(Prepare an income statement and balance sheet from a list of accounts, LO 4, 5)

You have been provided with the following alphabetical list of accounts for Sudbury Ltd. for 2004. Use the information to prepare an income statement for the year ended December 31, 2004 and balance sheet as of December 31, 2004. You should be able to figure out how to treat accounts that have names that are unfamiliar to you by applying your understanding of the financial statements learned in this chapter.

Amounts are in thousands of dollars.

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Accounts payable Accounts receivable Accrued liabilities Accumulated amortization Advances to employees $ 525 Equipment, furniture and fixtures $8,000 550 Income tax expense 1,500 100 7,500 Income taxes payable 75 Income taxes recoverable from government 45 25 Interest expense 1,400 Advertising expenses 950 Interest revenue 10 Amortization expense 2,300 Inventory 850 Building 12,000 Capital stock 10,000 Investments in the shares of other corporations Land 1,200 1,000 Cash 100 Long-term debt (non-current portion) 9,000 Cash revenue 2,250 Mortgage payable (non-current portion) 5,000 Charitable donations made 1,000 Other expense 200 Cost of assets lost in fire 900 Other non-current assets 500 Cost of sales 3,750 Patents 2,000 Credit revenue 14,500 Prepaid assets 20 Current portion of long-term debt 250 Retained earnings at the beginning of the year 7,520 Current portion of mortgage payable Deposits from customers Dividends 300 Selling expenses 1,350 25 Wages expense 2,200 250 Wages payable 35