Question

8 The adjusted trial balance for Tybalt Construction as of December 31, 2019, follows. Credit ts eBook $ 27,500 Print 50,000 ferences TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2019 Debit No. Account Title $ 6,000 101 Cash 104 Short-term investments 23,500 126 Supplies 9,500 8,900 128 Prepaid insurance 167 Equipment 55,000 168 Accumulated depreciation-Equipment 173 Building 150,000 174 Accumulated depreciation-Building 183 Land 64,350 201 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 12,000 401 Professional fees earned 406 Rent earned 407 Dividends earned 409 Interest earned 606 Depreciation expense-Building 11,000 612 Depreciation expense-Equipment 8,250 623 Wages expense 28,000 633 Interest expense 4,700 637 Insurance expense 8,600 640 Rent expense 11,000 652 Supplies expense 6,200 607 Det 7 ann 15,000 2,300 3,300 2,100 1,000 7,500 6,000 63,000 6,000 123,900 99,000 17,000 2,600 2,000 Ovnene

Answer 1

1a]	INCOME STATEMENT
	Revenues:
	Professional fees earned	$ 99,000
	Rent earned	$ 17,000
	Dividends earned	$               2,600
	Interest earned	$               2,000
	Total revenues		$       120,600
	Expenses:
	Depreciation expense-building	$ 11,000
	Depreciation expense-equipment	$               8,250
	Wages expense	$ 28,000
	Interest expense	$               4,700
	Insurance expense	$               8,600
	Rent expense	$ 11,000
	Supplies expense	$               6,200
	Postage expense	$               2,800
	Property taxes expense	$               4,000
	Repairs expense	$               7,900
	Telephone expense	$               2,200
	Utilities expense	$               4,300
	Total expenses		$          98,950
	Net income		$          21,650
1-b]	STATEMENT OF RETAINED EARNINGS
	Beginning balance		$ 123,900
	Add: Net income	$            21,650
	Less: Dividends	$            12,000	$            9,650
	Ending balance		$ 133,550
1-c]	BALANCE SHEET
	Assets
	Current Assets:
	Cash		$       6,000
	Short-term investments		$     23,500
	Supplies		$       9,500
	Prepaid Insurance		$       8,900
	Total Current Assets			$      47,900
	Non-Current Assets:
	Property, Plant, Equipment	$       55,000
	Less: Accumulated Depreciation - PPE	$       27,500	$     27,500
	Building	$     150,000
	Less: Accumulated Depreciation - Building	$       50,000	$   100,000
	Land		$     64,350	$        191,850
	Total Non-current Assets			$        239,750
	Total Assets
	Liabilities & Stockholders' equity
	Current liabilities:
	Account Payable	$       15,000
	Interest Payable	$         2,300
	Rent payable	$         3,300
	Wages payable	$         2,100
	Property taxes payable	$         1,000
	Unearned professional fees	$         7,500
	Current portion of long term note payable	$         6,000
	Total Current liabilities		$     37,200
	Non-current liabilities:
	Long-term notes payable		$     63,000
	Total liabilities			$        100,200
	Stockholder's Equity:
	Common stock		$       6,000
	Retained Earnings		$   133,550	$        139,550
	Total Liabilities & Stockholder's Equity			$        239,750
2]	CLOSING ENTRIES
	Professional fees earned	$            99,000
	Rent earned	$            17,000
	Interest earned	$ 2,000
	Dividend earned	$ 2,600
	Ìncome summary		$       120,600
	Income summary	$            98,950
	Depreciation expense-building		$          11,000
	Depreciation expense-equipment		$            8,250
	Wages expense		$          28,000
	Interest expense		$            4,700
	Insurance expense		$            8,600
	Rent expense		$          11,000
	Supplies expense		$            6,200
	Postage expense		$            2,800
	Property taxes expense		$            4,000
	Repairs expense		$            7,900
	Telephone expense		$            2,200
	Utilities expense		$            4,300
	[To close expense accounts]
	Income summary	$            21,650
	Retained earnings		$          21,650
	[To close income summary]
	Retained earnings	$            12,000
	Dividends		$          12,000
	[To close dividends]