The adjusted balances at December 31, 2020, for Derlak Enterprises are shown in alphabetical order below: 2020
Fantastic news! We've Found the answer you've been seeking!
Question:
The adjusted balances at December 31, 2020, for Derlak Enterprises are shown in alphabetical order below:
2020 | 2019 | |||||
Accounts payable | $ | 63,800 | $ | 11,000 | ||
Accumulated amortization, franchise | 20,600 | 12,600 | ||||
Accumulated amortization, patent | 4,000 | 2,800 | ||||
Accumulated depreciation, equipment | 79,800 | 66,500 | ||||
Accumulated depreciation, tools | 49,000 | 49,400 | ||||
Accumulated depreciation, vehicles | 110,200 | 108,800 | ||||
Cash | 16,000 | 30,200 | ||||
Equipment | 198,000 | 100,000 | ||||
Franchise | 55,600 | 55,600 | ||||
Lee Derlak, capital* | 210,320 | 45,620 | ||||
Lee Derlak, withdrawals | 46,000 | 38,400 | ||||
Notes payable, due in 2023 | 163,000 | 148,600 | ||||
Office supplies | 3,800 | 3,720 | ||||
Operating expenses | 782,200 | 572,600 | ||||
Patent | 30,000 | 30,000 | ||||
Prepaid rent | 35,000 | 48,000 | ||||
Salaries payable | 36,300 | 23,700 | ||||
Service revenue | 844,500 | 775,700 | ||||
Tools | 150,920 | 102,200 | ||||
Vehicles | 264,000 | 264,000 | ||||
*The owner, Lee Derlak, made no additional investments during the year.
Required:
Prepare a comparative classified balance sheet at December 31, 2020. (Record the accounts in the given order. Enter all amounts as positive values.)
Analysis Component:
Are Derlak's assets financed mainly by debt or equity in 2019? in 2020? Is the change in how assets were financed from 2019 to 2020 favourable or unfavourable?
Related Book For
Accounting For Managers Interpreting Accounting Information for Decision Making
ISBN: 978-1119979678
4th edition
Authors: Paul M. Collier
Posted Date: