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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.

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  1. 3 July, 13:08
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    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
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