Craft Carpentry Limited reports the following statement of financial position accounts, in alphabetical order: Accounts payable...........................$ 15,600
Question:
Craft Carpentry Limited reports the following statement of financial position accounts, in alphabetical order:
Accounts payable...........................$ 15,600
Accounts receivable...........................13,100
Bank loan payable.............................32,000
Cash..............................................9,350
Common shares................................20,000
Equipment......................................30,500
Income tax payable.............................1,800
Intangible assets.................................5,000
Interest payable.................................$ 300
Inventory.........................................9,200
Prepaid insurance...............................1,000
Retained earnings.............................21,250
Salaries payable...................................700
Supplies..........................................2,800
Unearned revenue..............................1,800
Vehicles.......................................22,500
Instructions
(a) Classify each account as an asset (A), liability (L), or shareholders' equity (SE) item.
(b) Calculate total assets, total liabilities, and total shareholders' equity and prepare Craft Carpentry's accounting equation.
(c) Craft Carpentry's retained earnings were $18,000 at the beginning of the year. The company reported revenues of $296,750, expenses of $278,500, and dividends of $15,000 during the year. Prepare a calculation that proves how retained earnings of $21,250 at the end of the year were determined.
Intangible AssetsAn intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine