These items are taken from the financial statements of Ivanhoe Corporation for the year ended December 31,
Question:
These items are taken from the financial statements of Ivanhoe Corporation for the year ended December 31, 2018:
Retained earnings, January 1 | $215,500 | ||
Cash | 13,400 | ||
Salaries payable | 3,000 | ||
Utilities expense | 2,000 | ||
Equipment | 59,500 | ||
Accounts payable | 16,000 | ||
Buildings | 62,000 | ||
Common shares | 38,200 | ||
Dividends declared | 5,000 | ||
Service revenue | 212,900 | ||
Prepaid insurance | 2,000 | ||
Repairs and maintenance expense | 3,300 | ||
Land | 179,500 | ||
Depreciation expense | 6,200 | ||
Accounts receivable | 13,700 | ||
Insurance expense | 2,700 | ||
Salaries expense | 119,800 | ||
Accumulated depreciation—equipment | 17,600 | ||
Income tax expense | 6,000 | ||
Supplies | 200 | ||
Operating expense | 39,400 | ||
Supplies expense | 1,000 | ||
Bank loan payable, due 2021 | 17,500 | ||
Held for trading investments | 21,000 | ||
Accumulated depreciation—buildings | 17,000 | ||
Interest expense | 1,500 | ||
Interest revenue | 500 |
Additional information:
1. | Ivanhoe started the year with $34,500 of common shares and issued $3,700 more during the year. |
2. | $1,500 of the bank loan payable is due to be repaid within the next year. |
a/ Prepare an income statement for the year.
B/ Prepare a statement of changes in equity for the year. (If an amount reduces the account balance then enter amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
C/Prepare a statement of financial position for the year. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, Buildings, and Equipment.)
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine