Acc421 Intermediate Accounting: E3-11 The adjusted trial balance of Cavamanlis Co

Acc421 Intermediate Accounting

Exercise 3-11 (Prepare Financial Statements)
The adjusted trial balance of Cavamanlis Co. as of December 31, 2010, contains the following.
Adjusted Trial Balance
December 31, 2010
Account Titles Debit Credit
Cash 19,989
Accounts Receivable 7,937
Prepaid Rent 3,297
Equipment 19,067
Accumulated Depreciation 5,912
Notes Payable 6,717
Accounts Payable 5,489
Common Stock 21,017
Retained Earnings 12,327
Dividends 4,017
Service Revenue 3,607
Salaries Expense 7,857
Rent Expense 2,669
Depreciation Expense 236
Interest Expense 174
Interest Payable 174
65,243 65,243

a. Prepare an income statement. (List multiple entries from largest to smallest amount, e.g. 10, 5, 2.)
b. Prepare a statement of retained earnings.
c. Prepare a classified balance sheet. (List assets in order of liquidity and liabilities in order from largest to smallest amounts, e.g. 15, 11, 7.)
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