Problem #3- This problem is worth 15 points. You must use an Excel spreadsheet for your answer. Axion Corporation Balance Sheet December 31, 202X Assets Cash Accounts receivable Land, building & equipment Prepaid expenses Patent Inventory $ 32,500 174,175 540,000 14,000 17,000 50,000 Total Assets $ 827,675 Liabilities and Owners' Equity Accounts payable Mortgage payable Taxes payable Unearned revenue Common stock Retained earnings $ 54,300 150,000 40,000 11,000 50,000 522,375 Total Liabilities and Owners' Equity $ 827,675 The books have been closed for the year. Any changes in revenues or expenses will be adjusted to Retained Earnings. Required: Based on the information above, and the information below, prepare IN GOOD FORM: 3) A review of the land, building and equipment account indicated the land cost $140,000. The building cost was $400,000, and the equipment cost $100,000. Depreciation on the building has been calculated on the straight-line method using a 40 year useful life, and has been on the books for eight years. The equipment was purchased two years ago and is being depreciated on the straight-line method with a useful life of 10 years. 4) The patent was purchased on January 2nd of the current year and has a legal life of 20 years. No amortization has been recorded for the current period. Problem #3- This problem is worth 15 points. You must use an Excel spreadsheet for your answer. Axion Corporation Balance Sheet December 31, 202X Assets Cash Accounts receivable Land, building & equipment Prepaid expenses Patent Inventory $ 32,500 174,175 540,000 14,000 17,000 50,000 Total Assets $ 827,675 Liabilities and Owners' Equity Accounts payable Mortgage payable Taxes payable Unearned revenue Common stock Retained earnings $ 54,300 150,000 40,000 11,000 50,000 522,375 Total Liabilities and Owners' Equity $ 827,675 The books have been closed for the year. Any changes in revenues or expenses will be adjusted to Retained Earnings. Required: Based on the information above, and the information below, prepare IN GOOD FORM: 3) A review of the land, building and equipment account indicated the land cost $140,000. The building cost was $400,000, and the equipment cost $100,000. Depreciation on the building has been calculated on the straight-line method using a 40 year useful life, and has been on the books for eight years. The equipment was purchased two years ago and is being depreciated on the straight-line method with a useful life of 10 years. 4) The patent was purchased on January 2nd of the current year and has a legal life of 20 years. No amortization has been recorded for the current period
