These items are taken from the financial statements of Dragons Ltd. at December 2021: Accounts payable $
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Question:
These items are taken from the financial statements of Dragons Ltd. at December 2021:
Accounts payable | $ 21,050 | Income tax expense | $ 5,200 | |
Accounts receivable | 20,780 | Interest expense | 4,550 | |
Accumulated depreciation- | Interest payable | 2,100 | ||
buildings | 50,600 | Land | 194,000 | |
Accumulated depreciation- | Long-term investments | 28,970 | ||
equipment | 21,470 | Mortgage payable | 104,000 | |
Buildings | 133,800 | Operating expenses | 158,680 | |
Cash | 24,040 | Prepaid insurance | 1,420 | |
Common shares | 140,000 | Retained earnings, January 1 | 116,520 | |
Equipment | 66,100 | Service revenue | 183,040 | |
Supplies | 1,240 | |||
Required:
- Calculate net income and the ending balance of retained earnings at December 31, 2021. It is necessary to make a formal statement of income or statement of changes in equity.
- Prepare a statement of financial position. Assume that the company will pay $30,500 of the mortgage payable in 2022.
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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