Question: The accounts of Bracken Ltd Services Company prior to the

The accounts of Bracken Ltd. Services Company prior to the year-end adjustments follow:

Adjusting data at the end of the year include the following:
a. Unearned service revenue that has been earned, $1,650
b. Accrued service revenue, $32,200
c. Supplies used in operations, $3,100
d. Accrued salary expense, $3,500
e. Prepaid insurance expired, $1,500
f. Depreciation expense—building, $2,600
Carter Bracken, the principal stockholder, has received an offer to sell Bracken Ltd. Services Company. He needs to know the following information within one hour:
a. Net income for the year covered by these data
b. Total assets
c. Total liabilities
d. Total stockholders’ equity
e. Proof that Total assets = Total liabilities + Total stockholders’ equity after all items are updated

Without opening any accounts, making any journal entries, or using a work sheet, provide Mr. Bracken with the requested information. The business is not subject to incometax.

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  • CreatedJuly 25, 2014
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