SV Tech Inc. was incorporated on Jan 1, 20X0. The company offers software consulting services in Vancouver Lower Mainland
The following is an adjusted trial balance for the year ended Dec 31, 20X4			Total marks	#REF!
SV Tech Inc
ADJUSTED TRIAL BALANCE
12/31/20X4
Account name	Debit	Credit
	$	$
Accounts Payable		7,000
Accounts Receivable	30,000
Accumulated Depreciation – Computer Hardware		36,000
Accumulated Depreciation – Furniture		0
Accumulated Other Comprehensive Income		6,000
Advertising Expense	11,000
Cash	38,000
Common Shares (unlimited number of shares authorized, 1,000 issued)		1,000
Contributed Surplus		8,000
Depreciation Expense	0
Computer Hardware	48,000
Furniture	36,000
Goodwill	20,000
Income tax expense	20,000
Note Payable (instalments of $5,000/year)		30,000
Prepaid Rent	4,000
Rent Expense	48,000
Retained Earnings, beginning of year		22,000
Salary Expense	300,000
Service Revenue		445,000
Supplies	5,000
Supplies Expense	15,000
Unearned Service Revenue		20,000
Totals	575000	575000	0
The following events were omitted from the trial balance above.
Note: You may need to adjust the account balances above or the number of shares issued by the transactions below before drafting the year-end financial statements.
·         On October 21st, 20X4, the company declared $20,000 in cash dividends for the year 20X4. $4,000 was paid on January 22, 20X5, and the balance of the dividends was paid on January 23, 20X5.
·         Unearned Service Revenue as at December 31, 20X4, should be zero.
·         The controller estimates that the company may not collect $3,000 of the accounts receivable balance as at December 31, 20X4.
·         The office furniture was purchased on January 1, 20X4. It is estimated to have a useful life of 8 years with a residual value of $4,000.
.         In October 20X4, computer hardware, which was acquired in 20X0 with an estimated useful life of 4 years, was considered to be too slow.
IT professionals determined that the hardware would not be adequate to run the SaaS scheduled to be purchased in January 20X5.
Therefore, the company invested in new computer hardware on January 2, 20X5, and donated all used hardware to a local not-for-profit organization.
Required:
Prepare in proper form a classified Statement of Financial Position as at December 31, 20X4.

 

Answer rating: 100% (QA)

SOLUTION To prepare a classified Statement of Financial Position also known as a Balance Sheet as of ... View the full answer