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Unit3In-ClassActivityPart1-FinancialStatementsPracticeZhaneMcNair.docACC160 – Principles of Financial Accounting I Instructor: Amani U. Davis-Martinez
Chapter 4: Completing the Accounting Cycle
Unit 3 In-Class Activity Financial Statements Practice
Using the information below on the Adjusted Trial Balance, prepare the provided financial statements for Bentley Luxury Car Services. Owner Rose Royce did not make any additional investments in the company during the year.
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Bentley Luxury Car Services Adjusted Trial Balance For the year ended December 31 |
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Cash |
$755,000 |
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Accounts receivable |
64,500 |
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Office supplies |
3,700 |
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Vehicles |
290,000 |
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Accumulated depreciation—Vehicles |
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$180,000 |
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Accounts payable |
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62,700 |
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Notes payable |
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100,000 |
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Rose Royce, Capital |
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505,000 |
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Rose Royce, Withdrawals |
60,000 |
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Concierge Services |
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450,000 |
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Rental Fees Earned |
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225,000 |
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Rent expense |
80,000 |
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Office Supplies expense |
5,000 |
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Utilities expense |
7,500 |
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Depreciation Expense—Vehicles |
45,000 |
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Salary expense |
150,000 |
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Fuel expense |
62,000 |
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Totals |
$1,522,700 |
$1,522,700 |
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Bentley Luxury Car Services Income Statement For the year ended December 31 |
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Revenue: |
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Concierge Services |
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$450,000 |
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Rental Fees Earned |
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$225,000 |
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Total Revenues |
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$675,000 |
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Expenses: |
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Rent Expenses |
$80,000 |
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Office supplies expense |
$5,000 |
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Utilities expense |
$7,500 |
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Depreciation expense – Vehicles |
$45,000 |
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Salary expense |
$150,000 |
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Fuel expense |
$62,000 |
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Total expenses |
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($349,500) |
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Net income |
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$325,500 |
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Bentley Luxury Car Services Statement of Owner’s Equity For the year ended December 31 |
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R. Royce, Capital January 1 |
$505,000 |
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Plus: Net income |
325,500 |
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|
$830,500 |
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Less: Withdrawals by owner |
(60,000) |
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R. Royce, Capital, December 31 |
$770,500 |
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Bentley Luxury Car Services Balance Sheet December 31, 2021 |
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ASSETS |
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Cash |
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$755,000 |
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Accounts Receivable |
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$64,500 |
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Office Supplies |
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$3,700 |
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Vehicles |
$290,000 |
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Less: Accumulated Depreciation – Vehicles |
(180,000) |
110,000 |
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Total Assets |
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$933,200 |
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LIABILITIES |
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|
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Accounts Payable |
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$62,700 |
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Notes Payable |
|
100,000 |
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Total Liabilities |
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$162,700 |
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EQUITY |
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|
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R. Royce, Capital |
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770,500 |
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Total Liabilities and Equity |
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$933,200 |
