prepare balance sheet and calculate retained earnings

Sub Help Save & Ew The following trial balance was prepared by Vantage Electronics Corporation, a Canadian private enterprise, as of 31 December 20x5 The adjusting entries for 20xs have been made, except for any related to the specific information noted below. Vantage Electronics Trial Balance 31 December Zexs Cash $10, Accounts receivable le, Inventories 7. Equipment 17.610 Land 5,600 Building 5.890 Prepaid expenses ace Accounts payable $ 1,710 Note payable, 12,800 Share capital, 2,504 shares outstanding 24,990 Hetained warnings 17,240 Totals $56,950 $56,95 Other information You find that certain errors and omissions are reflected in the trial balance below a. The $10,000 balance in accounts receivable represents the entire amount owed to the company of this amount $8 600 is from trade customers and 6% of that amount is estimated to be uncollectible. The remaining amount owed to the company represents a long-term advance to its president b Inventories include $1100 of goods incorrectly valued at double their cost fie reported at $2.2001 No correction has been recorded Office supplies on hand of $700 are also included in the balance of inventories c. When the equipment and building were purchased new on January 20X0 six years earlier, they had estimated lives of 10 and 25 years respectively. They have been amortized using the straight line method on the assumption of zero residual value and depreciation has been credited directly to the user accounts Amortization has been recorded for 20X5 ved Help Save & Ext d. The balance in the land account includes a $1.400 payment made as a deposit on the purchase of an adjoining tract. The option to buy it has not yet been exercised and probably will not be exercised during the coming year e. The interest-bearing note dated 1 April 20x5 matures 31 March 20X6. Interest on it has not been recorded for 20x5 ! Required: 1. Prepare a balance sheet. (List accounts in order of their liquidity.) 47 VANTAGE ELECTRONICS CORPORATION Balance Sheet 31 December 2005 (Amounts in Canadian dollars) Assets Current assets Total current assets Total capital assets Other assets Total assets Liabilities Current liabilities Total liabilities Shareholders' Equity Contributed capital Total shareholders' equity Total liabilities and shareholders equity 2. Calculate the ending balance in retained earnings. Opening balance Ending balance 2 b. Inventories include $1,100 of goods incorrectly valued at double their cost (.e., reported at $2,200). No correction has been recorded. Office supplies on hand of $700 are also included in the balance of inventories. c. When the equipment and building were purchased new on 1 January 20X0 (i.e., six years earlier), they had estimated lives of 10 and 25 years, respectively. They have been amortized using the straight-line method on the assumption of zero residual value, and depreciation has been credited directly to the asset accounts. Amortization has been recorded for 20X5. d. The balance in the land account includes a $1,400 payment made as a deposit on the purchase of an adjoining tract. The option to buy it has not yet been exercised and probably will not be exercised during the coming year. e. The interest-bearing note dated 1 April 20x5 matures 31 March 20X6. Interest on it has not been recorded for 20X5. The following trial balance was prepared by Vantage Electronics Corporation, a Canadian private enterprise, as of 31 December 2005. The adjusting entries for 20x5 have been made, except for any related to the specific information noted below. Vantage Electronics Trial Balance 31 December 20X5 Cash $10,000 Accounts receivable 10,000 Inventories 7,000 Equipment 17,600 Land 5,600 Building 5,890 Prepaid expenses 860 Accounts payable $ 3,710 Note payable, 8% 12,000 Share capital, 2,504 shares outstanding 24,000 Retained earnings 17,240 Totals $56,950 $56,950 Other information: You find that certain errors and omissions are reflected in the trial balance below: a. The $10,000 balance in accounts receivable represents the entire amount owed to the company, of this amount $8,600 is from trade customers and 6% of that amount is estimated to be uncollectible. The remaining amount owed to the company represents a long-term advance to its president. b. Inventories include $1,100 of goods incorrectly valued at double their cost (i.e. reported at $2,200). No correction has been recorded. Office supplies on hand of $700 are also included in the balance of inventories c. When the equipment and building were purchased new on 1 January 20X0 (i.e., six years earlier), they had estimated lives of 10 and webapps 02 ZIPO 2020 Saved Help S: trade customers and 6% of that amount is estimated to be uncollectible. The remaining amount owed to the company represent long-term advance to its president. b. Inventories include $1,100 of goods incorrectly valued at double their cost i.e., reported at $2,200). No correction has been recorded. Office supplies on hand of $700 are also included in the balance of inventories. c. When the equipment and building were purchased new on 1 January 20X0 (i.e., six years earlier), they had estimated lives of 10 25 years, respectively. They have been amortized using the straight-line method on the assumption of zero residual value, and depreciation has been credited directly to the asset accounts. Amortization has been recorded for 20X5. d. The balance in the land account includes a $1,400 payment made as a deposit on the purchase of an adjoining tract. The optic buy it has not yet been exercised and probably will not be exercised during the coming year. e. The interest-bearing note dated 1 April 2005 matures 31 March 20X6. Interest on it has not been recorded for 20X5. Required: 1. Prepare a balance sheet. (List accounts in order of their liquidity.) 2. Calculate the ending balance in retained earnings. Opening balance Ending balance +26