The accounting staff at Marvelous Enterprises prepares monthly financial statements. At the end of April, the company”s ledger accounts have the following balances. All adjusting entries have been made and the next step is to prepare the financial statements. The company has 18,200 shares of stock outstanding.
|
Accounts payable |
$17,000 |
Land |
$45,000 |
|
Accounts receivable |
14,700 |
Long term notes payable |
33,000 |
|
Accumulated depreciation |
13,100 |
Merchandise inventory |
12,480 |
|
Buildings |
50,000 |
Notes payable, current portion |
14,200 |
|
Cash |
10,360 |
Patents |
3,300 |
|
Contributed capital38,770 |
38,770 |
Prepaid insurance |
1,100 |
|
Copyrights and trademarks |
5,000 |
Retained earnings, March 31 |
8,400 |
|
Cost of goods sold |
15,050 |
Sales revenue |
26,000 |
|
Depreciation expense |
1,100 |
Supplies |
3,570 |
|
Dividends declared |
1,200 |
Supplies expense |
1,300 |
|
Income tax expense |
1,060 |
Wage expense |
1,500 |
|
Insurance expense |
550 |
Wages payable |
17,700 |
|
Interest expense |
900 |
Prepare a classified balance sheet in proper format. (Show land separately.) Use a three line heading on the statement that includes (1) the name of the company, (2) the name of the statement, and (3) the appropriate date. Explain how you determined the April 30 balance in Retained Earnings.