Question

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These items are taken from the financial statements of Crane Company at December 31, 2022. 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 $86,756 10,332 2,624 9,709 67,568 50,184 640 4,346 2,132 49,200 32.801 37,392 7.790 76,752 15,350 2.952 12.054

Answer 1

Crane Company Balance Sheet 31-Dec-22 Assets Current Assets Cash Accounts Receivables Prepaid Insurance Total Current assets $ $ $ 9,709 10,332 2,624 $ 22,665 50,184 Less Property, Plant & equipment Land Building Accumulated Depreciation - Building Equipment Accumulated Depreciation - Equipment Total assets 49,364 $ $ $ $ 86,756 (37,392) $ 67,568 (15,350 $ Less 52,218$ $ 151,766 174,431 Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Notes Payable Interest payable Total current Liabilities $ $ $ 7,790 11,152 2,952 $ 21,894 Long Term Liabilities Notes payable Total Liabilities 65,600 $ $ 87,494 Shareholders Equity Common stock Retained Earning Total Shareholders Equity $ $ 49,200 37,737 Add $ 86,937 Total Liabilities & Shareholder's Equity $ 174,431 Notes payable of $ 11152 will be paid in 2023 that is within one year of preparing this balance sheet, so this amount is current liability for the business and remaining notes payables are long term liabilities = 76752 - 11152 = 65600. Retained earning = Beginning bal of retained earning + Net income - Dividend = 32801 +4936-0 = 37737 Net income = Service revenue - Insurance expense - Depreciation expense - Interest expense = 12054 - 640 - 4346 - 2132 = 4936 There was no dividend declared in year 2022 so the dividend is 0.