Presented below are the trial balance and the other information related to Bravo Motors Company Limited....

 

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Presented below are the trial balance and the other information related to Bravo Motors Company Limited. Bravo Motors Company Limited Trial Balance December 31, 2022 Debit Credit Cash $ 375,000 Acounts Receivable $ 85,600 Allowance for Doubtful Accounts S 10,500 Supplies Prepaid Insurance Equipment SSS 35,600 7,900 S 55,000 Accumulated Depreciation- Equipment $ 19,000 Notes Payable S 30,000 Common Stock $ 25,000 Retained Earnings S 113,000 Service Revenue $ 438,000 Rent Expense 26,640 Salaries and Wages Expense $ 30,500 Utilities Expenses $ 15,800 Office Expense $ 3,460 $ 635,500 S 635,500 1. Fees received in advance from clients and included in Service Revenue initially, $12,000. 2. Services performed for clients that were not recorded by December 31, $16,900. 3. Bad debt expense for the year is $12,500. 4. Insurance expired during the year $3,500. 5. Equipment is being depreciated at 10% per year. 6. Bravo Motors gave the bank a 90-day, 10% note for $30,000 on December 1, 2022. 7. Rent of the building is $9,195 per month. The rent for 2022 has been paid, as has that for January and February 2023. The total rental payment was initially recorded in Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2022, $4,500. Instructions Prepare an income statement for 2022, a retained earnings statement, and a classified balance sheet. The Bravo Motors Company Limited paid $30,000 cash dividend during the year (Recorded in Retained Earnings). (40 Points) Presented below are the trial balance and the other information related to Bravo Motors Company Limited. Bravo Motors Company Limited Trial Balance December 31, 2022 Debit Credit Cash $ 375,000 Acounts Receivable $ 85,600 Allowance for Doubtful Accounts S 10,500 Supplies Prepaid Insurance Equipment SSS 35,600 7,900 S 55,000 Accumulated Depreciation- Equipment $ 19,000 Notes Payable S 30,000 Common Stock $ 25,000 Retained Earnings S 113,000 Service Revenue $ 438,000 Rent Expense 26,640 Salaries and Wages Expense $ 30,500 Utilities Expenses $ 15,800 Office Expense $ 3,460 $ 635,500 S 635,500 1. Fees received in advance from clients and included in Service Revenue initially, $12,000. 2. Services performed for clients that were not recorded by December 31, $16,900. 3. Bad debt expense for the year is $12,500. 4. Insurance expired during the year $3,500. 5. Equipment is being depreciated at 10% per year. 6. Bravo Motors gave the bank a 90-day, 10% note for $30,000 on December 1, 2022. 7. Rent of the building is $9,195 per month. The rent for 2022 has been paid, as has that for January and February 2023. The total rental payment was initially recorded in Rent Expense. 8. Office salaries and wages earned but unpaid December 31, 2022, $4,500. Instructions Prepare an income statement for 2022, a retained earnings statement, and a classified balance sheet. The Bravo Motors Company Limited paid $30,000 cash dividend during the year (Recorded in Retained Earnings). (40 Points)

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To prepare the required financial statements income statement retained earnings statement classified balance sheet for Bravo Motors Company Limited fo... View the full answer