Based on the following trial balance for Barry's Automotive Shop, Inc., prepare an income statement, statement of retained earnings, and a balance sheet. Barry made no additional investments in the company during the year.
Barry's Automotive Shop, Inc.
Trial Balance
December 31 Cash................................. Accounts receivable......... Supplies............................. Repair shop equipment...... Service truck.................... Accounts payable.............. Common stock.................. Retained earnings.............. Dividends.......................... Service revenue................. Supplies expense................ Rent expense..................... Utilities expense................ Gas expense...................... Wages expense.................. Totals .............................. $13,5001,50050027,00033,00036,0003,42518,0005,0007,20022,000$167,125$2,6001,00038,525125,000167,125
Definitions:
Excess Depreciation
The depreciation claimed on an asset that exceeds the amount that reflects its actual decrease in value, often due to accelerated depreciation methods.
Consolidation Purposes
The objective of amalgamating financial statements from various entities within a single corporate group to present a unified financial position and results of operations.
Eliminate Unrecognized
A process in accounting, often related to consolidation, where unrealized profits, losses, or transactions within or among entities are removed from financial statements.
Intra-entity Gross Profit
The profit recognized on transactions conducted within the same entity, which may need to be eliminated in consolidated reporting.