The adjusted trial balance for China Tea Company at December 31, 2021, is presented below: Accounts Debit Credit Cash $ 16,000 Accounts receivable 158,000 Prepaid rent 7,000 Supplies 27,000 Equipment 330,000 Accumulated depreciation $ 127,000 Accounts payable 19,000 Salaries payable 3,800 Interest payable 1,500 Notes payable (due in two years) 30,000 Common stock 180,000 Retained earnings 94,700 Dividends 30,000 Service revenue 470,000 Salaries expense 185,000 Advertising expense 78,000 Rent expense 18,000 Depreciation expense 33,000 Interest expense 2,000 Utilities expense 42,000 Totals $ 926,000 $ 926,000 Prepare a classified balance sheet for China Tea Company as of December 31, 2021.

China Tea Company

Classified Balance Sheet as at December 31, 2021

ASSETS

Non Current Assets

Equipment                                                               $330,000

Accumulated depreciation                                    ($127,000)

Total Non - Current Assets                                    $203,000

Current Assets

Prepaid rent                                                                $7,000

Supplies                                                                    $27,000

Accounts receivable                                               $158,000

Cash                                                                          $ 16,000

Total Current Assets                                              $208,000

TOTAL ASSETS                                                        $411,000

EQUITY AND LIABILITIES

EQUITY

Common stock                                                      $180,000

Retained Earnings                                                 $361,700

TOTAL EQUITY                                                      $541,700

LIABILITIES

Non Current Liabilities

Notes payable (due in two years)                         $30,000

Total Non - Current Liabilities                               $30,000

Current Liabilities

Accounts payable                                                  $19,000

Salaries payable                                                      $3,800

Interest payable                                                       $1,500

Total Current Liabilities                                         $24,300

TOTAL LIABILITIES                                               $54,300

TOTAL EQUITY AND LIABILITIES                      $596,000

Explanation:

A Balance Sheet show the Assets, Liabilities and Equity Balances as at the Reporting date

Retained Earnings Balance = Opening Balance + Profit for the year - Dividends.

where,

Profit for the Year = Sales - Expenses

                              = $470,000 - ($78,000 + $18,000 + $33,000 + $2,000 + $42,000)

                              = $297,000

therefore,

Retained Earnings Balance = $94,700 + $297,000  - 30,000 = $361,700

answer: e

explanation: