Question

Prepare financial statements (LO 1, 6) M I , 2011. E4-17 These financial statement items are for Van Dijk Company NV at year-end, July 31 2017. Salaries and wages payable $ 2,040 Notes payable (long-term) $ 1,800 Salaries and wages expense 50,700 Cash 14,200 Utilities expense 22,600 Accounts receivable 9,240 Equipment 30,000 Accumulated depreciation-equip. 6,000 Accounts payable 4,100 Dividends 3,000 Service revenue 62,000 Depreciation expense 2,400 Rent revenue 8,500 Retained earnings (beginning Share capital-ordinary 25,000 of the year) 22,700 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. *E4-18 Ronaldo Coman Use reversing entries.

Answer 1

Van Dijk Company NV 8500 62000 70500 Statement of Income For the period ending 31.7.2017 Rent Revenue Service Revenue Total Revenue Less: Salaries and Wages Expense Utilities Expense Depreciation Expense Net Loss 50700 22600 2400 75700 -5200 Statement of Retained Earnings For the period ending 31.7.2017 Beginning Balance Net Loss 22700 -5200 17500 -3000 14500 Dividends

Amounts Amounts Balance sheet As at 31.7.2017 Assets Current Assets Cash Accounts Receivable Amounts Amounts Liabilities Current Liabilities 14200 Accounts Payable 9240 23440 Salaries and Wages Payable 4100 2040 6140 Non Current Assets Equipment Accumulated Depre - Equip. 1800 30000 -6000 Non Current Liabilities Notes Payable 24000 Shareholders Equity Common Stock Retained Earnings 47440 Total Liabilities & Equity 25000 14500 39500 47440 Total Assets