Question

The following account balances appear in the 2021 adjusted trial balance of Blue Devils Corporation: Cash, $3,300; Accounts Receivable, $7,300; Supplies, $17,300; Equipment, $103,000; Accumulated Depreciation, $36,500; Accounts Payable, $24,300; Salaries Payable, $14,300; Common Stock, $43,000; and Retained Earnings.

Required:
Prepare the December 31, 2021, classified balance sheet including the correct balance for retained earnings.

Answer 1

Answer and Explanation:

The preparation of the classfied balance sheet is presented below:

Assets Liabilities

Current assets Current liabilities

Cash $3,300 Account payable $24,300

Account receivable $7,300 Salaries payable $14,300

Supplies $17,300

Total current assets $27,900 Total current liabilities $38,600

Fixed assets Stockholder equity

Equipment $103,000 Common stock $43,000

Less: accumulated dep -$36,500 Retained earnings $12,800 (bal.fig)

Net equipment $66,500

Total fixed assets $66,500 Total stock holder equity $55,800

Total assets $94,400 Total liabilities & stock equity $94,400