Question

The adjusted trial balance of Carmen O'Connor Dance Studio Company follows: (Click the icon to view the adjusted trial balance.) Read the requirements. Requirement 1. Prepare the classified balance sheet of Carmen O'Connor Dance Studio Company at August 31, 2018. Use the report form. You must compute the ending balance of Retained Earnings. Begin by preparing the asset section of the balance sheet, then prepare the liabilities section and finally the stockholders' equity section. Carmen O'Connor Dance Studio Company Balance Sheet August 31, 2018 Assets Less: Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All

Answer 1

Carmen O'Connor Dance Studio Company Balance Sheet August 31, 2018 Assets Current Assets: Cash $15,800 Office Supplies $2,000 Prepaid rent $1,700 Total Current Assets $19,500 $53,000 -$5,000 $48,000 $67,500 Plant, Property and Equipment: Equipment Less: Accumulated Depreciation Equipment (net) Total Assets Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Salaries payable Unearned revenue Total current liabilities $3,900 $900 $3,800 $8,600 Long term liabilities: Long term notes payable Total liabilities $5,200 $13,800 Stockholders' Equity: Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $16,000 $37,700 $53,700 $67,500 Working notes: Carmen O'Connor Dance Studio Company Statement of Retained Earnings August 31, 2018 Opening balance, Retained Earnings Add: Net Income during the year $29,850 $8,750 Less: Dividends Closing balance, Retained Earnings $38,600 $900 $37,700 $17,300 Carmen O'Connor Dance Studio Company Income Statement Service revenue Less: Operating Expenses Salaries expense $4,800 Rent expense $2,000 Depreciation expense- equipment $450 Supplies expense $700 Utilities expense $600 Total expenses Net Income $8,550 $8,750