Ivanhoe Ltd. started business on January 1, 2024. The following transactions occurred in 2024: 1. 2....

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Ivanhoe Ltd. started business on January 1, 2024. The following transactions occurred in 2024: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. On January 1, the company received $690,000 when it issued 10,000 common shares. On January 1, the company borrowed $253,000 from the bank at 6% annual interest. The loan principal is due in three years. On January 3, the company purchased land and a building for a total of $708,000 cash. The land was recently appraised at a fair market value of $404,000. (Note: Because the building will be depreciated in the future and the land will not, these two assets should be recorded in separate accounts.) Inventory costing $190,000 was purchased, of which $101,000 was on account. Sales to customers totalled $308,680. Half of these sales were on account, and the balance were cash sales. The cost of the inventory that was sold to customers in transaction 5 was $126,000. Collections from customers on account totalled $132,000. Payments to suppliers on account totalled $94,000. During the year, employees earned wages of $96,000, of which $4,600 was unpaid at year end. The interest on the bank loan was recognized and paid for the year. The building was estimated to have a useful life of eight years and a residual value of $20,000. The company uses the straight-line method of depreciation. The company declared dividends of $16,000 during the year, of which half were to be paid in January 2025. Trans. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Total $ Cash 690000 253000 -708000 -89000 154340 132000 -94000 -91400 -15180 i -8000 223760 $ Accounts Receivable i i i i 154340 i -132000 i i i i i 22340 $ Inventory i i 190000 i -126000 i i i i i 64000 $ Building i 304000 i i i i i -35500 i 268500 $ Land i i 404000 i i i i i i i i i 404000 $ Accounts Payable i i i 101000 i i i -94000 i i i i 7000 $ Wages Payable i i i i i i i i 4600 i i i 4600 $ Dividends Payable i i i i i i i i i i 8000 8000 $ Loan Payable i 253000 i i i i i i i i i i 253000 $ Common Shares 690000 i i i i i i i i i i 690000 $ Retained Earnings -126000 -96000 i 308680 -35500 i -16000 i i i i i -15180 i i i i 20000 Revenue/Expense/ Dividend Declared Not Applicable Not Applicable Not Applicable Not Applicable Revenue Expense Not Applicable Not Applicable Expense Expense Expense V Dividend Declared V Prepare a statement of financial position (unclassified) for 2024. (List assets in order of liquidity.) Ivanhoe Ltd. Statement of Financial Position LA $ +A $ $ 11 $ पी Ivanhoe Ltd. started business on January 1, 2024. The following transactions occurred in 2024: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. On January 1, the company received $690,000 when it issued 10,000 common shares. On January 1, the company borrowed $253,000 from the bank at 6% annual interest. The loan principal is due in three years. On January 3, the company purchased land and a building for a total of $708,000 cash. The land was recently appraised at a fair market value of $404,000. (Note: Because the building will be depreciated in the future and the land will not, these two assets should be recorded in separate accounts.) Inventory costing $190,000 was purchased, of which $101,000 was on account. Sales to customers totalled $308,680. Half of these sales were on account, and the balance were cash sales. The cost of the inventory that was sold to customers in transaction 5 was $126,000. Collections from customers on account totalled $132,000. Payments to suppliers on account totalled $94,000. During the year, employees earned wages of $96,000, of which $4,600 was unpaid at year end. The interest on the bank loan was recognized and paid for the year. The building was estimated to have a useful life of eight years and a residual value of $20,000. The company uses the straight-line method of depreciation. The company declared dividends of $16,000 during the year, of which half were to be paid in January 2025. Trans. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Total $ Cash 690000 253000 -708000 -89000 154340 132000 -94000 -91400 -15180 i -8000 223760 $ Accounts Receivable i i i i 154340 i -132000 i i i i i 22340 $ Inventory i i 190000 i -126000 i i i i i 64000 $ Building i 304000 i i i i i -35500 i 268500 $ Land i i 404000 i i i i i i i i i 404000 $ Accounts Payable i i i 101000 i i i -94000 i i i i 7000 $ Wages Payable i i i i i i i i 4600 i i i 4600 $ Dividends Payable i i i i i i i i i i 8000 8000 $ Loan Payable i 253000 i i i i i i i i i i 253000 $ Common Shares 690000 i i i i i i i i i i 690000 $ Retained Earnings -126000 -96000 i 308680 -35500 i -16000 i i i i i -15180 i i i i 20000 Revenue/Expense/ Dividend Declared Not Applicable Not Applicable Not Applicable Not Applicable Revenue Expense Not Applicable Not Applicable Expense Expense Expense V Dividend Declared V Prepare a statement of financial position (unclassified) for 2024. (List assets in order of liquidity.) Ivanhoe Ltd. Statement of Financial Position LA $ +A $ $ 11 $ पी