Question

ES Question 6 Presented below is the trial balance of Carla Corporation at December 31, 2017. Debit Credit $199,850 Cash Sales Debt Investments (trading) (cost, $145,000) Cost of Goods Sold $8,103,200 156,200 4,800,000 301,850 279,850 Debt Investments (Iong-term) Equity Investments (long-term) Notes Payable (short-term) Accounts Payable Selling Expenses Investment Revenue Land Buildings Dividends Payable Accrued Liabilities Accounts Receivable Accumulated Depreciation-Buildings Allowance for Doubtful Accounts Administrative Expenses Interest Expense Inventory Gain (extraordinary) 93,200 458,200 2,003,200 67,270 263,200 1,042,850 138,850 99,200 438,200 152,000 28,200 904,270 215,270 599,850 84,270 902,850 Notes Payable (long-term) 603,200 Equipment Bonds Payable Accumulated Depreciation-Equipment Franchises Common Stock ($5 par) Treasury Stock 1,002,850 60,000 160,000 1,003,200 194,200

Answer 1

CARLA CORPORATION Balance Sheet At December 31, 2017 Current assets: Cash Debt investment (Trading) Accounts receivable Less: Allowance fordoubtful accounts Inventory Total current assets Long term investments Debt investment Equity investments Total Long term investments Property, plant, and equipment Land Buildings Less: Accumulated depreciation-Buildings Equipment Less: Accumulated depreciation-Equipment 199,850 156,200 438,200 28,200 410,000 599,850 1,365,900 301,850 279,850 581,700 263,200 1,042,850 152,000 890,850 603,200 60,000543,200 roperty,plant, and equipment 1,697,250 Intangible assets Franchises Patents Total intangible assets Total assets 160,000 195,000 355,000 3,999,850

Liabilities and Stockholders' equit Current liabilities: Accounts payable Note payable (short term Dividends payable Accrued liabilities Total current liabilities Long term debt Note payable (long term Bonds payable Total long term liabilities Total liabilities Stockholders' equit Paid in capital Common stock ($5 par Paid-in capital in excess of par Retained earnings Total paid in capital and retained earnings Less: Treasury stock Total stockholders' equity Total liabilties and stockholders' equity 458,200 93,200 138,850 9,200 789,450 902,850 1,002,850 1,905,700 2,695,150 1,003,200 82,850 1,086,050 412,850 1,498,900 -194,200 1,304,700 3,999,850

Working note for retained earnings.

Sales Less: Cost of goods sold Gross profit Add: Investment revenue 8,103,200 -4,800,000 3,303,200 67,270 84,270 Gain extraordina Less: Expenses: Administrative expense Interest expense Selling expense 904,270 215,270 2,003,200 332,000 Net income Beginning retained earnings Add: Net income Ending retained earnings 80,850 332,000 412,850