These items are taken from the financial statements of Cullumber Ltd. at December 31, 2024:

Accounts payable		$21,050
Accounts receivable		22,780
Accumulated depreciationbuildings		49,600
Accumulated depreciationequipment		24,470
Buildings		131,800
Cash		25,040
Common shares		142,000
Equipment		68,100
Income tax expense		6,500
Interest expense		4,900
Interest payable		3,700
Land		195,970
Long-term investments		30,970
Mortgage payable		102,000
Operating expenses		158,680
Prepaid insurance		1,400
Retained earnings, January 1		118,520
Service revenue		186,040
Supplies		1,240

(a)

• Your Answer
• Correct Answer

Your answer is correct.

Calculate net income and the ending balance of retained earnings at December 31, 2024.

Net income	$enter a dollar amount Correct answer
Retained Earnings	$enter a dollar amount Correct answer

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Solution

List of Accounts

Attempts: 3 of 3 used

(b)

Prepare a statement of financial position. Assume that the company will pay $33,500 of the mortgage payable in 2025. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, Buildings, and Equipment.)