Question

The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,000 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 877,105 Interest Income 5,500 Dividends 7,000 Rent Expense 59,900 Wages Expense 529,000 Supplies Expense 40,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,526,565 $1,526,565 Use this information to prepare the Balance Sheet for the fiscal year. There are additional lines in the formatted Balance Sheet form to allow for authorized alternate presentations.

Answer 1

Explanation:

Easton company income statement of 31 December

Sales revenue                                    $877,105

Interest income                                  $5,500

Total revenue                                    $882,605

Less:  operating expenses

Rent expense  $59,900

Wage expenses $529,000  

Supplies expense $ 40,000  

Utilities expense $8,000  

Depreciation expenses $ 150,000

Total expenses                                       -$786,900

Net income                                             $95,705

Therefore the retained earning ending balance is

retained earnings opening = $127,145

Current net income  = $95,705

Less: Dividend = -$7,000

The Retained earnings closing = $215,850

Balance sheet of December 31,2018

Current asset

cash $88,665  

accounts receivable $232,000  

supplies $17,000  

Total current assets                                   $337,665

Fixed assets  

Equipment = $395,000  

accumulated depreciation = (224,260)

Net fixed assets                                           $170,740

Total assets                                                  $508,405

Liabilities and shareholders equity  

current liabilities  

Accounts payable $72,555

common shareholders equity  

Capital stock $220,000

Retained earnings $215,850

Total liabilities and equity                            $508,405