Fountain Corporation is a service company. Fountain has the following balances at the start of January...

 

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Fountain Corporation is a service company. Fountain has the following balances at the start of January 2020: Share Capital $ 42,000 Retained Earnings $ 20,000 Accounts Receivable $ 14,000 Accounts Payable $ 8,000 Cash $ 16,000 Equipment $ 40,000 The following transactions took place during 2020: 10 January: Provided services on account $ 50,000. 20 January: Borrowed loan from a Bank $ 20,000. 25 February: Collected $ 4,000 cash from the Accounts Receivable. 31 July: Paid $ 2,000 cash interest on the loan. 20 August: Paid $ 3,000 cash to the accounts payable. 25 September: Paid $ 28,000 for Salaries. 10 November: Provided services cash $ 50,000. 31 December: Collected $ 9,000 cash in advance for services to be performed over the 3 years 2021, 2022 and 2023. 31 December: Paid $ 19,000 cash in advance for an insurance policy for 2 years 2021 and 2022. 31 December: Paid $ 46,990 cash Dividends to the shareholders. Required: Prepare the Balance Sheet for Fountain Corporation on 31 December 2020 Fountain Corporation is a service company. Fountain has the following balances at the start of January 2020: Share Capital $ 42,000 Retained Earnings $ 20,000 Accounts Receivable $ 14,000 Accounts Payable $ 8,000 Cash $ 16,000 Equipment $ 40,000 The following transactions took place during 2020: 10 January: Provided services on account $ 50,000. 20 January: Borrowed loan from a Bank $ 20,000. 25 February: Collected $ 4,000 cash from the Accounts Receivable. 31 July: Paid $ 2,000 cash interest on the loan. 20 August: Paid $ 3,000 cash to the accounts payable. 25 September: Paid $ 28,000 for Salaries. 10 November: Provided services cash $ 50,000. 31 December: Collected $ 9,000 cash in advance for services to be performed over the 3 years 2021, 2022 and 2023. 31 December: Paid $ 19,000 cash in advance for an insurance policy for 2 years 2021 and 2022. 31 December: Paid $ 46,990 cash Dividends to the shareholders. Required: Prepare the Balance Sheet for Fountain Corporation on 31 December 2020

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