Accounts payable $281,700 Prepaid insurance $6,800 Property and equipment 672,500 Contributed capital 380,600 Cost of service expense 183,600 Other revenue 114,100 Supplies inventory 216,900 Deferred revenue 83,600 Service revenue 904,000 Depreciation expense 57,750 Bonds payable 229,600 Accounts receivable 607,550 Interest receivable 4,300 Rent expense 30,500 Retained earnings 187,400 Cash 351,340 Notes payable 356,040 Accrued liabilities 23,400 Investments 146,400 Prepaid rent 11,200 Accumulated depreciation 128,900 Administrative and general expense (includes interest, utilities, etc.) 64,300 Supplies expense 336,200 Income tax payable 0 Based on the following data for Checkmate Company, prepare a Statement of Retained Earnings and demonstrate that the accounting equation remains in balance after the retained earnings account has been updated. (Assume that the company pays  no dividends.)  These amounts reflect balances at the end of 2020, after adjustments, but before the calculation of income tax expense.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounts payable

$281,700

Prepaid insurance

$6,800

Property and equipment

672,500

Contributed capital

380,600

Cost of service expense

183,600

Other revenue

114,100

Supplies inventory

216,900

Deferred revenue

83,600

Service revenue

904,000

Depreciation expense

57,750

Bonds payable

229,600

Accounts receivable

607,550

Interest receivable

4,300

Rent expense

30,500

Retained earnings

187,400

Cash

351,340

Notes payable

356,040

Accrued liabilities

23,400

Investments

146,400

Prepaid rent

11,200

Accumulated depreciation

128,900

Administrative and general expense (includes interest, utilities, etc.)

64,300

Supplies expense

336,200

Income tax payable

0

Based on the following data for Checkmate Company, prepare a Statement of Retained Earnings and demonstrate that the accounting equation remains in balance after the retained earnings account has been updated. (Assume that the company pays  no dividends.)
 These amounts reflect balances at the end of 2020, after adjustments, but before the calculation of income tax expense.

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