Question

E4-17 These financial statement items are for Van Dijk Company NV at year-end, July 31, 2017. statements. $ 1,800 14,200 9,240 6,000 3,000 2,400 Notes payable (long-term) Cash Accounts receivable Accumulated depreciation-equip. Dividends Depreciation expense Retained earnings (beginning of the year) $ 2,040 50,700 22,600 30,000 4,100 62,000 Salaries and wages payable Salaries and wages expense Utilities expense Equipment Accounts payable Service revenue 8,500 25,000 Rent revenue 22,700 Share capital-ordinary Instructions (a) Prepare an income statement and a retained earnings statement for the year. (b) Prepare a classified statement of financial position at July 31.

Answer 1

(a) Van Dijk Company Income Statement For the year ended July 31, 2017 Revenues Service revenue Rent revenue Total Revenues Expenses Salaries and wages expense Depreciation Expense - Equipment Utilities expense Total Expenses Net Income (Loss) $62,000 $8.500 $70,500 $50.700 $2.400 $22.600 $75,700 -$5,200 Van Dijk Company Statement of Retained Earnings For the year ended July 31, 2017 Retained earnings. (beginning of the year) Add: Net income (Loss) $22,700 -$5,200 $17.500 $3,000 $14,500 Less: Dividends Retained earnings. (closing of the year) $14,200 $9,240 $23,440 $30,000 $6,000 $24.000 $47,440 Statement of financial position July 31, 2017 Assets Current Assets Cash Accounts Receivable Total Current Assets Property Plant and Equipment Equipment Less: Accumulated Depreciation Equipment Total Assets Liabilities and Shareholder's Equity Current liabilities Accounts Payable Salaries and wages payable Total current liabilities Long-term liabilities Notes Payable (long-term) Total liabilities Stockholders' equity Common Stock (Share capital-ordinary) Retained Earnings Total Shareholder's equity Total Liabilities & Shareholder's Equity $4,100 $2,040 $6.140 $1.800 $7.940 $25.000 $14.500 $39.500 $47,440