Question

Given the following account information for Ivanhoe Corporation.

Equipment		60,000
Interest Expense		2,600
Interest Payable		570
Retained Earnings		?
Dividends		36,820
Land		137,000
Accounts Receivable		104,000
Bonds Payable		76,000
Notes Payable (due in 6 months)		30,000
Common Stock		71,000
Accumulated Depreciation - Equipment		12,000
Prepaid Advertising		4,900
Service Revenue		330,000
Buildings		81,000
Supplies		1,900
Income Taxes Payable		2,800
Utilities Expense		1,400
Advertising Expense		1,700
Salaries and Wages Expense		54,000
Salaries and Wages Payable		950
Accumulated Depr. - Building		13,500
Cash		44,000
Depreciation Expense		7,500

Prepare a balance sheet in report form for the company as of December 31, 2020. All accounts have normal balances.

Answer 1

Balance Sheet:

Ivanhoe Corporation
Balance Sheet
December 31, 2020.
Assets
Current Assets:
Cash		$44,000
Accounts Receivable		$104,000
Supplies		$1,900
Prepaid Advertising		$4,900
Total Current Assets			$154,800
Land, Buildings & Equipment:
Land		$137,000
Buildings	$81,000
Less: Accumulated Depreciation - Buildings	($13,500)	$67,500
Equipment	$60,000
Less: Accumulated Depreciation - Equipment	($12,000)	$48,000
Total Land, Building & Equipment			$252,500
Total Assets			$407,300
Liabilities and Stockholders' Equity
Current Liabilities:
Interest Payable		$570
Notes Payable		$30,000
Income Taxes Payable		$2,800
Salaries and Wages Payable		$950
Total Current Liabilities			$34,320
Long-term Liabilities:
Bonds Payable		$76,000
Total Long-term Liabilities			$76,000
Total Liabilities			$110,320
Stockholders' Equity:
Common Stock		$71,000
Retained Earnings		$225,980
Total Stockholders' Equity			$296,980
Total Liabilities and Stockholders' Equity			$407,300
Working Notes:
Service Revenue	$330,000
Less: Expenses:
Salaries and Wages Expense	($54,000)
Depreciation Expense	($7,500)
Interest Expense	($2,600)
Utilities Expense	($1,400)
Advertising Expense	($1,700)
Net Income	$262,800
Less: Dividends	($36,820)
Retained Earnings	$225,980