Question 4 Question 4 Jia Inc. applies ASPE and had the following statement of f
ID: 2461047 • Letter: Q
Question
Question 4
Question 4
Jia Inc. applies ASPE and had the following statement of financial position at the end of operations for 2013:JIA INC.
Statement of Financial Position
December 31, 2013 Cash $20,000 Accounts payable $ 30,000 Accounts receivable 21,200 Notes payable 41,000 FV-NI investments 32,000 Common shares 100,000 Equipment (net) 81,000 Retained earnings 23,200 Land 40,000 $194,200 $194,200
During 2014, the following occurred:
1. Jia Inc. sold some of its fair value—net income investment portfolio for $24,000. This transaction resulted in a gain of $3,400 for the firm. At December 31, 2014, the remaining fair value—net income investments in the portfolio had fair value of $11,400 and original cost of $13,000. No investments were purchased in 2014. 2. A tract of land was purchased for $18,000 cash. 3. Long-term notes payable in the amount of $19,000 were retired before maturity by paying $19,000 cash. 4. An additional $32,000 in common shares was issued. 5. Dividends totalling $13,200 were declared and paid to shareholders. 6. Net income for 2014 was $32,000 after allowing for depreciation of $12,000. 7. Land was purchased through the issuance of $30,000 in bonds. 8. At December 31, 2014, cash was $46,000; accounts receivable was $41,600; and accounts payable remained at $30,000.
Explanation / Answer
To Investment 20,600
To Profit $ Loss 3,400
To Cash A/c 18,000
To Cash A/c 19,000
To Common Shares 32,000
To Cash 13,200
To Equipment 12,000
Profit & Loss= 44,000-12,000=32,000-13,200= 18,800 transfer to Retain Earnings
To Bonds 30,000
Cash A/c
Particulars
Amount($)
Particulars
Amount($)
To Balance b/d
20,000
By Land
18,000
To Investment
20,600
By Notes payable
19,000
To Retained Earnings
3,400
By Retained Earnings
13,200
To common shares
32,000
To Retained Earnings
20,200
By Closing Balance
46,000
99,600
Balance sheet
Cash
46,000
Accounts payable
30,000
Accounts Receivable
41,600
Notes Payable
22,000
FV Investment
11,400
Common shares
132,000
Equipment
69,000
Retained Earnings
42,000
Land
88,000
Bonds
30,000
256,000
256,000
Particulars
Amount($)
Particulars
Amount($)
To Balance b/d
20,000
By Land
18,000
To Investment
20,600
By Notes payable
19,000
To Retained Earnings
3,400
By Retained Earnings
13,200
To common shares
32,000
To Retained Earnings
20,200
By Closing Balance
46,000
99,600
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.