Given the following account information for Life Corporation, all accounts have normal balances.

Equipment 40,000

Interest Expense 2,400

Interest Payable 600

Retained Earnings ?

Dividends 50,400

Land 157,320

Inventory 102,000

Bonds Payable 78,000

Notes Payable (due in 6 months) 24,400

Share CapitalOrdinary 60,000

Accumulated Depreciation - Equip. 10,000

Prepaid Advertising 5,000

Revenue 351,400

Buildings 80,400

Supplies 1,860

Taxes Payable 3,000

Utilities Expense 1,320

Advertising Expense 1,560

Salaries and Wages Expense 53,040

Salaries and Wages Payable 900

Accumulated Dep. - Buildings 15,000

Cash and cash equivalent 40,000

Depreciation Expense 8,000

Required:

1. Prepare a statement of financial position in report form for the company as of December 31, 2019. [6 Marks]
2. Explain the meaning of cash equivalent, give at least two examples. [2 Marks]