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:

Noncash Assets

Assets that are not in the form of cash and can include items such as property, equipment, and intellectual property.

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting its value in an arm's length transaction between willing parties.

Book Value

The net value of a company's assets expressed on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Partnership Assets

Resources owned by a partnership that are used in the operation of the business and are subject to division among partners according to their agreement.