These items are taken from financial statements of Beaulieu Limited for the year ended December 31, 2015:
Question:
These items are taken from financial statements of Beaulieu Limited for the year ended December 31, 2015:
Cash.....................................................................................$ 8,000
Buildings................................................................................80,000
Accumulated depreciation-buildings..............................................12,000
Accounts receivable......................................................................7,500
Prepaid insurance.............................................................................250
Equipment...................................................................................32,000
Accumulated depreciation-equipment................................................19,200
Accounts payable.....................................................................................9,550
Salaries payable........................................................................................3,000
Common shares......................................................................................20,000
Income tax expense..................................................................................5,000
Long-term investments...........................................................................20,000
Retained earnings, Jan. .......................................................................1 34,000
Dividends.................................................................................................3,500
Service revenue......................................................................................80,500
Depreciation expense...............................................................................5,400
Insurance expense....................................................................................2,400
Salaries expense.....................................................................................33,000
Utilities expense.......................................................................................3,700
Interest expense.......................................................................................8,000
Interest revenue..........................................................................................500
Land......................................................................................................50,000
Mortgage payable.......................................................................................80,000
Additional information:
1. Beaulieu started the year with $15,000 of common shares and issued $5,000 more during the year.
2. $10,000 of the mortgage payable is due to be repaid within the next year.
Instructions
(a) Prepare an income statement, statement of changes in equity, and statement of financial position for the year.
(b) Explain how each financial statement is related to the others.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine