Solved

Based on the Following Trial Balance for Barry's Automotive Shop

Question 1

Essay

Based on the following trial balance for Barry's Automotive Shop, prepare an income statement, statement of retained earnings, and a balance sheet. There were no additional stock issuances during the year.
Barry's Automotive Shop
Trial Balance
December 31
 Cash $12,500 Accounts receivable 1,500 Supplies 500 Repair shop equipment 27,000 Service truck 33,000 Accounts payable $2,600 Common Stock 30,000 Retained Earnings 8,525 Dividends 36,000 Service revenue 125,00 Supplies expense 3,425 Rent expense 18,000 Utilities expense 5,000 Gas expense 7,200 Wages expense 22,000 Totals $166,125$166,125\begin{array}{lr}\text { Cash } & \$ 12,500 \\\text { Accounts receivable } &1,500 \\\text { Supplies } & 500 \\\text { Repair shop equipment } & 27,000 \\\text { Service truck } & 33,000\\\text { Accounts payable } && \$ 2,600 \\\text { Common Stock } && 30,000 \\\text { Retained Earnings } && 8,525 \\\text { Dividends } & 36,000\\\text { Service revenue } & & 125,00 \\\text { Supplies expense } & 3,425 & \\\text { Rent expense } & 18,000&\\\text { Utilities expense } & 5,000 \\\text { Gas expense } & 7,200 \\\text { Wages expense } & 22,000 \\\text { Totals } & \$ 166,125&\$166,125\end{array}

Correct Answer:

verifed

Verified

Related Questions

Q7: Mary Sunny, the sole stockholder, began business

Q9: For each of the following accounts,

Q10: For each of the accounts in

Q13: The_ is found by determining the difference

Q29: A column in journals and ledger accounts

Q97: The higher a company's debt ratio,the lower

Q100: Which of the following is not a

Q105: Stark Co.has liabilities of $105 million and

Q113: The heading on every financial statement lists

Q194: An income statement reports the revenues earned