Professional Documents
Culture Documents
Revenues
Service Revenue $ 9,300
Expenses
Salaries and Wages Expense $ 2,860
Utilities Expense $ 2,100
Rent Expense $ 1,100
Supplies Expense $ 500
Depreciation Expense $ 200
Interest Expense $ 120
Total Expense $ 6,880
Net Income $ 2,420
STABLER COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2015
Total Assets
Liab
Current liabilities
Stockholders' equity
Assets
Current Assets
Cash $ 3,000
Accounts Receivable $ 3,700
Supplies $ 700
Prepaid Rent $ 1,500
Total Current Assets $ 8,900
Property, plan, and equipment
Equipment $ 18,000
Accumulated DepreciationEquipment $ 1,500 $ 16,500
Total Assets $ 25,400
Adjusted Trial
Trial Balance Adjustment Income Statement Balance Sheet
Balance
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash $ 3,000 $ 3,000 $ 3,000
Accounts Receivable $ 2,800 a $ 900 $ 3,700 $ 3,700
Prepaid Rent $ 2,100 b $ 600 $ 1,500 $ 1,500
Supplies $ 1,200 c $ 500 $ 700 $ 700
Equipment $ 18,000 $ 18,000 $ 18,000
Accumulated DepreciationEquipment $ 1,300 d $ 200 $ 1,500 $ 1,500
Accounts Payable $ 2,700 e $ 300 $ 3,000 $ 3,000
Notes Payable $ 10,000 $ 10,000 $ 10,000
Interest Payable f $ 120 $ 120 $ 120
Salaries and Wages Payable g $ 800 $ 800 $ 800
Unearned Service Revenue $ 4,460 a $ 400 $ 4,060 $ 4,060
Common Stock $ 8,200 $ 8,200 $ 8,200
Dividends $ 3,200 $ 3,200 $ 3,200
Service Revenue $ 8,000 a $ 1,300 $ 9,300 h $ 9,300
Salaries and Wages Expense $ 2,060 g $ 800 $ 2,860 i $ 2,860
Utilities Expense $ 1,800 e $ 300 $ 2,100 i $ 2,100
Rent Expense $ 500 b $ 600 $ 1,100 i $ 1,100
Supplies Expense c $ 500 $ 500 i $ 500
Depreciation Expense d $ 200 $ 200 i $ 200
Interest Expense f $ 120 $ 120 i $ 120
Totals $ 34,660 $ 34,660 $ 3,820 $ 3,820 $ 36,980 $ 36,980 $ 6,880 $ 9,300 $ 30,100 $ 27,680
Net Income j $ 2,420 $ 2,420
Totals $ 9,300 $ 9,300 $ 30,100 $ 30,100
Unit Cost (in
Date Explanation Units
US dollars)
b.
Total (in
US
dollars) Date Purchases Cost of Goods Sold
1200 v
1000 v 2016
4635 v August 1
6096 v 5 $ 100 8 $ 800
5200 v 12 $ 103 45 $ 4,635
2100
5980 16 $ 100 4 $ 400
$ 103 44 $ 4,532
19 $ 104 50 $ 5,200
26 $ 105 20 $ 2,100
29 $ 103 1 $ 103
$ 104 45 $ 4,680
31
LIFO
1
5 $ 100 8 $ 800
12 $ 103 45 $ 4,635
16 $ 103 45 $ 4,635
$ 100 3 $ 300
19 $ 104 50 $ 5,200
26 $ 105 20 $ 2,100
29 $ 105 20 $ 2,100
$ 104 26 $ 2,704
31
moving average
2016
August 1
5 $ 100 8 $ 800
12 $ 103 45 $ 4,635
16 $ 102.76 48 $ 4,932
19 $ 104 50 $ 5,200
26 $ 105 20 $ 2,100
29 $ 104.26 46 $ 4,796
31
Balance
$ 100 12 $ 1,200
$ 100 4 $ 400
$ 100 4 $ 400
$ 103 45 $ 4,635
$ 103 1 $ 103
$ 103 1 $ 103
$ 104 50 $ 5,200
$ 103 1 $ 103
$ 104 50 $ 5,200
$ 105 20 $ 2,100
$ 104 5 $ 520
$ 105 20 $ 2,100
$ 104 5 $ 520
$ 105 20 $ 2,100
$ 100 12 $ 1,200
$ 100 4 $ 400
$ 100 4 $ 400
$ 103 45 $ 4,635
$ 100 1 $ 100
$ 100 1 $ 100
$ 104 50 $ 5,200
$ 100 1 $ 100
$ 104 50 $ 5,200
$ 105 20 $ 2,100
$ 100 1 $ 100
$ 104 24 $ 2,496
$ 100 1 $ 100
$ 104 24 $ 2,496
Balance
$ 100 12 $ 1,200
$ 100 4 $ 400
$ 102.76 49 $ 5,035
$ 102.76 1 $ 102.76
$ 103.98 51 $ 5,303
$ 104.26 71 $ 7,403
$ 104.26 25 $ 2,607
$ 104.26 25 $ 2,607
Case III (25)
Required:
Computation
Year Depreciable Cost x Depreciation Rate =
2016 $ 220,000 25%
2017 $ 220,000 25%
2018 $ 220,000 25%
2019 $ 220,000 25%
Total
b. Declining Balance Method
c. Straight-Line Method
Declining Balance Method
End of Year
Annual Depreciation Expense Accumulated Depreciation Book Value Year
$ 55,000 $ 55,000 $ 195,000 2016
$ 55,000 $ 110,000 $ 140,000 2017
$ 55,000 $ 165,000 $ 85,000 2018
$ 55,000 $ 220,000 $ 30,000 2019
$ 220,000
Declining Balance Method
End of Year
Annual Depreciation Expense Accumulated Depreciation Book Value
$ 125,000 $ 125,000 $ 125,000
$ 62,500 $ 187,500 $ 62,500
$ 31,250 $ 218,750 $ 31,250
$ 1,250 $ 220,000 $ 30,000
$ 220,000
2019 adjusted