Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The trial balance of Novak Ltd. at December 31, 2020, follows: Debits Credits Cash $295,000 Sales revenue $10,299,000 FV-NI investments (at fair value) 323,000 Cost

The trial balance of Novak Ltd. at December 31, 2020, follows:

Debits Credits

Cash

$295,000

Sales revenue

$10,299,000

FV-NI investments (at fair value)

323,000

Cost of goods sold

6,400,000

Bond investment at amortized cost

429,000

FVOCI investments (fair value $445,000)

378,000

Notes payable (due in six months)

99,000

Accounts payable

805,000

Selling expenses

2,460,000

Investment income or loss*

11,000

Land

320,000

Buildings

2,940,000

Dividends payable

56,000

Income tax payable

106,000

Accounts receivable

705,000

Accumulated depreciationbuildings

232,000

Allowance for doubtful accounts

37,000

Administrative expenses

930,000

Interest expense

251,000

Inventory

767,000

Gain on disposal of land

60,000

Dividends

50,000

Notes payable (due in five years)

930,000

Equipment

770,000

Bonds payable (due in three years)

3,000,000

Accumulated depreciationequipment

61,000

Intangible assetsfranchises (net)

250,000

Common shares

969,000

Intangible assetspatents (net)

225,000

Retained earnings

731,000

Accumulated other comprehensive income

97,000

Totals

$17,493,000 $17,493,000
* The investment income or loss relates to the FV-NI investments. (a) Prepare a classified statement of financial position as at December 31, 2020. Ignore income taxes. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Auditing An Adaptive Process

Authors: Robert E. Davis

1st Edition

0557220513, 978-0557220519

More Books

Students also viewed these Accounting questions