Question

Gold Jewellers Inc. is developing its annual financial statements for 2015. The following amounts were correct at December 31, 2015: cash, $ 58,000; trade receivables, $ 71,000; merchandise inventory, $ 154,000; prepaid insurance, $ 1,000; investment in shares of Z Corporation (long term), $ 36,000; store equipment, $ 67,000; used store equipment held for disposal, $ 9,000; accumulated depreciation, store equipment, $ 13,000; trade payables, $ 58,000; long- term note payable, $ 42,000; income taxes payable, $ 9,000; retained earnings, $ 164,000; and common shares, 100,000 shares outstanding (originally issued at $ 1.10 per share).
Required:
1. Based on these data, prepare the company’s statement of financial position at December 31, 2015. Use the following major captions (list the individual items under these captions):
a. Assets: current assets; long- term investments; property, plant, and equipment; and other assets.
b. Liabilities: current liabilities and non- current liabilities.
c. Shareholders’ equity: share capital and retained earnings.
2. What is the carrying amount of store equipment? Explain what this value means.


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  • CreatedAugust 04, 2015
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