Question

The following selected account balances, before adjustments, for Fulton Digital Services Company are available. Additional information regarding year-end adjustments is also provided below. E (Click the icon to view the selected accounts and balances.) (Click the icon to view the adjustment data and additional information.) Complete the proof that Total assets = Total liabilities + Total stockholders' equity. after all adjustments have been made. Total assets = Total liabilities + Total stockholders' equity + * Data Table A More Info Cash .....................$ Accounts receivable ......... Supplies .................. Prepaid insurance........... Building .................. Accumulated depreciation- building 11,000 46,000 13,000 158,000 33,000 7,900 Common stock .......... $ 7,700 Retained earnings ....... 4,200 Dividends declared ....... 3,200 Service revenue ......... 106,000 Salary expense........... Depreciation expense- 12,000 building ......... 54,000 Supplies expense . 6,500 Insurance expense ....... Advertising expense ...... 5,600 Utilities expense ......... Adjusting data at the end of the year include the following: a. Unearned service revenue that has been earned, $1,680 b. Accrued service revenue, $31,600 c. Supplies used in operations, $3,400 d. Accrued salary expense, $3,100 e. Prepaid insurance expired, $1,100 f. Depreciation expense-building, $2,000 Megan Russell, the principal stockholder, has received an offer to sell Fulton Digital Services Company. She needs to know the following information within one hour: a. Net income for the year covered by these data b. Total assets c. Total liabilities d. Total stockholders' equity e. Proof that Total assets = Total liabilities + Total stockholders' equity after all items are updated Land ................. Accounts payable ............ Salary payable ............. Unearned service revenue .... 7,600 2,500 Print Done Print Done

Answer 1

Ques a
service revenue	$           191,280
salary expense	$           (36,100)
Depreciation expense	$             (2,000)
supplies expense	$             (3,400)
Insurance expense	$             (1,100)
Advertising expense	$             (7,600)
Utilities expense	$             (2,500)
Net income	$           138,580
Ques b
Cash	$               7,900
Accounts receivable	$             39,300
supplies	$                   800
Prepaid insurance	$               2,100
Building	$           106,000
Accumulated depreciation	$           (14,000)
Land	$             54,000
Total assets	$           196,100
Ques c
Accounts payable	$               6,500
Salary payable	$               3,100
Unearned service revenue	$               3,920
Total liabilities	$             13,520
Ques d
common stock	$             11,000
retained earnings	$             46,000
Add:Net income	$           138,580
Less:dividends	$           (13,000)
Total stockholders equity	182580
Ques e
Total Assets	=	Total liabilities	+	Total equity
$                                          196,100	=	$      13,520	+	182580

Working

	Before adjustments		Adjustments		Adjusted trial balance
Accounts	debit	credit	debit	credit	debit	credit
Cash	$               7,900				$         7,900
Accounts receivable	$               7,700		$         31,600		$      39,300
supplies	$               4,200			$            3,400	$            800
Prepaid insurance	$               3,200			$            1,100	$         2,100
Building	$           106,000				$    106,000
Accumulated depreciation		$      12,000		$            2,000		$        14,000
Land	$             54,000				$      54,000
Accounts payable		$        6,500				$          6,500
Salary payable				$            3,100		$          3,100
Unearned service revenue		$        5,600	$            1,680			$          3,920
common stock		$      11,000				$        11,000
retained earnings		$      46,000				$        46,000
dividends	$             13,000				$      13,000
service revenue		$   158,000		$         33,280		$      191,280
salary expense	$             33,000		$            3,100		$      36,100
Depreciation expense			$            2,000		$         2,000
supplies expense			$            3,400		$         3,400
Insurance expense			$            1,100		$         1,100
Advertising expense	$               7,600				$         7,600
Utilities expense	$               2,500				$         2,500
total	$           239,100	$   239,100	$         42,880	$         42,880	$    275,800	$      275,800