Question

Use EMBG's adjusted trial balance to EMBG's balance sheet for the current year-end

EMBG CORPORATION
Adjusted Trial Balance
For Year Ending December 31, 2016
Debit Credit
Cash 44,000
Accounts receivable 28,000
Equipment 376,000
Accumulated depreciation 72,000
Notes payable 60,000
Common stock 130,000
Retained earnings 62,000
Service fees earned 326,000
Rent expense 44,000
Salaries expense 116,000
Depreciation expense 42,000
Totals $650,000 $650,000

Answer 1

EMBG Corporation

Balance Sheet

For year ending December 31, 2016

Assets: $376,000

• Cash $44,000
• Accounts receivable $28,000
• Equipment, net $304,000

Liabilities

• Notes payable $60,000

Equity

• Common stock $130,000
• Retained earnings $186,000

Total liabilities + equity $376,000

net income = $326,000 - $44,000 - $116,000 - $42,000 = $124,000

retained earnings = previous balance + net income = $62,000 + $124,000 = $186,000