Barnes Wallace Enterprises

1. Office supplies were counted and it was determined that $20,000 were on-hand.hand.

2. On January 1st 2021 $75,000 was paid in advance on a three year rent contract - ending Dec. 31st of 2023

3. Depreciation on equipment is taken annually at an rate of 30%.

4. The sales manager has confirmed that 50% of deferred revenues were earned during the year.

5. Long-Term Debts are owed to Local Bank Inc.. Interest is paid annually (Jan. 1st) based on a 12% per year interest rate.

6. It was determined that the company owes $60,000 in wages. Payment is to be made in January of next year.

7. Income Tax is expected to be 20% of Net Income. This is expected to be paid on Jan. 30th of next year.

Balance Sheet
Barnes Wallace Enterprises as at Dec. 31st
Unadjusted Trial Balance Adjusted Trial Balance
Dec. 31st 2021 Adjustments Dec. 31st 2021 Income Statement Balance Sheet Assets
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Current Assets Current Liabilities
Cash $ 1,160,000 Cash Acct. Payable
Accounts Receivable 150,000 Acct. Receivable Wages Payble
Inventory 300,000 Inventory Interest Payable
Office Supplies 60,000 Office Supplies Income Taxes Payable
Prepaid Rent 75,000 Prepaid Rent Unearned (Deferred) Revenue
Equipment 800,000 Total Current Assets Total Current Liab.
Accumulated Depreciation $ 200,000
Accounts Payble 100,000 Long-Term Assets Long-Term Debts
Wages Payable Equipment Total Liabilities
Interest Payable Less: Accum. Deprec.
Income Tax Payable
Unearned (Deferred) Revenue 250,000 Total Long-Term Assets
Long-Term Debt 500,000 Shareholder's Equity
Common Stock 1,000,000 Common Stock
Retained Earnings 250,000 Retained Earnings
Sales Revenue 545,000 Total Shareholder's Equity
Office Supplies Expense
Wages Expense 300,000 Total Assets Total Liab. & Shareholder's Equity
Depreciation Expense
Interest Expense
Rent Expense
Income Tax Expense Income Statement
Total $ 2,845,000 $ 2,845,000 for the period ending Dec. 31st

Net After-Tax Income Sales Revenue

Less:
Office Supplies Expense
Wages Expense
Depreciation Expense
Interest Expense
Rent Expense
Total Expenses

Before Tax Net Income

Income Tax Expense
After- Tax Net Income

Statement of Retained Earnings

as at Dec. 31st

Opening Retained Earnings

Add: Net After-Tax Income
Less: Dividends
Closing Retained Earnings

# Internal