Question

These items are taken from the financial statements of Coronado Industries at December 31, 2017. Buildings $105,800 Accounts receivable 12,600 Prepaid insurance 3,200 Cash 11,840 Equipment 82,400 Land 61,200 Insurance expense 780 Depreciation expense 5,300 Interest expense Common stock 2,600 60,000 40,000 Retained earnings (January 1, 2017) Accumulated depreciation--buildings 45,600 Accounts payable 9,500 Notes payable Accumulated depreciation-equipment 93,600 18,720 3,600 14,700 Interest payable Service revenue

Answer 1

$11,840 $12,600 $3,200 $27,640 Answer Assets Current Assets Cash Accounts Receivable Prepaid Insurance Total Current Assets Property Plant and Equipment Land Buildings Less- Accumulated Depreciation-Buildings Equipment Less- Accumulated Depreciation Equipment Total Assets $61,200 $105,800 ($45,600) $60,200 $82,400 ($18,720) $63,680 $185,080 $212,720 $9,500 $93,600 $3,600 Liabilities and Shareholder's Equity Current Liabilities Accounts Payable Notes Payable Interest Payable Total Liabilities Shareholder's Equity Common Stock Retained Earnings (Note 1) Total Shareholder's Equity Total Liabilities and Shareholder's Equity $106,700 $60,000 $46,020 $106,020 $212,720

Notes 1 Retained Earnings as on 31st December 2017 $40,000 Retained Earnings as on 1st January 2017 Add-Current Year Surplus Service Revenue Less-Depreciation Expense - Insurance Expense - Interest Expense $14,700 ($5,300) ($780) ($2,600) $6,020 $46,020 Retained Earnings as on 31st December 2017