Question

Hair​ Stylists's adjusted trial balance and statement of retained earnings follow:

Daniel Hair Stylists Adjusted Trial Balance December 31, 2018

Account Balance Debit Credit
Cash $1,000
Accounts Receivable 900
Office Supplies 600
Equipment 19,700
Accumulated Depreciation - Equipment $2,000
Accounts Payable 900
Interest Payable 550
Notes Payable 3,400
Common Stock 10,650
Dividends 700
Service Revenue 14,100
Rent Expense 5,200
Supplies Expense 100
Depreciation Expense - Equipment 2,000
Interest Expense 1,400
Total $31,600 $31,600



Daniel Hair Stylists Statement of Retained Earnings Year Ended December 31, 2018:

Retained Earnings, January 1, 2018 $0
Net Income for the year 5,400
5,400
Dividends (700)
Retained Earnings, December 31, 2018 $4,700

Required:
Prepare Daniel's classified balance sheet at December 31, 2018. Assume the Notes Payable is due on December 1, 2025. Use the report form.

Answer 1

Daniel Hair Stylists

Balance Sheet

For the year ended December 31, 2018

Assets

Current assets

• Cash $1,000
• Accounts Receivable $900
• Office Supplies $600

Total current assets $2,500

Non-current assets

• Equipment, net $19,700
• Accumulated depreciation ($2,000) $17,700

Total non-current assets $17,700

Total assets $20,200

Liabilities

Current liabilities

• Accounts Payable $900
• Interest Payable $550

Total current liabilities $1,450

Total long term liabilities $3,400

Total liabilities $4,850

Owner's Equity

Owner's equity

• Retained earnings $4,700
• Common stock $10,650

Total owner's equity $15,350

Total liabilities and owner's equity $20,200