Question

Ivanhoe Management Services began business on January 1, 2020, with a capital investment of $110,700. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows. Ivanhoe Management Services Worksheet For the Year Ended December 31, 2020 Trial Balance Dr. Cr. 13,800 28.100 3.684 65.900 129.900 58.800 Cash Accounts Receivable Prepald Insurance Land Buildings Equipment Accounts Payable Uneamed Ret Revenue Mortgage Payable Owner's Capital Owner's Drawing Service Revenue Rent Reven Adjusted Trial Balance Dr. Cr. 13.800 28.100 2456 65,900 129.900 58,800 12.100 1.200 110.700 154.184 21700 91300 33200 12.100 6.000 110.700 154184 21.700 91.300 29.000 4 $ 4 % 5 6 & 7 8 9 0 W E R T Y U O P D G H K x C V B N < M D alt command option

Answer 1

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$ 44,356 Land $ 247,800 $ 292,156 Ivanhoe Management Services Balance Sheet December 31, 2020 Assets Current Assets Cash $ 13,800 Accounts Receivable $ 28,100 Prepaid Insurance $ 2,456 Total Current assets Property Plant and Equipment $ 65,900 Building $ 129,900 Less : Accumulated depreciation - Buildings $ -3,100 Equipment $ 58,800 Less : Accumulated depreciation - Equipment $ -3,700 Total Property Plant and Equipment Total Assets Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $ 12,100 Unearned Rent Revenue $ 1,200 Mortgage Payable $ 33,600 Interest Payable $ 10,500 Total Current Liabilities Long term Liabilities Mortgage Payable ($110,700 - $33,600) $ 77,100 Total Long term Liabilities Total Liabilities Shareholders' Equity Owners' Capital $ 154,184 Add: Net Income $ 25,172 Less : Owners' Drawings $ -21,700 Total Shareholders' Equity Total Liabilities and Shareholders' Equity $ 57,400 $ 77,100 $ 134,500 $ 157,656 $ 292,156 $ 91,300 $ 33,800 $ 125,100 Calculation of Net Income Service Revenue Rent Revenue Total Revenue Less : Expenses Salaries and wages Expense Advertising expense Utilities expense Insurance Expense Depreciation expense Interest expense Total Expenses Net Income $ 41,800 $ 20,600 $ 19,000 $ 1,228 $ 6,800 $ 10,500 $ 99,928 $ 25,172