Purchase Solution

Balance Sheets and Trial Balance Sheet Preparation

Not what you're looking for?

Ask Custom Question

Preparing a Balance Sheet

The balance sheet items of the Prosser Company as of December 31, 2002, follow in random order. You are to prepare a balance sheet for the company, using a similar sequence for assets as illustrated in Exhibit 2-9. You must compute the amount for Retained Earnings.

Financial Statement Preparation

Tutors For Rent Inc performs adjusting entries every month but closes its accounts only at year end. The company's year-end adjusted trial balance dated December 31, 2002 was:

Tutors for Rent Inc
Adjusted Trial Balance
December 31, 2002

Cash $91,100
Accounts Receivable $4,500
Supplies $300
Equipment $12,000
Accumulated depreciation : Equipment $5,000
Accounts payable $1500
Income taxes payable $3,500
Capital Stock $25,000
Retained earnings $45,000
Dividends $2,000
Tutoring Revenue Earned $96,000
Salary Expense $52,000
Supply Expense $1200
Advertising Expense $300
Depreciation expense: equipment $1000
Income Taxes Expense $11,600 Total 176K 176K

A. Prepare an income statement and statement of retained earnings for the year ended December 31, 2002. Also prepare the company's balance sheet dated December 31, 2002.

B. Does the company appear to be liquid? Please explain answer.

C. Has the company been profitable in the past? Explain

Purchase this Solution

Solution Summary

This question involves the fundamentals of accounting

Purchase this Solution


Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations