 =C15 =C16 =C17 =C18 =B19 =B20 =C21-E21 =B22 =B23+D23 =D24 =D25 =D26 1=3600*40 =147600-(3600*40) =240000+(2700*10) =63000-(2700*10) 382200 I=1200*28 =((3600*40)*7%)+((24000+2700-1200)*1.2) =960000 =D11 =564600 =5100 =E5 =E6 =E9 =E13 =SUM(B3-B26) =SUM(C3.C26) =SUM(D3:D26) -SUM(E3:26) =SUM(F3:F26) =SUM(G3:G26)

1 1 K Bramble Corp 2 Income Statement 3 for the year ended December 31, 2022 4 Service Revenue =G21 5 Less: Expenses 6 Operating Expense =F22 7 Bad Debt Expense =F23 8 Supplies Expense =F24 9 Depreciation Expense =F25 10 Total Expenses =SUM(J6:19) 11 Operating Income =K4-K10 12 Less: Income Tax Expenses =K11*30% 13 Net Income =K11-K12 14 Bramble Corp. 16 Statement of Retained Earnings 17 for the year ended December 31, 2022 18 Retained Earnings, January 1, 2022 =G18 19 Add: Net Income =K13 20 =K18+K19 21 Less: Cash Dividends =G12 22 Retained Earnings, December 31, 2022 =K20-K21 in 2 3

P =SUM(06:010) =SUM(013:016) =SUM(P10:P17) M N 1 Bramble Corp. 2 Balance Sheet 3 December 31, 2022 4 Assets 5 Current Assets 6 Cash =F3 7 Accounts Receivable =F4 8 Less: Allowance for doubtful accounts =G5 9 =N7-N8 10 Supplies =F6 11 Total Current Assets 12 Property, Plant and Equipment 13 Land =F7 14 Buildings -F8 15 Less: Accumulated Depreciation - Buildings =G9 16 =N14-N15 17 18 Total Assets 19 Liabilities and Stockholder's Equity 20 Current Liabilities 21 Accounts Payable =G10 22 Dividends Payable =G12 23 Income Tax Payable =G13 24 Unearned Service Revenue =G11 25 Total Current Liabilities 26 Stockholder's Equity 27 Capital Contributed 28 Paid up Capital 29 Preferred Stock =G14 30 Common Stock =G16 31 Total Paid up Capital =SUM(N29N30) 32 Additional Paid up Capital 33 Additional Paid up Capital, Preferred =G15 34 Additional Paid up Capital. Common Stock =G17 35 Total Additional Paid up Capital =SUM(N33:N34) 36 Total Capital Contributed =SUM(031:035) 37 Retained Earnings =K22 38 =036+037 39 Less: Tresury Stock =F19 40 Total Stockholder's Equity 41 Total Liabilities and Stockholder's Equity 42 =SUM(021:024) =038-039 =SUM(P24:P40)

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