Question

These items are taken from the financial statements of Crane Company at December 31, 2022. $133,308 15,876 4,032 14,918 103,824 77,112 983 6,678 Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2022) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation-equipment Interest payable Service revenue Interest 75,600 57,456 11,970 117,936 23,587 4,536 18,522

Answer 1

solution! CRANE COMPANY Balance sheet December 31,2022 $14,918 $15,876 $ 4,032 Assets Current Assets Cash Accounts Receivable prepaid insurence Total Current assets property, plant and equipment Land Building Less'. Accumulated Depreciation $34,826 . . $17, 112 $133,308 $157,456) $75,852 Equipment $ 103,824 Less: Accumulated depreciation $(23,587) $801237 233,20) Total Assets $268.027

$16,506 3117,936 Liabilities and Shareholder's Equity Current Liabilities Accounts payable $11,970 Interest payable $4,536 Total Current Liabilities Long-term Liabilities Notes payable Total Liabilities stockholders Equity . . common stock $75,600 Retained Earnings $57,985 ($50, 400+$7,585) Total stockholders Equity Total Liabilities and stockholders Equity $1341442 $133,585 $268,027

+ Net Income Explanation's D Retained Earnings. = Retained Earnings ... on Jan 1,2022 = $50,400 + $7,585 --$57,985 . Net Income = service Revenle - Insurance expense . - Depreciation Expense - Interest: expense = $18,522 - $983 - $6.678-$3,276 = $1,585 2) since nothing is mentioned about Notes payable in the given Question, it has been assumeéthat total notes payable is treated as long-term Liability.

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