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The following accounts and account balances are taken from the records of Tucker Corporation, at December 31, 2021. Account 2021 2020 Accounts payable $
The following accounts and account balances are taken from the records of Tucker Corporation, at December 31, 2021. Account 2021 2020 Accounts payable $ 10,000 $7,000 Accounts receivable 8,000 6,000 Notes receivable Bank loan Building 6,000 2,000 4,000 7,000 50,000 20,000 Cash 3,000 2,000 Dividends 2,000 -0- Equipment 25,000 15,000 Income taxes payable 4,000 2,000 Land 50,000 50,000 Merchandize inventory 20,000 25,000 Mortgage payable 6,000 10,000 Prepaid insurance 2,000 1,000 Share capital 48,000 48,000 Other information: a. $1,000 of the notes receivable at December 31, 2021 will be received in cash during 2022. All of the notes receivable at December 31, 2020 were received in cash during 2021. b. $3,000 of the bank loan and $2,000 of the mortgage payable of December 2021 must be repaid by December 31, 2022. c. 2020 was the first year of the Company's operations. Required: 1. Make a Statement of Changes in Financial Position for year ending 2020 and 2021. 2. Prepare a classified statement of financial position. Assume all accounts have normal balances. Disclose all amounts separately on the statement of financial position. Use a note for Property Plant and Equipment. (See requirement 4). The company is not recording depreciation expense. 3. Does the Company have sufficient resources to meet its current obligations in 2021? 4. Refer to BDCC's note 4 shown in this chapter. Assume now that Tuckers' property, plant, and equipment are combined into one amount on the statement of financial position. Prepare a suitable note to the financial statements
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