Balance Sheet:
- - Assets: Equipment $210,000
- - Liabilities: N/A
- - Stockholders’ Equity: N/A
Income Statement:
- - Revenues: N/A
- - Expenses: Depreciation $25,200
Under Balance Sheet:
- Assets: Equipment would be reported on the balance sheet as an asset. The amount would be $210,000 representing the original cost of the equipment.
- Liabilities: There is no information provided about liabilities in the question, so we cannot report any liabilities on the balance sheet.
- Stockholders’ Equity: There is no specific information provided about stockholders' equity, so we cannot report any stockholders' equity on the balance sheet.
Under Income Statement:
- Revenues: The question doesn't provide information about revenues, so we cannot report any revenue on the income statement.
- Expenses: Depreciation would be reported on the income statement as an expense. The amount for the current year is $25,200 which is part of the total depreciation to date of $126,000.
Full question:
The adjusted trial balance for Rowdy Profits Corporation reports that its equipment cost $210,000. For the current year, the company has recorded $25,200 of depreciation, which brings the total depreciation to date to $126,000.
Balance Sheet Income Statement
Assets Revenues
Liabilities Expenses
Stockholders’ Equity
Required:
Using the headings shown above, indicate the location and amounts that would be used to report the three items on the company’s balance sheet and income statement