Question

Question 2 These items are taken from the financial statements of Bramble Corp. at December 31, 2017 Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2017) Accumulated depreciation-buildings Accounts payable $110,032 13,104 3,328 12,314 85,696 63,648 811 5,512 2,704 62,400 41,600 47,424 9,880 97,344 Accumulated depreciation-equipment 19,469 3,744 15,288 Notes payable Interest payable Service revenue Prepare a classified balance sheet. Assume that $ 14,144 of the note payable will be paid in 2018. (List current assets in or

Answer 1

Bramble Corp
Balance Sheet                                 December 31,2017
ASSETS
Current Assets
Cash		$ 12314
Accounts Receivable		$ 13104
Prepaid Insurance		$   3328
Total Current Assets		$ 28746
Fixed Assets
Land		$63648
Building	$110032
Accumulated Depreciation	($47424)	$ 62608
Equipment	$ 85696
Accumulated Depreciation	($19469)	$ 66227
Total Fixed Assets		$192483
TOTAL ASSETS		$221229
LIABILITIES
Current Liabilities
Accounts Payable	$ 9880
Interest Payable	$ 3744
Total Current Liabilities		$ 13624
Long Term Liabilities
Notes Payable	$97344
Total Long Term Liabilities		$97344
OWNER’S EQUITY
Owner’s Equity
Common Stock	$62400
Retained Earnings	$ 47861
Total Owner’s Equity		$110261
Total Liabilities and Owner’s Equity		$221229

               

Bramble Corp
Income statement for the year ended December 31,2017
Revenue
Service Revenue		$ 15288
Total Revenue
Expenses
Insurance Expense	$   811
Depreciation Expense	$ 5512
Interest Expense	$ 2704
Total Expenses		$ 9027
Net Income/( Net Loss)		$ 6261

Bramble Corp
Statement of Retained Earnings at the end of December 31,2017
Retained Earnings at the beginning of the period	$41600
Add: Net Income	$ 6261
Retained Earnings at the end of the period	$47861