The adjusted trial balance for Tybalt Construction on December 31 of the current year follows. TYBALT CONSTRUCTIONAdjusted Trial BalanceDecember 31No.Account TitleDebit Credit101Cash$5,000 104Short-term investments 23,000 126Supplies 8,100 128Prepaid insurance 7,000 167Equipment 40,000 168Accumulated depreciation—Equipment $20,000 173Building 150,000 174Accumulated depreciation—Building 50,000 183Land 55,000 201Accounts payable 16,500 203Interest payable 2,500 208Rent payable 3,500 210Wages payable 2,500 213Property taxes payable 900 236Unearned revenue 7,500 244Current portion of long-term note payable 7,000 251Long-term notes payable 60,000 307Common stock 5,000 318Retained earnings 121,400 319Dividends 13,000 404Services revenue 97,000 406Rent revenue 14,000 407Dividends revenue 2,000 409Interest revenue 2,100 606Depreciation expense—Building 11,000 612Depreciation expense—Equipment 6,000 623Wages expense 32,000 633Interest expense 5,100 637Insurance expense 10,000 640Rent expense 13,400 652Supplies expense 7,400 682Postage expense 4,200 683Property taxes expense 5,000 684Repairs expense 8,900 688Telephone expense 3,200 690Utilities expense 4,600 Totals$411,900 $411,900 Oro Tybalt invested $5,000 cash in the business in exchange for common stock during the year. The Retained Earnings account balance was $121,400 on December 31 of the prior year.Required: Prepare the income statement for the current year ended December 31. Prepare the statement of retained earnings for the current year ended December 31. . Prepare the classified balance sheet at December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The adjusted trial balance for Tybalt Construction on December 31 of the current year follows.

TYBALT CONSTRUCTIONAdjusted Trial BalanceDecember 31No.Account TitleDebit Credit101Cash$5,000 104Short-term investments 23,000 126Supplies 8,100 128Prepaid insurance 7,000 167Equipment 40,000 168Accumulated depreciation—Equipment $20,000 173Building 150,000 174Accumulated depreciation—Building 50,000 183Land 55,000 201Accounts payable 16,500 203Interest payable 2,500 208Rent payable 3,500 210Wages payable 2,500 213Property taxes payable 900 236Unearned revenue 7,500 244Current portion of long-term note payable 7,000 251Long-term notes payable 60,000 307Common stock 5,000 318Retained earnings 121,400 319Dividends 13,000 404Services revenue 97,000 406Rent revenue 14,000 407Dividends revenue 2,000 409Interest revenue 2,100 606Depreciation expense—Building 11,000 612Depreciation expense—Equipment 6,000 623Wages expense 32,000 633Interest expense 5,100 637Insurance expense 10,000 640Rent expense 13,400 652Supplies expense 7,400 682Postage expense 4,200 683Property taxes expense 5,000 684Repairs expense 8,900 688Telephone expense 3,200 690Utilities expense 4,600 Totals$411,900 $411,900 Oro Tybalt invested $5,000 cash in the business in exchange for common stock during the year. The Retained Earnings account balance was $121,400 on December 31 of the prior year.Required:

Prepare the income statement for the current year ended December 31.

Prepare the statement of retained earnings for the current year ended December 31.

. Prepare the classified balance sheet at December 31.2. Prepare the necessary closing entries at December 31 of the current year.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution