Delta Corporation showed the following adjusted trial balance at its year-end, December 31, 2014: Delta Corporation Adjusted
Question:
Delta Corporation showed the following adjusted trial balance at its year-end, December 31, 2014:
Delta Corporation
Adjusted Trial Balance
December 31, 2014
(000s)
Account............................Balance
Accounts payable .................................................................................................... 96
Accounts receivable ................................................................................................ 71
Accumulated depreciation—equipment .................................................................. 76
Allowance for doubtful accounts............................................................................. 8
Cash....................................................................................................................... 70
Cash dividends........................................................................................................ 40
Common shares ...................................................................................................... 100
Cost of goods sold.................................................................................................. 395
Earnings from investment in Tildon Inc.................................................................. 40
Equipment.............................................................................................................. 101
Fees earned ............................................................................................................. 160
Income taxes payable .............................................................................................. 7
Income tax expense ................................................................................................ 52
Interest expense ...................................................................................................... 5
Investment income ................................................................................................. 134
Investment in Tildon Inc. shares............................................................................. 238
Long-term Investment—Delta Inc. bonds, due 2024............................................... 56
Merchandise inventory............................................................................................ 28
Notes payable, due March 2019............................................................................. 74
Operating expenses ................................................................................................ 218
Preferred shares ....................................................................................................... 44
Prepaid rent ............................................................................................................ 6
Retained earnings.................................................................................................... 82
Sales....................................................................................................................... 460
Short-term investment—Cornerstone Inc. shares..................................................... 15
Unearned fees ......................................................................................................... 12
Unrealized holding gains3 ....................................................................................... 2
Required
Using the information provided, prepare a single-step income statement and a classified balance sheet, in thousands.
Analysis Component: Explain the impact on the financial statements if a non-strategic equity investment was listed instead as a strategic equity investment.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly