Question

The adjusted trial balance for Amazon International Continental Pacific Atlas (AICPA) Company at December 31, 2021, is presented below: Credit Debit 12,300 168,000 6,800 43,000 480,000 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation equipment Accounts payable Notes payable-due in three months Salaries payable Interest payable Common stock Retained earnings Dividends Sales revenue Costs of goods sold Salaries expense Rent expenite Depreciation expense Interest expense Advertising expense Totals 143,000 48,000 48,000 5,800 18,100 290,000 89,600 15,300 580,000 270,000 138,000 33,000 48,000 3,800 4,300 1, 222,500 1,222,500 Required: Prepare a classified balance sheet for AICPA Company as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Net Income for the year ended December 31, 2021 AMAZON INTERNATIONAL CONTINENTAL PACIFIC ATLAS COMPANY Balance Sheet At December 31, 2021 Assets 580,000 270,000 310,000 $12,300 168,000 6,800 43,000 230,100 Sales revenue Less: Cost of goods sold Gross profit Indirect expenses: Salaries expense 138,000 Rent expense 33,000 Depreciation expense 48,000 Interest expense 3,800 Advertising expense 4,300 Total Indirect expenses Net Income Less: Dividends Transferred to Retained Earnings 337,000 337,000 $567,100 227,100 82,900 15,300 67,600 Current Assets Cash Accounts Receivable Prepaid Rent Inventory Total Current Assets Fixed Assets Equipment 480,000 Less: Accumulated depreciation-equipment 143,000 Total Fixed Assets Total Assets Liabilities and Shareholders' Equity Current Liabilities Accounts payable Notes payable Salaries payable Interest payable Total Current Liabilities Shareholders' Equity Common Stock Retained Earnings (89,600 + 67,600) Total Shareholders' Equity Total Liabilities and Shareholders' Equity 48,000 48,000 5,800 18,100 119,900 290,000 157,200 447,200 567,100