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Wolfpack Construction has the following account balances at the end of the year.

Accounts Balances Equipment $25,000
Accounts payable 2,800
Salaries expense 32,000
Common stock 12,000
Land 17,000
Notes payable 19,000
Service revenue 38,000
Cash 5,800
Retained earnings _______

Required:
Prepare a balance sheet for Wolfpack Construction.

1 Answer

5 votes

Answer:

Find the balance sheet below:

beginning retained earnings=$47,800-$39,800=$8,000

Step-by-step explanation:

Net income for the year =service revenue-salaries expense=$38,000-$32,000=$6,000

retained earnings=net income=$6,000

Wolfpack Construction Balance Sheet as at year end

Non-current assets

equipment $25,000

land $17,000

Total non-current assets $42,000

Current assets:

cash $5,800

total current assets $5,800

Total assets $47,800

Common stock $12,000

retained earnings $6,000

total stockholders' equity $18,000

current liabilities:

accounts payable $2,800

notes payable $19,000

Total liabilities $21,800

Total liabilities and equity $39,800

The difference between the total assets and total equity plus liabilities may be due to beginning retained earnings figure which was not provided

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