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The following accounts and account balances are taken from the records of Tesco Corporation at December 31, 2018. Account 2018 2017 Accounts payable Accounts receivable
The following accounts and account balances are taken from the records of Tesco Corporation at December 31, 2018. Account 2018 2017 Accounts payable Accounts receivable Notes receivable Bank loan Building Cash Dividends Equipment Income taxes payable Land Merchandize inventory Mortgage payable Prepaid insurance Share capital Retained earnings, start of year Net income 8,000 6,000 4,000 6,000 25,000 2,000 1,000 18,000 3,000 5,000 19,000 5,000 1,000 48,000 6,000 5,000 4,000 3,000 6,000 22,000 1,000 -D- 14,000 2,500 5,000 24,500 7,000 1,000 48,000 1,000 Other information: a. 1,000 of the notes receivable at December 31, 2018 will be received in cash during 2019. All of the notes receivable at December 31, 2017 were received in cash during 2018. b. 3,000 of the bank loan and 2,000 of the mortgage payable must be repaid by December 31, 2019. Prepare a classified statement of financial position. Assume all accounts have normal balances. Disclose all amounts separately on the statement of financial position. Do not use financial statement notes Does Tesco Corporation have sufficient resources to meet its current obligations in 2019? The following accounts and account balances are taken from the records of Tesco Corporation at December 31, 2018. Account 2018 2017 Accounts payable Accounts receivable Notes receivable Bank loan Building Cash Dividends Equipment Income taxes payable Land Merchandize inventory Mortgage payable Prepaid insurance Share capital Retained earnings, start of year Net income 8,000 6,000 4,000 6,000 25,000 2,000 1,000 18,000 3,000 5,000 19,000 5,000 1,000 48,000 6,000 5,000 4,000 3,000 6,000 22,000 1,000 -D- 14,000 2,500 5,000 24,500 7,000 1,000 48,000 1,000 Other information: a. 1,000 of the notes receivable at December 31, 2018 will be received in cash during 2019. All of the notes receivable at December 31, 2017 were received in cash during 2018. b. 3,000 of the bank loan and 2,000 of the mortgage payable must be repaid by December 31, 2019. Prepare a classified statement of financial position. Assume all accounts have normal balances. Disclose all amounts separately on the statement of financial position. Do not use financial statement notes Does Tesco Corporation have sufficient resources to meet its current obligations in 2019
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