The following items are from the liability and shareholders' equity sections of Devon Limited's December 31, 2015,
Question:
The following items are from the liability and shareholders' equity sections of Devon Limited's December 31, 2015, statement of financial position:
Accounts payable...............................................................$ 2,900
Current portion of mortgage payable...........................................3,570
Mortgage payable................................................................71,430
Retained earnings...............................................................338,290
Common shares....................................................................39,225
Unearned revenue................................................................16,295
Instructions
(a) Identify the statement of financial position category in which each of the above items should be classified.
(b) Prepare the liabilities and equity sections of the statement of financial position.
(c) If you completed P2-2B, compare the total assets in P2-2B with the total liabilities and shareholders' equity in P2-3B. Do these two amounts agree?
Step by Step Answer:
a Item Category Accounts payable Current liabilities Current portion of mortgage payable Curr...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
