Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Insurance expense Stark, Capital Services revenue $ 27,000 Accumulated depreciation-Buildings 4,100 Accounts receivable 820 Utilities expense 9,500 Interest payable 2,000 Unearned revenue 42,000 Supplies expense 9,100 Buildings 3,400 Stark, Withdrawals 120,800 Depreciation expense-Buildings 100,000 Supplies $ 31,000 7,200 2,900 740 1,600 520 200,000 11,000 10,000 1,600

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Stark company has the following adjusted accounts and normal balances at its December 31 year-end. Use the adjusted trial balance accounts and balances at its December 31 year-end for Stark Company to prepare an adjusted trial balance.

**Financial Statement Components**

Below is a list of financial statement components and their respective values. These items are typically used in the preparation of financial statements such as the balance sheet and the income statement.

- **Liabilities and Equity:**
  - Notes payable: $27,000
  - Accounts payable: $9,500
  - Wages payable: $2,000
  - Interest payable: $740
  - Unearned revenue: $1,600
  - Stark, Capital: $120,800
  - Stark, Withdrawals: $11,000

- **Assets:**
  - Cash: $42,000
  - Prepaid insurance: $4,100
  - Accounts receivable: $7,200
  - Buildings: $200,000
  - Supplies: $1,600

- **Expenses:**
  - Interest expense: $820
  - Utilities expense: $2,900
  - Wages expense: $9,100
  - Insurance expense: $3,400
  - Supplies expense: $520
  - Depreciation expense—Buildings: $10,000

- **Revenue:**
  - Services revenue: $100,000

- **Contra Asset Account:**
  - Accumulated depreciation—Buildings: $31,000

These figures provide an overview of a company's financial position, showing its liabilities, assets, equity, expenses, and revenue streams. It also includes contra accounts like depreciation, which accounts for the reduction in value of buildings over time.
Transcribed Image Text:**Financial Statement Components** Below is a list of financial statement components and their respective values. These items are typically used in the preparation of financial statements such as the balance sheet and the income statement. - **Liabilities and Equity:** - Notes payable: $27,000 - Accounts payable: $9,500 - Wages payable: $2,000 - Interest payable: $740 - Unearned revenue: $1,600 - Stark, Capital: $120,800 - Stark, Withdrawals: $11,000 - **Assets:** - Cash: $42,000 - Prepaid insurance: $4,100 - Accounts receivable: $7,200 - Buildings: $200,000 - Supplies: $1,600 - **Expenses:** - Interest expense: $820 - Utilities expense: $2,900 - Wages expense: $9,100 - Insurance expense: $3,400 - Supplies expense: $520 - Depreciation expense—Buildings: $10,000 - **Revenue:** - Services revenue: $100,000 - **Contra Asset Account:** - Accumulated depreciation—Buildings: $31,000 These figures provide an overview of a company's financial position, showing its liabilities, assets, equity, expenses, and revenue streams. It also includes contra accounts like depreciation, which accounts for the reduction in value of buildings over time.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

Can you the adjusted accounts for Stark Company to prepare the income statement and ( statement of owner's equity for the year ended December 31 and balance sheet at December 31. The Stark, Capital account balance was $120,800 on December 31 of the prior year, and there were no owner investments in the current year.

 

Solution
Bartleby Expert
SEE SOLUTION
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education