1. Prepare a balance sheet for the fiscal year ending April 30, 2020 based on the following transactions:

1) retained earnings                                                                             $1,562,046

2) patent royalty 19,030

3) merchandise inventory                                                                         2550

4) furniture purchased November 1, 2018 30,000

5) promissory note matured                                                                   175,000

6) taxes owed =18,000 + 20% of merchandise inventory                    

7) insurance bought May 1, 2019 for 2 years                                        6,500

8) 20% of customer debt not collectible

9) commissions owed 18,600

10) par value: common $175/share

11) customers owe 40,000

12) ending cash balance equals amount from sale of business property

13) preferred stock: shares sold = 410

14) equipment purchased May 1, 2015                                                   250,000

15) office furniture 5 year service life; SLD

16) mortgage on equipment 652,619

17) common stock sold = 625 shares

18) equipment 10 year service life; SLD

19) par value: preferred $200/share

20) supplies owed 15,750

21) Company Y promissory note matured                                             232,000

22) building purchased May 1, 2016, 700,000

23) bond 108,000

24) land sold at 10% over market value; purchased May 1, 2016

       @ $750,000

25) building 20-year service life: SLD

26) land value appreciates @ 15%/year

27) charitable causes 250,895

28) equipment owed 90,000

29) salaries owed 120, 179

30) copyright royalty 148,600

*SLD = straight-line depreciation

*Appreciation is straight-line appreciation

Answer rating: 100% (QA)

Balance sheet for the fiscal year ending April 30 2021 Equity and Liabilities Am... View the full answer