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sactions during 2020 follow: Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. Purchased equipment for $18,000 cash on July 1, 2020. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest paid with cash. Note: Wages are paid in cash. Purchased additional small tools, $3,000 cash. Collected accounts receivable, $8,000. Paid accounts payable, $11,000. Purchased $10,000 of supplies on account. Received a $3,000 deposit on work to start January 15, 2021. Declared a cash dividend on Decemb

sactions during 2020 follow: Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable. Purchased equipment for $18,000 cash on July 1, 2020. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest paid with cash. Note: Wages are paid in cash. Purchased additional small tools, $3,000 cash. Collected accounts receivable, $8,000. Paid accounts payable, $11,000. Purchased $10,000 of supplies on account. Received a $3,000 deposit on work to start January 15, 2021. Declared a cash dividend on Decemb

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transactions during 2020 follow:

  1. Borrowed $20,000 cash on July 1, 2020, signing a one-year, 10 percent note payable.
  2. Purchased equipment for $18,000 cash on July 1, 2020.
  3. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year.
  4. Earned $70,000 in revenues for 2020, including $14,000 on credit and the rest in cash.
  5. Incurred $27,000 in wages expense and $8,000 in miscellaneous expenses for 2020, with $7,000 on credit and the rest paid with cash. Note: Wages are paid in cash.
  6. Purchased additional small tools, $3,000 cash.
  7. Collected accounts receivable, $8,000.
  8. Paid accounts payable, $11,000.
  9. Purchased $10,000 of supplies on account.
  10. Received a $3,000 deposit on work to start January 15, 2021.
  11. Declared a cash dividend on December 1, $10,000; paid on December 31.

 

Data for adjusting entries:

  1. Supplies of $4,000 and small tools of $8,000 were counted on December 31, 2020 (debit Miscellaneous Expenses).
  2. Depreciation for 2020, $2,000.
  3. Interest accrued on notes payable (to be computed).
  4. Wages earned since the December 24 payroll but not yet paid, $3,000.
  5. Income tax expense was $4,000, payable in 2021.

*** I am having issues with balancing the sheet.

Prepare a balance sheet. (Items to be deducted must be indicated with a minus sign.) FURNITURE REFINISHERS, INC. Balance Sheet At December 31, 2020 Assets Liabilities Current assets: Current liabilities: Accounts receivable $ 18,000 Accounts payable 11,000 Cash 76,000 Notes payable 20,000 Supplies 1,000 Wages payable 3,000 Small tools 4,000 Interest payable 1,000 Accounts payable Income taxes payable 4,000 Unearned revenue 3,000 Total current assets 99,000 Total current liabilities 42,000 Equipment 18,000 Stockholders' equity Accumulated depreciation (2,000) Common stock $ 7,000 Other operating expenses 7,000 Additional paid-in capital 13,000 Equipment - Net book value 23,000 Retained earnings 10,000 Total stockholders' equity 30,000 Total assets $ 122,000 Total liabilities and stockholders' equity $ 72,000
Transcribed Image Text:Prepare a balance sheet. (Items to be deducted must be indicated with a minus sign.) FURNITURE REFINISHERS, INC. Balance Sheet At December 31, 2020 Assets Liabilities Current assets: Current liabilities: Accounts receivable $ 18,000 Accounts payable 11,000 Cash 76,000 Notes payable 20,000 Supplies 1,000 Wages payable 3,000 Small tools 4,000 Interest payable 1,000 Accounts payable Income taxes payable 4,000 Unearned revenue 3,000 Total current assets 99,000 Total current liabilities 42,000 Equipment 18,000 Stockholders' equity Accumulated depreciation (2,000) Common stock $ 7,000 Other operating expenses 7,000 Additional paid-in capital 13,000 Equipment - Net book value 23,000 Retained earnings 10,000 Total stockholders' equity 30,000 Total assets $ 122,000 Total liabilities and stockholders' equity $ 72,000
Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows: Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Credit Cash 5,000 4,000 2,000 6,000 Accounts receivable Supplies Small tools Equipment Accumulated depreciation (on equipment) Other assets (not detailed to simplify) Accounts payable Dividends payable Notes payable 9,000 7,000 Wages payable Interest payable Income taxes payable Unearned revenue Common stock (60,000 shares, $0.10 par value) Additional paid-in capital Retained earnings 6,000 9,000 4,000 Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses Totals 26,000 26,000
Transcribed Image Text:Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, was as follows: Furniture Refinishers, Inc. Trial Balance on January 1, 2020 Account Titles Debit Credit Cash 5,000 4,000 2,000 6,000 Accounts receivable Supplies Small tools Equipment Accumulated depreciation (on equipment) Other assets (not detailed to simplify) Accounts payable Dividends payable Notes payable 9,000 7,000 Wages payable Interest payable Income taxes payable Unearned revenue Common stock (60,000 shares, $0.10 par value) Additional paid-in capital Retained earnings 6,000 9,000 4,000 Service revenue Depreciation expense Wages expense Interest expense Income tax expense Miscellaneous expenses Totals 26,000 26,000
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