Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / The adjusted trial balance for China Tea Company at December 31, 2006 is presented below: Debit Credit Cash 10,500 Accounts receivable 150,000 Allowance for uncollectible accounts 10,000 Prepaid rent 5,000 Inventory 25,000 Equipment 300,000 Accumulated depreciation - equipment 125,000 Accounts payable 20,000 Notes payable - due in three months 30,000 Salaries payable 4,000 Interest payable 1,000 Capital stock 200,000 Retained earnings 50,000 Sales revenue 400,000 Costs of goods sold 180,000 Salaries expense 120,000 Rent expense 15,000 Depreciation expense 30,000 Interest expense 2,000 Bad debt expense 2,500 _______ _______ Totals 840,000 840,000 Prepare a classified balance sheet for China Tea Company as of December 31, 2006
The adjusted trial balance for China Tea Company at December 31, 2006 is presented below:
Debit Credit
Cash 10,500
Accounts receivable 150,000
Allowance for uncollectible accounts 10,000
Prepaid rent 5,000
Inventory 25,000
Equipment 300,000
Accumulated depreciation - equipment 125,000
Accounts payable 20,000
Notes payable - due in three months 30,000
Salaries payable 4,000
Interest payable 1,000
Capital stock 200,000
Retained earnings 50,000
Sales revenue 400,000
Costs of goods sold 180,000
Salaries expense 120,000
Rent expense 15,000
Depreciation expense 30,000
Interest expense 2,000
Bad debt expense 2,500
_______ _______
Totals 840,000 840,000
Prepare a classified balance sheet for China Tea Company as of December 31, 2006.
China Tea Company
Balance Sheet
As on Dec 31, 2006
Assets
Cash.............................................................................10,500
Accounts Receivable.................................150,000
Less Allowance for Uncollectible Accounts....10,000
Accounts Receivable, net.................................................140,000
Inventory.........................................................................25,000
Prepaid Rent.....................................................................5,000
Current Assets..................................................................190,500
Equipment...............................................300,000
Accumulated Depreciation........................125,000
Equipment, Net..................................................................175,000
Total Assets.......................................................................355,500
Liabilities and Stockholders Equity
Accounts Payable....................................................................20,000
Notes Payable.........................................................................30,000
Salaries Payable.....................................................................4,000
Interest Payable.....................................................................1,000
Total Current Liabilities...........................................................55,000
Stockholders Equity
Capital Stock.........................................................................200,000
Retained Earnings..................................................................100,500
Total Liabilities and Stockholders Equity...................................355,500
The net income ( Sales Revenue - Expenses) for the period is 50,500 and is added to the retained earnings
