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30 July, 10:15

The following account balances appear in the 2021 adjusted trial balance of Blue Devils Corporation:

Cash, $3,800;

Accounts Receivable, $7,800;

Supplies, $17,800;

Equipment, $108,000;

Accumulated Depreciation, $39,000;

Accounts Payable, $24,800;

Salaries Payable, $14,800;

Common Stock, $48,000; and Retained Earnings,.

Required:

1. Prepare the December 31, 2021, classified balance sheet including the correct balance for retained earnings. (Amounts to be deducted should be entered with minus sign.)

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Answers (1)
  1. 30 July, 13:47
    0
    Answer and Explanation:

    The preparation of the classified balance sheet is presented below:

    Blue Devils Corporation

    Balance Sheet

    Dec 31, 2021

    Assets Amount ($) Liabilities and shareholder equity Amount ($)

    Current assets: Current liabilities

    cash $3,800 Accounts payable $24,800

    Accounts receivable $7,800 Salaries payable $14,800

    Supplies $17,800

    Total current assets $29,400 Total current liabilities $39,600

    Long-term assets Stockholders equity

    Equipment $108,000 Common stock $48,000

    Accumulated depreciation - 39,000 Retained earnings $10,800

    Total assets $98,400 Total liabilities and stockholders equity $98,400

    We find the retained earning balance by applying the accounting equation which is shown below:

    Assets = Liabilities + common stock + retained earnings

    $98,400 = $39,600 + $48,000 + retained earning

    So, the retained earning is $10,800
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