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Question 1 (30 Marks) The financial statement columns of the work sheet for Audio Concepts at December 31, 2020, are as follows: AUDIO CONCEPTS Work

Question 1 (30 Marks)

The financial statement columns of the work sheet for Audio Concepts at December 31, 2020, are as follows:

AUDIO CONCEPTS

Work Sheet

For the Year Ended December 31, 2020

image text in transcribed

REQUIRED:

  1. Calculate the balance of J. Franco, Capital that would appear on a balance sheet at December 31, 2020.

[5 marks]

  1. Prepare a classified balance sheet for Audio Concepts at December 31, 2020 assuming the note payable is a long-term liability.

[15 marks]

  1. Prepare equity and income statements at December 31, 2020 .

[10 marks]

Income Statement Debit Credit Accounts Cash Accounts Receivable Supplies Prepaid Insurance Audio Equipment Accumulated Depreciation-Audio Equipment Accounts Payable Note Payable Salaries Payable J. Franco, Capital J. Franco, Drawing Audio Revenue Advertising Expense Depreciation Expense Insurance Expense Rent Expense Salaries Expense Supplies Expense Totals Net Income Balance Sheet Debit Credit 20,000 11,000 4,000 6,000 205,000 29,000 19,000 70,000 3,000 112,000 14,000 123,000 18,000 12,000 3,000 17,000 40,000 6,000 96,000 27,000 123,000 123,000 260,000 233,000 27.000 260,000 123,000 260,000 Instructions

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