> Exercises
E-F:4-16 Preparing the financial statements
The adjusted trial balance for Violet Advertising Services is presented below:
Account Title
Cash
Accounts Receivable
Supplies
Land
Building
Accumulated Depreciation-Building
VIOLET ADVERTISING SERVICES
Adjusted Trial Balance
December 31, 2025
Furniture
Accumulated Depreciation-Furniture
Accounts Payable
Salaries Payable
Unearned Revenue
Common Stock
Retained Earnings
Dividends
Service Revenue
Salaries Expense
Supplies Expense
Depreciation Expense-Building
Depreciation Expense-Furniture
Advertising Expense
Total
Balance
Debit
$ 13,500
13,800
7,700
17,500
47,500
17,500
15,500
Completing the
24,000
8,300
2,100
1,500
10,500
$ 179,400
Credit
$ 38,500
13,500
9,500
8,000
12,500
29,500
30,000
37,900
$ 179,400
Learning Objective 1
2. Ending Retained Earnings
$6,000
Requirements
1. Prepare the income statement for the year ending December 31, 2025.
2. Prepare the statement of retained earnings for the year ending December 31, 2025.
3. Prepare the classified balance sheet as of December 31, 2025. Use the report form.
