P3-35) The following is a partial list of accounts and their balances for Davids
ID: 2427911 • Letter: P
Question
P3-35) The following is a partial list of accounts and their balances for Davidson Company as at December 31, 2013. Prepare, in good form, the following: a) a statement of changes in equity, and b) a balance using he current/non-current presentation.
Accounts payable: $1,357,000
Accounts receivable: $3,035,000
Accumulated depreciation- equipment: $3,450,000
Accumulated depreciation- plant: $2,500,000
Accumulated other comprehensive income- gain on available-for-sale investments: $140,000
Cash: $457,000
Common shares: $20,000,000
Depreciation- equipment: $690,000
Depreciation- plant: $500,000
Equipment: $5,520,000
Income tax expense: $850,000
Income tax payable: $125,000
Intangible assets: $1,750,000
Inventories: $820,000
Land: $12,000,000
Long-term debt: $30,000,000
Plant: $50,000,000
Preferred shares: $10,000
Retained earnings, December 31, 2013: $7,650,000
Available-for-sale investments- cost: $1,500,000
Available-for-sale investments- valuation adjustment: $140,000
Net income for the year was $838,000 and the company declared $400,000 in dividends during the year. There were items of other comprehensive income in the year. The investments are not expected to be sold in the next 12 months. The long-term debt is repayable over five years, with 20% of the balance due on June 30, 2014.
Explanation / Answer
B)Balance Sheet August 31,2016 Assets Amount $ Amount $ Current assets Cash $457,000 Accounts Receivable 3035000 Inventories 820000 Total Current asets $4,312,000 Non Current assets Long Term Invetments $1,640,000 Fixed assets Land 12000000 Plant 50000000 Accumulated depreciation-Plant 2500000 47500000 Equipment 5520000 Accumulated depreciation-Equipment 3450000 2070000 Intangible assets 1750000 Total Non Current assets $64,960,000 Total Assets $69,272,000 Liabilties Accounts payable 1357000 Longterm Debt payable 6000000 Income tax payable 125000 Current liabilities 7482000 Long Term Liabilities 24000000 Total Liabilities 31482000 Statement of change in equity 37790000 Total $69,272,000 a) Statement of Change in Equity Beginning Common stock 20000000 Preferred stock 10000000 Retained earnings 7650000 Gain on available on sale investment 140000 Ending Balance 37790000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.