Question

Question 1 (12 points) Saved The bookkeeper for Kane Corporation, a private corporation, has provided you with the balances of the adjusted trial balance on June 30, 2019. The company reports under ASPE. Account Dr. Cr. Cash, Note 1 6,200 Building 245,000 Accounts receivable, Note 2 121,000 Accounts payable 285,000 Allowance for doubtful accounts 6,500 Loans to shareholders 66,200 Dividend payable December 31, 2019 17,500 Note receivable Note 3 175,000 Mortgage payable Note 4 140,000 Accumulated depreciation, building 73,500 Inventory, at cost Note 5 215,000 Trademarks 50,000 Common shares 328,900 Retained earnings 27,000 Totals 878,400 878,400 Other information: Note 1 Cash balance is comprised of: o Petty Cash $ 220 o Assiniboine Credit Union savings account 18,500 . Bank of Montreal chequing account overdraft (12,520) Note 2 Accounts receivable includes credit balances of $15,000 Note 3 Note receivable is due on May 31, 2020 Note 4 Principal on mortgage payable of $20,000 due by June 30, 2020

Answer 1

Answer

Kane Corporation
Balance Sheet
As on June 30, 2019
Assets		Amount
Current Assets
	Cash	$18,720.00
	Accounts receivable	$1,36,000.00
	Note receivable	$1,75,000.00
	Inventory	$2,15,000.00
	Loan to Shareholders	$66,200.00
	Short-term investments	$0.00
	Total current assets	$6,10,920.00
Fixed (Long-Term) Assets
	Long-term investments	$0.00
	Property, plant, and equipment	$2,45,000.00
	(Less accumulated depreciation)	-$73,500.00
	Intangible assets	$50,000.00
	Total fixed assets	$2,21,500.00
Other Assets
	Deferred income tax	$0.00
	Other	$0.00
	Total Other Assets	$0.00
Total Assets		$8,32,420.00

Notes:

1) Bank overdraft is a liability will be recorded in liabilities side.

2) Credit Balance of account receivable is advance received from customers will be recorded in liabilities side.