Question

The following information is available for Ivanhoe Company Accounts receivable $3,000 Cash $6,320 Accounts payable 4,000 Supplies 3,890 Interest payable 550 Unearned service revenue 830 Salaries and wages expense 4,100 Service revenue 43,350 Notes payable 33,000 Salaries and wages payable 820 Common stock 63,100 Depreciation expense 610 Inventory 2,880 Equipment (net) 110,100 Using the information above, prepare a balance sheet as of December 31, 2022. (List assets in order of liquidity.) Ivanhoe Company Balance Sheet Assets

Answer 1

Assets
Current Assets:
Cash	$                 6,320
Accounts receivable	$                 3,000
Inventory	$                 2,880
Supplies	$                 3,890
Total current assets		$           16,090
Non-Current Assets:
Equipment (net)	$           1,10,100
Total non current assets		$        1,10,100
Total assets		$        1,26,190
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$                 4,000
Interest payable	$                    550
Unearned service revenue	$                    830
Salaries and wages payable	$                    820
Notes payable	$              33,000
Total current liabilities		$           39,200
Stockholders' Equity:
Common stock	$              63,100
Retained earnings	$              23,890
Total stockholders' equity		$           86,990
Total liabilities and Stockholders' Equity		$        1,26,190
Note: The trial balance does not balance; the plug in figure is treated
as Retained Earnings, which, will have a debit balance of $14,750.
WORKSHEET FOR NET INCOME:
Service revenue		$           43,350
Less: Expenses:
Salaries and wages expense	$                 4,100
Depreciation expense	$                    610
Total expenses		$              4,710
Net income		$           38,640
TRIAL BALANCE
	Debit	Credit
Accounts receivable	$                 3,000
Accounts payable		$              4,000
Interest payable		$                 550
Salaries and wages expense	$                 4,100
Notes payable		$           33,000
Common stock		$           63,100
Inventory	$                 2,880
Cash	$                 6,320
Supplies	$                 3,890
Unearned service revenue		$                 830
Service revenue		$           43,350
Salareisa and wages payable		$                 820
Depreciation expense	$                    610
Equipment (net)	$           1,10,100
Total	$           1,30,900	$        1,30,900
Retained earnings [Plug in figure] 145650-130900 =	$              14,750	$           14,750
Total	$           1,45,650	$        1,45,650