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E4-22
Prepare financial statements from adjusted trial balance.
The adjusted trial balance for Ryan Company is given below
Instructions
Prepare the income and retained earnings statements for the year and the classified balance sheet at August 31.
The trial balances shown below are before and after adjustment for Ryan Company at the end of its fiscal year.
| RYAN COMPANY Trial Balance August 31, 2017 |
| | Before Adjustment | After Adjustment |
| | Dr. | Cr. | Dr. | Cr. |
| Cash | $10,900 | | $10,900 | |
| Accounts Receivable | 8,800 | | 9,400 | |
| Supplies | 2,500 | | 500 | |
| Prepaid Insurance | 4,000 | | 2,500 | |
| Equipment | 16,000 | | 16,000 | |
| Accumulated DepreciationEquipment | | $ 3,600 | | $ 4,800 |
| Accounts Payable | | 5,800 | | 5,800 |
| Salaries and Wages Payable | | 0 | | 1,100 |
| Unearned Rent Revenue | | 1,800 | | 800 |
| Common Stock | | 10,000 | | 10,000 |
| Retained Earnings | | 5,500 | | 5,500 |
| Dividends | 2,800 | | 2,800 | |
| Service Revenue | | 34,000 | | 34,600 |
| Rent Revenue | | 12,100 | | 13,100 |
| Salaries and Wages Expense | 17,000 | | 18,100 | |
| Supplies Expense | 0 | | 2,000 | |
| Rent Expense | 10,800 | | 10,800 | |
| Insurance Expense | 0 | | 1,500 | |
| Depreciation Expense | 0 | | 1,200 | |
| | $72,800 | $72,800 | $75,700 | $75,700 |
Answer & Explanation
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