Question

Web Advertising Services Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit Cash $13,800 Accounts Receivable 12,500 Office Supplies 6,500 Furniture 17,700 Accumulated Depreciation—Furniture $14,300 Building 51,000 Accumulated Depreciation—Building 38,900 Land 18,700 Accounts Payable 10,500 Salaries Payable 7,800 Unearned Revenue 16,000 Common Stock 31,000 Retained Earnings 29,350 Dividends 19,200 Service Revenue 43,900 Salaries Expense 29,500 Supplies Expense 8,800 Depreciation Expense—Furniture 550 Depreciation Expense—Building 2,700 Advertising Expense 10,800 Total $191,750 $191,750

Answer 1

Please refer below

Step-by-step explanation:

Income statement for the year ending Dec 31, 2016:

Description Amount

Service revenue (A) $43,900

Expenses:

Salaries expense $29,500

Supplies expense $8,800

Depreciation expense -furniture $550

Depreciation expense -building $2,700

Advertising expense $10,800

Total expenses (B) $52,350

Net Loss (A)-(B) -$8,450

Statement of retained earnings for the year ended Dec 31, 2016:

Description Amounts ($)

Opening Retained Earnings $29,350

Less: Net Loss -$8,450

Less: Dividend paid -$18,200

Closing Retained Earnings $1,700

Balance sheet for the year ended Dec 31, 2016:

Assets Amount ($) Liabilities Amount($)

Cash $13,800 Accounts Payable $10,500

Accounts Receivable $12,500 Salaries payable $7,800

Office Supplies $6,500 Unearned revenue $16,000

Land $18,700 Stockholders' Equity

Net furniture $3,400 Common Stock $31,000

Net buildings $12,100 Retained Earnings $1,700

Total Assets $67,000

Total Liabilities and Stockholders' Equity $67,000