The following items are taken from the financial statements of Laramie Company for the year ending December 31, 2010: Accounts…
The following items are taken from the financial statements of Laramie Company for the year ending December 31, 2010:
Accounts payable $20,000
Interest Payable 8,000
Accounts receivable 21,000
Accumulated depreciation – equipment 28,000
Advertising expense 21,000
Cash 5,000
Laramie, Capital (1/1/10) 100,000
Laramie, Drawing 12,000
Depreciation expense 12,000
Insurance expense 3,000
Note payable, due 6/30/15 60,000
Prepaid insurance (12-month policy) 6,000
Copyright 5,000
Rent expense 17,000
Salaries expense 32,000
Service revenue 130,000
Interest Income 3,000
Supplies 9,000
Supplies expense 6,000
Land 45,000
Equipment 155,000
All accounts have normal balances. All asset, liability, revenue and expense accounts are post adjusting entry balances. Closing entries for 2010 are not reflected in the account balances, so you need to update the Capital Account.
Instructions: Prepare a classified Balance Sheet for the Laramie Company for the year ending December 31, 2010. Include subtotals for classifications and totals for balance sheet sections. There were no additional owner investments during 2010.
