O. Tybalt invested $7,000 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $122,100). Tybalt Construction is required to make a $9,000 payment on its long-term notes payable during 2018. Required:1a. Prepare the income statement for the calendar-year 2017.1b. Prepare the statement of owner's equity for the calendar-year 2017.1c. Prepare the classified balance sheet at December 31, 2017.2. Prepare the necessary closing entries at December 31, 2017.3. Use the information in the financial statements to compute the following ratios: TYBALT CONSTRUCTIONAdjusted Trial BalanceDecember 31, 2017No.Account TitleDebitCredit$ 7,00024,0008,4007,50050,000101 Cash104 Short-term investments126 Supplies128 Prepaid insurance167 Equipment168 Accumulated depreciation-Equipment173 Building174 Accumulated depreciation-Building$ 25,000174,00058,000183 Land53,140201 Accounts payable203 Interest payable208 Rent payable210 Wages payable213 Property taxes payable233 Unearned professional fees251 Long-term notes payable301 o. Tybalt, Capital302 o. Tybalt, Withdrawals16,0002,2003,2002,1001,5008,00068,500129,10010,000401 Professional fees earned102,000 406 Rent earned18,0002,4002,200407 Dividends earned409 Interest earned606 Depreciation expense-Building612 Depreciation expense-Equipment623 Wages expense633 Interest expense12,7607,50031,0005,100637 Insurance expense8,400640 Rent expense12,800652 Supplies expense5,200682 Postage expense2,400683 Property taxes expense684 Repairs expense688 Telephone expense690 Utilities expense4,9007,5003,0003,600Totals$438,200$438,200

Final Accounts Final accounts are prepared by a company at the end of a fiscal year. It includes…

Answered: 1a. Prepare the income statement for…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 4MCQ

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O. Tybalt invested $7,000 cash in the business during year 2017 (the December 31, 2016, credit balance of the O. Tybalt, Capital account was $122,100). Tybalt Construction is required to make a $9,000 payment on its long-term notes payable during 2018.

Required:
1a. Prepare the income statement for the calendar-year 2017.
1b. Prepare the statement of owner's equity for the calendar-year 2017.
1c. Prepare the classified balance sheet at December 31, 2017.
2. Prepare the necessary closing entries at December 31, 2017.
3. Use the information in the financial statements to compute the following ratios:

TYBALT CONSTRUCTION
Adjusted Trial Balance
December 31, 2017
No.
Account Title
Debit
Credit
$ 7,000
24,000
8,400
7,500
50,000
101 Cash
104 Short-term investments
126 Supplies
128 Prepaid insurance
167 Equipment
168 Accumulated depreciation-Equipment
173 Building
174 Accumulated depreciation-Building
$ 25,000
174,000
58,000
183 Land
53,140
201 Accounts payable
203 Interest payable
208 Rent payable
210 Wages payable
213 Property taxes payable
233 Unearned professional fees
251 Long-term notes payable
301 o. Tybalt, Capital
302 o. Tybalt, Withdrawals
16,000
2,200
3,200
2,100
1,500
8,000
68,500
129,100
10,000
401 Professional fees earned
102,000

406 Rent earned
18,000
2,400
2,200
407 Dividends earned
409 Interest earned
606 Depreciation expense-Building
612 Depreciation expense-Equipment
623 Wages expense
633 Interest expense
12,760
7,500
31,000
5,100
637 Insurance expense
8,400
640 Rent expense
12,800
652 Supplies expense
5,200
682 Postage expense
2,400
683 Property taxes expense
684 Repairs expense
688 Telephone expense
690 Utilities expense
4,900
7,500
3,000
3,600
Totals
$438,200
$438,200

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.

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