Use the adjusted trial balance below for the year ended December 31 2019 to complete the income statement, statement of stock holders equity and balance sheet. ### Acme Consulting, Inc. Financial OverviewBelow is a snapshot of the financial transactions for Acme Consulting, Inc., detailing various debits and credits associated with the company's financial activities.| Account | Debit | Credit ||--------------------------------|--------|---------|| Cash | 32,000 | || Accounts Receivable | 24,000 | || Supplies | 25,600 | || Tractor | 48,000 | || Accum. Depreciation | | 12,000 || Copyright | 64,000 | || Accounts Payable | | 1,600 || Wages Payable | | 960 || Bonds Payable | | 57,600 || Discount on Bonds Payable | 6,400 | || Common Stock | | 35,000 || PIC in Excess of Par - CS | | 5,000 || Retained Earnings | | 9,000 || Cash Dividends | 2,560 | || Sales | | 163,640 || Cost of Goods Sold | 48,000 | || Wages Expense | 32,000 | || Supplies Expense | 1,600 | || Utility Expense | 640 | |### Financial Totals- **Total Debits**: 284,800- **Total Credits**: 284,800#### Key Concepts:1. **Debits and Credits**: These are the two fundamental aspects of every financial transaction in double-entry bookkeeping. - **Debit**: An entry on the left side of the ledger, representing assets or expenses. - **Credit**: An entry on the right side of the ledger, representing liabilities, equity, or income.2. **Balance**: Note that the total debits equal the total credits, maintaining the accounting equation balance: **Assets = Liabilities + Equity**.3. **Depreciation**: Accumulated depreciation shows the total depreciation of a company’s assets over time, reducing the value of the asset.4. **Common Stock and Retained Earnings**: These indicate the ownership equity in the company and the accumulated profits retained for reinvestment

The financial statements of the business include the income statement and balance sheet. The…

Answered: Debit Credit Cash 32,000 Accounts…

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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Use the adjusted trial balance below for the year ended December 31 2019 to complete the income statement, statement of stock holders equity and balance sheet.

### Acme Consulting, Inc. Financial Overview

Below is a snapshot of the financial transactions for Acme Consulting, Inc., detailing various debits and credits associated with the company's financial activities.

| Account | Debit | Credit |
|--------------------------------|--------|---------|
| Cash | 32,000 | |
| Accounts Receivable | 24,000 | |
| Supplies | 25,600 | |
| Tractor | 48,000 | |
| Accum. Depreciation | | 12,000 |
| Copyright | 64,000 | |
| Accounts Payable | | 1,600 |
| Wages Payable | | 960 |
| Bonds Payable | | 57,600 |
| Discount on Bonds Payable | 6,400 | |
| Common Stock | | 35,000 |
| PIC in Excess of Par - CS | | 5,000 |
| Retained Earnings | | 9,000 |
| Cash Dividends | 2,560 | |
| Sales | | 163,640 |
| Cost of Goods Sold | 48,000 | |
| Wages Expense | 32,000 | |
| Supplies Expense | 1,600 | |
| Utility Expense | 640 | |

### Financial Totals
- **Total Debits**: 284,800
- **Total Credits**: 284,800

#### Key Concepts:
1. **Debits and Credits**: These are the two fundamental aspects of every financial transaction in double-entry bookkeeping.
- **Debit**: An entry on the left side of the ledger, representing assets or expenses.
- **Credit**: An entry on the right side of the ledger, representing liabilities, equity, or income.

2. **Balance**: Note that the total debits equal the total credits, maintaining the accounting equation balance: **Assets = Liabilities + Equity**.

3. **Depreciation**: Accumulated depreciation shows the total depreciation of a company’s assets over time, reducing the value of the asset.

4. **Common Stock and Retained Earnings**: These indicate the ownership equity in the company and the accumulated profits retained for reinvestment

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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