Question
Account 2021 2020 Accounts payable $10,000 $7,000 Accounts receivable 8,000 6,000 Notes receivable 6,000 2,000 Bank loan 4,000 7,000 Building 50,000 20,000 Cash 3,000 2,000
| Account | 2021 | 2020 |
| Accounts payable | $10,000 | $7,000 |
| Accounts receivable | 8,000 | 6,000 |
| Notes receivable | 6,000 | 2,000 |
| Bank loan | 4,000 | 7,000 |
| Building | 50,000 | 20,000 |
| Cash | 3,000 | 2,000 |
| Dividends | 2,000 | -0- |
| Equipment | 25,000 | 15,000 |
| Income taxes payable | 4,000 | 2,000 |
| Land | 50,000 | 50,000 |
| Merchandize inventory | 20,000 | 25,000 |
| Mortgage payable | 6,000 | 10,000 |
| Prepaid insurance | 2,000 | 1,000 |
| Share capital | 48,000 | 48,000 |
Other information: a. $1,000 of the notes receivable at December 31, 2021 will be received in cash during 2022. All of the notes receivable at December 31, 2020 were received in cash during 2021. b. $3,000 of the bank loan and $2,000 of the mortgage payable of December 2021 must be repaid by December 31, 2022. c. 2020 was the first year of the Companys operations.
Question - Refer to BDCCs note 4 shown in this chapter. Assume now that Tuckers property, plant, and equipment are combined into one amount on the statement of financial position. Prepare a suitable note to the financial statements.
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Managerial Accounting An Introduction To Concepts Methods And Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil, Sidney Davidson
7th Edition
9780030259630
