The following account balances appear in the 2018 adjusted trial balance of Blue Devils Corporation: Cash, $4,800; Accounts Receivable, $8,800; Supplies, $18,800; Equipment, $118,000; Accumulated Depreciation, $44,000; Accounts Payable, $25,800; Salaries Payable, $15,800; Common Stock, $58,000; and Retained Earnings. Prepare the December 31, 2018, classified balance sheet including the correct balance for retained earnings.

Question

Business

Genevieve Alvarado

3 July, 11:45

The following account balances appear in the 2018 adjusted trial balance of Blue Devils Corporation: Cash, $4,800; Accounts Receivable, $8,800; Supplies, $18,800; Equipment, $118,000; Accumulated Depreciation, $44,000; Accounts Payable, $25,800; Salaries Payable, $15,800; Common Stock, $58,000; and Retained Earnings. Prepare the December 31, 2018, classified balance sheet including the correct balance for retained earnings.

+5

Answers (1)

Know the Answer?

Kaelyn Bush · Answer 1

Cash 4,800

Accounts Receivable 8,800

Supplies 18,800

Total Current 32,200

Equipment 118,000

Acc Depreciation (44,000)

Total non-current 74,000

Total assets 106,200

Accounts Payable 25,800

Salaries Payable 15,800

Total Liabilities 41,600

Common Stock 58,000

Retained Earnins 6,400

Total Equity 64,600

Total Assets + Liab 106,200

Explanation:

We solve this by appling the basic accounting equation:

Assets = Liabilties + Equity

First we solve for total assets.

Then we solve for the total amount of equity

and finally we clear for retained earnigns.

Cash 4,800

Accounts Receivable 8,800

Supplies 18,800

Total Current 32,200

Equipment 118,000

Acc Depreciation (44,000)

Total non-current 74,000

Total assets 106,200

Accounts Payable 25,800

Salaries Payable 15,800

Total Liabilities 41,600

Common Stock 58,000

Retained Earnins (64,600 - 58,000) = 6,400

Total Equity (106,200 - 41,600) = 64,600

Total Assets + Liab 106,200