E3-12

1. Enter the appropriate amounts in the green-shaded cells.

An asterisk (*) will appear before an incorrect amount in the answer cells.
SURIAN MOTORS COMPANY
Worksheet
For Year Ended December 31, 2019

Trial Balance Adjustments Income Statement

Account Titles Debit Credit Debit Credit Debit
Cash 2,500
Accounts Receivable 4,000
Allowance for Doubtful Accounts 300
Inventory 8,200
Prepaid Rent 3,600
Equipment 30,000
Accumulated Depreciation 12,000
Accounts Payable 3,700
Note Payable (due 7/1/20) 5,000
Common Stock (1,000 shares) 8,900

Retained Earnings (1/1/19) 10,200

Dividends 1,000
Sales Revenue 45,000
Cost of Goods Sold 21,000
Salaries Expense 7,100
Utilities Expense 3,300
Advertising Expense 4,400            
Totals 85,100 85,100

Depreciation Expense
Salaries Payable
Rent Expense
Bad Debt Expense
Interest Expense
Interest Payable

Income Tax Expense

Income Taxes Payable

Net Income

Retained Earnings (12/31/19)

2. Enter the appropriate amounts in the green-shaded cells in columns C and E.

An asterisk (*) will appear before an incorrect amount in the answer cells.
SURIAN MOTORS COMPANY
Income Statement
For Year Ended December 31, 2019

Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses:
Salaries Expense
Utilities Expense
Advertising Expense
Depreciation Expense
Rent Expense
Bad Debt Expense
Total Operating Expenses
Income from Operations
Other Item:
Interest Expense
Income before Income Taxes
Income Tax Expense
Net Income

Earnings per Share (1,000 shares)

SURIAN MOTORS COMPANY

Statement of Retained Earnings
For Year Ended December 31, 2019

Retained Earnings, January 1, 2019

Add: Net Income for 2019

Less: Dividends for 2019

Retained Earnings, December 31, 2019

SURIAN MOTORS COMPANY

Balance Sheet
December 31, 2019
Assets
Current Assets:
Cash
Accounts Receivable
Less: Allowances for
Doubtful Accounts
Inventory
Prepaid Rent
Total Current Assets
Property, Plant, and Equipment:
Equipment
Less: Accumulated Depreciation
Total Property, Plant, and Equipment
Total Assets

Liabilities
Current Liabilities:
Accounts Payable
Note Payable
Salaries Payable
 Interest Payable
Income Taxes Payable
Total Liabilities

Shareholders' Equity
Contributed Capital
Common Stock (1,000 shares)
Retained Earnings
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity

3. To enter the journal entries, enter the appropriate account titles in the green-shaded cells in column
A and the appropriate amounts in the green-shaded cells in columns E and G. The account titles are required
to be entered by the student; however, these cells are not graded.
An asterisk (*) will appear before an incorrect amount in the answer cells.
Closing Entries
2019
Dec. 31

Dec. 31

Dec. 31

Dec. 31
 Name:

PANY

31, 2019

Income Statement Retained Earnings Balance Sheet

Credit Debit Credit Debit Credit

           
           
s are required