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E5-12 (Preparation of a Balance Sheet) Presented below is the trial balance of V

ID: 2503667 • Letter: E

Question

E5-12 (Preparation of a Balance Sheet) Presented below is the trial balance of Vivaldi Corporation at December 31, 2012


  Debits  

  Credits  

Cash

$   197,000

Sales

$  7,900,000

Debt Investments (trading) (cost, $145,000)

153,000

Cost of Goods Sold

4,800,000

Debt Investments (long-term)

299,000

Equity Investments (long-term)

277,000

Notes Payable (short-term)

90,000

Accounts Payable

455,000

Selling Expenses

2,000,000

Investment Revenue

63,000

Land

260,000

Buildings

1,040,000

Dividends Payable

136,000

Accrued Liabilities

96,000

Accounts Receivable

435,000

Accumulated Depreciation

  Debits  

  Credits  

Cash

$   197,000

Sales

$  7,900,000

Debt Investments (trading) (cost, $145,000)

153,000

Cost of Goods Sold

4,800,000

Debt Investments (long-term)

299,000

Equity Investments (long-term)

277,000

Notes Payable (short-term)

90,000

Accounts Payable

455,000

Selling Expenses

2,000,000

Investment Revenue

63,000

Land

260,000

Buildings

1,040,000

Dividends Payable

136,000

Accrued Liabilities

96,000

Accounts Receivable

435,000

Accumulated Depreciation

Explanation / Answer


Income statement:

This statement is also called as statement of revenue and expense. It is one of the three financial statements, remaining are balance sheet and cash flow statement. It measures company