Balance Sheet as of March 31st 2016 is given below Assets Land Furniture Accm. Dep Cash Bank

Balance Sheet as of March 31st 2016 is given below  

Transcribed Image Text:

Assets Land Furniture Accm. Dep Cash Bank TOTAL 500000 -100000 200,000 400,000 1,200000 1,800,000 Liabilities + Owners Equity Accounts Payable Common Stock APIC TOTAL 200,000 800,000 800,000 1,800,000 The following transactions took place during the year ended March 31st 2017: 1. The company borrowed $200,000 for 5 years on 1st July 2016. The interest rate on the loan was 5%. 2. The company invested $1,000,000 in a certificate of deposit on September 30th 2016. The certificate of deposit carries an interest rate of 20%. 3. On January 1st 2017, new furniture worth $100,000 was purchased. All the furniture had a useful life of 10 years. Annual Depreciation on new furniture is $10,000 and for the existing furniture it is $50,000. 4. We declared dividend worth $20,000 and issued 2000 shares with a face value of $10 and a market value of $25. 5. We acquired 2000 shares of another company for $4 per share. Prepare the Balance Sheet as of March 31st 2017 and calculate the net income for the year ended March 31st 2017. Assets Land Furniture Accm. Dep Cash Bank TOTAL 500000 -100000 200,000 400,000 1,200000 1,800,000 Liabilities + Owners Equity Accounts Payable Common Stock APIC TOTAL 200,000 800,000 800,000 1,800,000 The following transactions took place during the year ended March 31st 2017: 1. The company borrowed $200,000 for 5 years on 1st July 2016. The interest rate on the loan was 5%. 2. The company invested $1,000,000 in a certificate of deposit on September 30th 2016. The certificate of deposit carries an interest rate of 20%. 3. On January 1st 2017, new furniture worth $100,000 was purchased. All the furniture had a useful life of 10 years. Annual Depreciation on new furniture is $10,000 and for the existing furniture it is $50,000. 4. We declared dividend worth $20,000 and issued 2000 shares with a face value of $10 and a market value of $25. 5. We acquired 2000 shares of another company for $4 per share. Prepare the Balance Sheet as of March 31st 2017 and calculate the net income for the year ended March 31st 2017.

Answer rating: 100% (QA)

Balance Sheet as of March 31st 2017 Assets Land 200000 Furniture Existing 500000 Initial 50000 Depre... View the full answer