Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4 The adjusted...

1A

Tybalt Construction
Income Statement
For Year Ended December 31
Revenues
Professional fees earned	99,000
Rent earned	16,500
Dividends earned	2,900
Interest Earned	3,000
Total Revenues		121,400
Expenses
Depreciation Expense - Building	11,220
Depreciation Expense - Equipment	9,000
Wages Expense	30,500
Interest Expense	3,300
Insurance Expense	9,800
Rent Expense	13,000
Supplies Expense	5,400
Postage Expense	2,600
Property taxes Expense	4,600
Repairs Expense	7,600
Telephone Expense	2,100
Utilities Expense	4,200
Total Expenses		103,320
Net Income		18,080

1B

Tybalt Construction
Statement of Retained Earnings
For Year Ended December 31
Retained Earnings, Dec. 31	126,500
Add: Net Income	18,080
	144,580
Less: Dividends	11,700
Retained Earnings, Dec. 31	132,880

1C

Tybalt Construction
Balance Sheet
Dec. 31
Assets
Current assets
Cash	7,500
Short-term investments	25,000
Supplies	9,200
Prepaid Insurance	8,700
Total Current Assets		50,400
Plant Assets
Equipment	60,000
Accumulated Depreciation - Equipment	30,000	30,000
Building	153,000
Accumulated Depreciation - Building	51,000	102,000
Land		60,280
		192,280
Total Assets		242,680
Liabilities
Current liabilities
Accounts payable	16,500
Interest payable	2,100
Rent Payable	3,700
Wages Payable	2,600
Property taxes payable	1,200
Unearned professional fees	7,700
Current portion of Long-term notes payable	7,500
Total current liabilities		41,300
Long term notes payable		61,000
Total Liabilities		102,300
Equity
Common stock	7,500
Retained Earnings	132,880
Total Equity		140,380
Total Liabilities and equity		242,680

2

No.	Date	General Journal	Debit	Credit
1	Dec. 31	Professional fees earned	99,000
		Rent earned	16,500
		Dividends earned	2,900
		Interest Earned	3,000
		Income summary		121,400
2	Dec. 31	Income Summary	103,320
		Depreciation Expense - Building		11,220
		Depreciation Expense - Equipment		9,000
		Wages Expense		30,500
		Interest Expense		3,300
		Insurance Expense		9,800
		Rent Expense		13,000
		Supplies Expense		5,400
		Postage Expense		2,600
		Property taxes Expense		4,600
		Repairs Expense		7,600
		Telephone Expense		2,100
		Utilities Expense		4,200
3	Dec. 31	Income Summary	18,080
		Retained Earnings		18,080
4	Dec. 31	Retained Earnings	11,700
		Dividends		11,700