Iona Inc. has the following assets, liabilities, and equity amounts: Total assets: $55,000 Retained...

 

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Iona Inc. has the following assets, liabilities, and equity amounts: • Total assets: $55,000 • Retained earnings: $10,000 . Common shares: $5,000 • Income tax owed: $2,000 Trade creditors: $25,000 • Long-term bank loan: $12,000 • Accrued expenses: $1,000 The net income for the year was $8,000, after payment of $2,000 in inter- est and $5,000 in income tax. Required Show how the above data would be presented in the liabilities and equity sections of the balance sheet. Iona Inc. has the following assets, liabilities, and equity amounts: • Total assets: $55,000 • Retained earnings: $10,000 . Common shares: $5,000 • Income tax owed: $2,000 Trade creditors: $25,000 • Long-term bank loan: $12,000 • Accrued expenses: $1,000 The net income for the year was $8,000, after payment of $2,000 in inter- est and $5,000 in income tax. Required Show how the above data would be presented in the liabilities and equity sections of the balance sheet.

Answer rating: 100% (QA)

To present the given data in the liabilities and equity sections of the balance sheet we can organiz... View the full answer