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Balance Sheet Preparation for Smith Company

See attached file.

AC 550
Project I
Balance Sheet

Debits Credits
Cash ?
Office Supplies 2640
Prepaid Insurance 2,200
Equipment 105,600
Accumulated Depreciation-Equipment 8,800
Trademarks 2,090
Accounts Payable 22,000
Wages Payable 1,100
Unearned Service Revenue 4,400
Bonds Payable due 2017 19,800
Common Stock 22,000
Retained Earnings 55,000
Service Revenue 22,000
Wages Expense 19,800
Insurance Expense 3,080
Rent Expense 2,640
Interest Expense 1,980 _______
Totals ? ?

Additional information:
1. Net loss for the year was $5,500.
2. No dividends were declared during 2010.

Instructions
Prepare a classified balance sheet for Smith Company as of December 31, 2010.

Attachments

Solution Preview

See the Excel file for the balance sheet.

First the income statement components need to be removed from the balance sheet (bottom five lines) ...

Solution Summary

This solution prepares a balance sheet.

$2.19