A friend of yours is the president of Marble Imports Ltd. The company sells and services cars imported from Korea, Marble has just completed its first year of operations. The following balance sheet was prepared by the company bookkooper (Click the icon to view the balance sheet.) Click the icon to view the notes) Required Requirement a. After adjusting for any errors, prepara a balance sheet for Marble as at December 31, 2021, using the current non-current presentation. Ignore income taxes. (Do not calculate a revised net income Simply plug in a net income figure to balance the balance sheet Round your answers to the nearest whole number. Leave any unused cells blank.) Marble Imports Ltd. Balance Sheet December 31, 2021 Assets 4.100 101.000 Cash in current account Accounts receivable (note 1) Cars and carparts (note 2) Accumulated depreciation on cars (note 3) Equipment (note 4) Land held for future development 816,000 (87.600) 174,000 227.000 1.234.500 Equities Accounts payable (note 5) Bank ban payable (note 6) Common shares (47.875 shares authorized and issued) 358,000 318.000 478.750 79.750 Net Income 1.234.500 1. Accounts receivable is comprised of the following: Debit balances in customer accounts $ 151,000 Credit balances in customer accounts (50,000) $ 101,000 $ 2. The cars and car parts account is comprised of the following: Car parts for service department (at cost) $ 67,000 Cars intended for resale (at retail price) 647,000 Cars used by executives for business purposes 102,000 816.000 The purchase price of the cars intended for resale was $533,000. The cars for the executives were purchased on June 30, 2021, at a cost of $102,000. 3. All cars that require depreciation are being depreciated on a straight-ine basis with a three-year estimated useful life and a residual value of 30% of original cost. 4. The equipment was purchased for $174,000 on January 2, 2021. The price paid was a bargain because the regular price for this equipment was $218,000. The equipment should last for seven years but would be worthless at that time. However, the company plans to replace it at the end of five years and expects to be able to sell it for $24,000 at that time. The company wants to use the declining balance method for depreciation with a rate twice the straight-line rate but has not yet calculated or recorded the depreciation expense for the equipment for the year. 5. Accounts payable is comprised of the following balances: Amounts owing to suppliers $ 118,000 240.000 Loan received from the majority shareholder $ 358,000 The loan was received from the majority shareholder on October 1, 2021. The loan is repayable over four years with annunt payments of $63,000 plus accrued interest at 6% per year. The first payment is due on October 1, 2022. No interest has been accrued on the loan 6. The bank loan is due on demand and is secured by the cars held for resale i Required a. After adjusting for any errors, prepare a balance sheet for Marble as at December 31, 2021, using the currenton-current presentation. Ignore income taxes. (Do not calculate a revised net income. Simply plug in a net income figure to balance the balance sheet. Round your answers up to the nearest whole number. Leave any unused cells blank.) b. On February 2, 2022, a fire in Marble's warehouse destroyed $27,000 worth of car parts. Unfortunately, Marble did not have insurance to cover this loss. The financial statements for 2021 were not finalized until the end of February 2022. Briefly explain how and why this fire loss should be recognized and/or disclosed in the 2021 financial statements
