Chapter 7
Corporations: The Financial Statements
339
AP-10A (
5
)
Below is the adjusted trial balance for Home Care Solutions Inc.
Home Care Solutions Inc.
Adjusted Trial Balance
June 30, 2016
Debit
Credit
Accounts Payable
$71,200
Accounts Receivable
$80,000
Accumulated Depreciation
28,000
Cash
63,850
Common Shares
10,400
Cost of Goods Sold
96,000
Depreciation Expense
35,200
Insurance Expense
36,000
Interest Expense
21,120
Interest Payable
14,960
Inventory
90,000
Loan Payable
176,000
Preferred Shares
7,200
Prepaid Rent
28,000
Equipment
176,000
Rent Expense
66,000
Retained Earnings (after Dividends)
40,810
Salary Expense
72,000
Salary Payable
34,000
Sales Returns
12,000
Sales Revenue
400,000
Unearned Revenue
49,600
Utilities Expense
56,000
Total
$832,170
$832,170
Additional Information
• Net income for the year was $5,680 and the retained earnings at July 1, 2015 was
$44,960. Dividends of $4,150 were declared and paid in the year.
• Home Care Solutions has a loan payable due in 8 years. The principal payments are
$2,800 per month.
• 1,440 $2, cumulative preferred shares have been issued and 15,000 have been
authorized. 3,000 common shares have been issued and 45,000 have been authorized.
