Question

These items are taken from the financial statements of Novak Corp. at December 31, 2018 Buildings Accounts receivable Prepaid insurance Cash Equipment $148,120 17,640 6,552 16,576 115,360 85,680 812 280 7.420 3,640 86,800 Office expense Income tax expense Depreciation expense Interest expense Common shares Retained earnings Uanuary 1,2018) 56,000 Accumulated depreciation-building Accounts payable Income taxes payable Bank loan payable (due July 1, 2020) 131040 63840 11,760

Answer 1

NOVAk CORP Statement of financial position For the year Ended December 31, 2018 Assets Current Assets Cash Accounts receivable Prepaid Insurance $16,576 $17,640 $6,552 Total Current Assets $40,768 Plant, Property, and Equipment Land Buildings Less: Accumulated depreciation building Equipment Less: Accumulated depreciation - Equipment $85,680 $63,840$84,280 26,208 $89,152 $1,48,120 $1,15,360 $2,59,112 $2,99,880 Total Plant, Property, and Equipment Total Assets Liabilities and Shareholder's Equity Current Liabilities Accounts Payable Interest Payable Note payable Income tax payable $11,760 $5,040 $19,040 $1,540 Total Current Laibilities $37,380 Long Term Liabilities Note payable $1,12,000 $1,49,380 Total Liabilities Shareholder Equity $86,800 $63,700 Common Stock Retained earnings ($56,000 + $7,700) $1,50,500 $2,99,880 Total Shareholder Equity Total Liabilities and Shareholder's Equity