Answered step by step
Verified Expert Solution
Question
1 Approved Answer
the answer : why is the retained earning is 130,000 in the answer instead of 78,000 shown in the question? E5.12 (LO 1, 2) (Preparation
the answer :
why is the retained earning is 130,000 in the answer instead of 78,000 shown in the question?
E5.12 (LO 1, 2) (Preparation of a Statement of Financial Position) Presented below is the trial balance of Vivaldi SpA at December 31, 2022. Debit Credit Cash 197,000 7,900,000 153,000 4,800,000 Sales Revenue Trading Securities (at cost, 145,000) Cost of Goods Sold Long-term Investments in Bonds Long-term Investments in Shares 299,000 277,000 90,000 Notes Payable (short-term) Accounts Payable Selling Expenses Investment Revenue 455,000 2,000,000 63,000 Land 260,000 1,040,000 136,000 96,000 435,000 352,000 Buildings Dividends Payable Accrued Liabilities Accounts Receivable Accumulated Depreciation- Buildings Allowance for Doubtful Accounts Administrative Expenses Interest Expense Inventory Pension Liability (long-term) Notes Payable (long- term) 25,000 900,000 211,000 597,000 80,000 900,000 900,000 600,000 1,000,000 60,000 160,000 Notes Payable (long- term) Equipment Bonds Payable Accumulated Depreciation, Equipment Franchises Share Capital- Ordinary (5 par) Treasury Shares Patents Retained Earnings Accumulated Other Comprehensive Income 1,000,000 191,000 195,000 78,000 80,000 12,315,000 12,315,000 Total Instructions a Prepare a statement of financial position at December 31, 2022, for Vivaldi SpA. (Ignore income taxes.) 576,000 VIVALDI SpA Statement of Financial Position December 31, 2022 Assets Non-current assets Long-term investments Investments in bonds 299,000 Investments in ordinary shares 277,000 Property, plant, and equipment Land 260,000 Buildings 1,040,000 Less: Accum. Depreciation-buildings 352,000 688,000 Equipment 600,000 Less: Accum. Depreciation-equipment 60,000 540,000 Total property, plant, and equipment Intangible assets Franchises 160,000 Patents 195,000 Total non-current assets Current assets Inventories 597,000 Accounts receivable 435,000 Less: Allow for doubtful accounts 25,000 410,000 Trading securities (at cost 145,000) 153,000 Cash 197,000 Total current assets Total assets 1,488,000 355,000 2,419,000 1,357,000 3,776,000 Equity and Liabilities Equity Share capital-ordinary (5 par) Retained earnings* Accumulated other comprehensive income Less: Treasury shares Total equity 1,000,000 130,000 80,000 191,000 1,019,000 1,000,000 900,000 80,000 1,980,000 Non-current liabilities Bonds payable Long-term notes payable Pension liability Total non-current liabilities Current liabilities Short-term notes payable Accounts payable Dividends payable Accrued liabilities Total current liabilities Total liabilities Total equity and liabilities 90,000 455,000 136,000 96,000 777,000 2,757,000 3,776,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started