You are presented with the following alphabetical list of
accounts and balances (in thousands) for Sunland Enterprises Inc.
at June 30, 2018. All accounts have a normal balance.
Accounts payable | $ 3,100 | Income tax payable | $ 100 | ||||
Accounts receivable | 3,000 | Interest expense | 100 | ||||
Accumulated depreciation—buildings | 3,600 | Land | 7,600 | ||||
Accumulated depreciation—equipment | 900 | Long-term investments | 3,800 | ||||
Buildings | 13,900 | Inventory | 5,200 | ||||
Cash | 1,200 | Mortgage payable, due 2025 | 16,000 | ||||
Common shares | 5,500 | Office expense | 2,900 | ||||
Cost of goods sold | 14,100 | Prepaid insurance | 900 | ||||
Dividends declared | 2,100 | Retained earnings | 6,100 | ||||
Equipment | 3,300 | Sales | 23,900 | ||||
Income tax expense | 1,100 |
In addition to this information, common shares in the amount of
$2,500 were issued during the year and $1,100 of the mortgage is
currently due.
a) Prepare an income statement for the year
b) Prepare a statement of changes in equity for the year
c) Prepare a statement of financial position for the year
a) Income statement for the year:
particulars | Amount($) | |
Sales | 23900 | |
Cost of Goods sold | (14100) | 9800 |
Expenses: | ||
interest expenses | 100 | |
office expenses | 2900 | |
dividend declared | 2100 | |
income tax expenses | 1100 | 6200 |
Excess of income over expenditure |
3600 |
b)statement of changes in equity for the year
opening number of shares | 3000 |
current year shares issued | 2500 |
closing no of shares |
5500 |
c) financial position for the year
Liabilities | Amount($) | Assets | Amount($) |
Equity | 5500 | land | 7600 |
retained earnings | 6100 | Buildings | 10300 |
current year profit | 3600 | equipment | 2400 |
mortgage payable(16000-1100) | 14900 | long term investments | 3800 |
income tax payable | 100 | inventory | 5200 |
accounts payable | 3100 | prepaid insurance | 900 |
accounts receivable | 3000 | ||
cash | 100 | ||
33300 | 33300 |
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