Question

MAF, Inc. Adjusted Trial Balance Nine Months Ended September 30, 2020 237,130 1,135,000 60,000 750 320,000 3,500 (6,000) (2,500) 50,000 31,000 16,500 57,600 39,600 200,000 470,000 Cash Accounts receivable Allowance for uncollectible accounts Interest receivable Equipment Inventory Supplies Prepaid insurance Prepaid advertising Notes receivable Office Equipment Accumulated depreciation - Office equip Equipment Accumulated depreciation - Equipment Land Building Accumulated depreciation - Building Accounts payable Salaries payable Interest payable Notes payable Common stock Additional paid-in capital: Common stock Retained earnings Dividends Equipment sales revenue Interest revenue Cost of goods sold - equipment Insurance expense Utilities expense Salaries expense Depreciation expense - office equip Depreciation expense - equipment Depreciation expense - building Advertising expense Supplies expense Interest expense Bad debt expense Totals 41,250 718,300 25,000 160 15,000 100,000 1,200,000 218,670 10,000 980,000 750 576,000 58,800 7,200 225,000 4,500 9,200 11,250 15,000 1,800 3,415,230 3,415,230
Please check my work for me, if I did anything wrong please give me an explanation for the correct answer. I have to do Balance sheet, RE statement, and Income Statement base off the Adjusted Trial balance.

Answer 1

Income Statement Nine months ended September 30,2020 Equipment sales revenue Less: cost of goods sold-Equipment Interest revenue $ 9,80,000 $ -5,76,000 $ 750 $ 4,04,750 Note 1 Gross Profit Operating Expenses: Insurance expenses Utilities expenses Depreciation expenses - office equipment Depreciation expenses - Equipment Depreciation expenses - Building Salaries and Wages expenses Advertising expenses Interest expenses Total Operating Expenses $ 58,800 $ 7,200 $ 4,500 $ 9,200 $ 11,250 $ 2,25,000 $ 15,000 $ 1,800 $ 3,32,750 Net Income $ 72,000

Statement of retained earnings Nine months ended September 30,2020 Retained earnings at the beginning of the period Add: Net income or Loss $ 2,18,670 $ 72,000 Note 2 $ 2,90,670 Less: Dividend Retained earnings at the end of the period $ - 10,000 $ 2,80,670

Balance Sheet At September 30, 2020 Assets Current Assets: Cash $ 2,37,130 Accounts Receivable $ 11,35,000 Less: Allowance for uncollectable accounts $ 60,000 Equipment Inventory $ 3,20,000 Prepaid insurance $ -6,000 Prepaid advertising $ -2,500 Supplies $ 3,500 Note receivables $ 50,000 Interest receivable $ 750 $ 16,77,880 Total Current Assets Property, Plant & Equipment Land Building Less: Accumulated depreciation Building Equipment Less: Accumulated depreciation Equipment Office equipment Less: Accumulated depreciation office $ 2,00,000 $ 4,70,000 $ 41,250 $ 57,600 $ -39,600 $ 31,000 $ -16,500 Net: Property, Plant & Equipment $ 6,61,250 Total Assets $ 23,39,130 Note 3

Liabilities and Stockholders' Equity Liabilities Current Liabilities: Account payable $ 7,18,300 Salaries and Wages payable $ 25,000 Interest payable $ 160 Notes payable $ 15,000 Total Current Liabilities Total Liabilities Stockholders' Equity Common Stock $ 1,00,000 Additional common stock $ 12,00,000 Retained Earnings $ 2,80,670 Total Stockholders' Equity Total Liabilities & Stockholders' Equity $ 7,58,460 Note 4 $ 7,58,460 Note 5 $ 15,80,670 $ 23,39,130 Note 1: COGST to be deducted from sales revenue Note2: Due to wrong computation of Income statement retained earnings got wrong, working are correct Note 3: Wrong totalling of fixed asset Note 4: Amount mismatch in current liability part note 5: Retained earnings in Stockholders equity direct taken from retained earrings statement (Please comment if you have any doubt, kindly give us positive rating)