Based on the Following Trial Balance for Barry's Automotive Shop

question 97

Essay

Based on the following trial balance for Barry's Automotive Shop, prepare an income statement, statement of retained earnings, and a balance sheet. Barry, the company's sole stockholder, made no additional investments in the company during the year.
$\begin{array}{|lcc|}\hline \quad \quad \quad \quad \quad \text { Barry's Automotive Shop } \quad\quad\quad\quad \\\hline \quad \quad \quad \quad \quad\quad\quad \text { Trial Balance } \\\hline \quad \quad \quad \quad \quad \quad\quad \text { December 31 } \\\end{array}$
$\begin{array}{|l|r|r|}\hline \text { Cash } & \$ 12,500 \\\hline \text { Accounts receivable } & 1,500 \\\hline \text { Supplies } & 500 \\\hline \text { Repair shop equipment } & 27,000 \\\hline \text { Service truck } & 33,000\\\hline \text { Accounts payable } & & \$ 2,600 \\\hline \text { Barry, Capital } & & 38,525 \\\hline \text { Barry, Withdrawals } & 36,000 & \\\hline \text { Service revenue } & & 125,000 \\\hline \text { Supplies expense } & 3,425 \\\hline \text { Rent expense } & 18,000 \\\hline \text { Utilities expense } & 5,000 \\\hline\text { Gas expense } & 7,200 \\\hline\text { Wages expense } & 22,000 \\\hline \text { Totals } & \underline {\$ 166,125}& \underline {\$ 166,125} \\\hline\end{array}$

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Definitions:

Causes

The reasons or motivations that lead to specific events or outcomes, often studied in historical, social, and scientific contexts.

Consequences

Outcomes or results that follow from actions, events, or decisions.

American System

An economic plan that played a significant role in the policy-making of the early 19th century in the United States, advocating for high tariffs, a national bank, and federal subsidies for roads, canals, and other 'internal improvements' to develop profitable markets for agriculture.

James Madison

The fourth President of the United States (1809-1817), known as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution.