The December 31, 2016, adjusted trial balance for the Blueboy Cheese Corporation
Question # 00107288
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Updated on: 09/24/2015 07:54 PM Due on: 10/24/2015
The December 31, 2016, adjusted trial balance for the Blueboy Cheese Corporation is presented below. |
| Account Title | Debits | Credits |
| Cash | 21,000 | |
| Accounts receivable | 300,000 | |
| Prepaid rent | 10,000 | |
| Inventory | 50,000 | |
| Office equipment | 600,000 | |
| Accumulated depreciation—office equipment | 250,000 | |
| Accounts payable | 60,000 | |
| Note payable (due in six months) | 60,000 | |
| Salaries payable | 8,000 | |
| Interest payable | 2,000 | |
| Common stock | 400,000 | |
| Retained earnings | 100,000 | |
| Sales revenue | 800,000 | |
| Cost of goods sold | 480,000 | |
| Salaries expense | 120,000 | |
| Rent expense | 30,000 | |
| Depreciation expense | 60,000 | |
| Interest expense | 4,000 | |
| Advertising expense | 5,000 | |
| Totals | 1,680,000 | 1,680,000 |
1) A. Prepare an Income Statement for the year ending December 31, 2016.
1) B. Prepare a classified balance sheet as of December 31, 2016. Indicate amounts deducted with minus sign.
2) Prepare the necessary closing entries at December 31, 2016
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Solution: The December 31, 2016, adjusted trial balance for the Blueboy Cheese Corporation