Exercise 2: Statement of Financial Position Given the following account informat
ID: 2812010 • Letter: E
Question
Exercise 2: Statement of Financial Position Given the following account information for Leong Corporation, sheet in report form for the company as of December 31, 2010. A normal balances. Equipment Interest Expense Interest Payable Retained Earnings Dividends Land Inventory Bonds Payable Notes Payable (due in 6 months) Common Stock Accumulated Depreciation - Eq. Prepaid Advertising Revenue Buildings Supplies Taxes Payable Utilities Expense Advertising Expense Salary Expense Salaries Payable Accumulated Depr. Bld. Cash Depreciation Expense, 40,000 2,400 600 2 50,400 137,320 102,000 78,000 14,400 80,000 10,000 5,000 331,400 80,400 1,860 3,000 1,320 1,560 53,040 900 15,000 50,000 Building & Equipment 8,000Explanation / Answer
Leong corporation
Balance Sheet
December 31,2010
Assets
Cash $50,000.00
Inventory $1,02,000.00
Supplies $1,860.00
Prepaid Advertising $5,000.00
Total Current Assets $1,58,860.00
Land $1,37,320.00 $1,37,320.00
Building $80,400.00
Accumulated Depreciation -Building $15,000.00 $65,400.00
Equipment $40,000.00
Accumulated Depreciation -Equipment $10,000.00 $30,000.00 $2,32,720.00
Total Assets $3,91,580.00
Liabilities & Stockholder's Equity
Notes Payable $14,400.00
Taxes Payable $3,000.00
Salaries & Wages Payable $900.00
Interest Payable $600.00
Total Current Liabilities $18,900.00
Long Term Liabilities
Bonds Payable $78,000.00
Total Liabilities $96,900.00
Common Stock $80,000.00
Retained Earnings $2,14,680.00 $2,94,680.00
Total Stock holder's Equity
Total Liabilities and stockholder's equity $3,91,580.00
Revenue $3,31,400.00
Expenses
Salaries & Wages $53,040.00
Utilities $1,320.00
Advertising Expenses $1,560.00
Depreciation $8,000.00
Interest $2,400.00
Dividend $50,400.00
Retained Earnings $2,14,680.00
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