Question

Problem 123

Given the following account information for Leong Corporation.

Equipment		59,450
Interest Expense		2,380
Interest Payable		570
Retained Earnings		?
Dividends		66,150
Land		137,680
Accounts Receivable		101,010
Bonds Payable		79,820
Notes Payable (due in 6 months)		30,520
Common Stock		67,780
Accumulated Depreciation - Equipment.		11,940
Prepaid Advertising		4,820
Service Revenue		345,340
Buildings		78,090
Supplies		1,860
Income Taxes Payable		2,910
Utilities Expense		1,370
Advertising Expense		1,630
Salaries and Wages Expense		50,470
Salaries and Wages Payable		940
Accumulated Depr. - Building.		15,900
Cash		43,220
Depreciation Expense		7,590

Prepare a balance sheet in report form for the company as of December 31, 2017. All accounts have normal balances. (List Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Leong Corporation Balance Sheet Asset Liabilities & Stockholders' Equity

Answer 1

Leong Corporation Balance sheet in report form for the company as of December 31, 2017: Assets Amount S Amount S Current Assets :- Cash 43,220 Accounts Receivable 101,010 Supplies 1,860 Prepaid Advertising 4,820 Total Current Assets 150,910 Land 137,680 59,450 Equipment Less: Accumulated Depreciation Equipment. (11,940) 47,510 Buildings 78,090 Less: Accumulated Depr. - Building (15,900) 62,190 Total Assets 398,290 Liabilities & Shareholders Equity Amount S Amount S Current Liabilities: Salaries and Wages Payable 940 2,910 Income Taxes Payable Interest Payable 570 Notes Payable (due in 6 months) 30,520 Total Current Liabilities 34,940 Long term liabilities: Bonds Payable 79,820 Total Long term liabilities 79,820 Shareholders equit Common Stock 67,780 Retained earnings 215,750 Total Shareholders equity 283,530 Total Liabilities and Shareholders equity 398,290

Leong Corporation Computation of Net Income:- Particulars Amount S Amount S Service Revenue 345,340 Less: Expenses Salaries and Wages Expense 50,470 Utilities Expense 1,370 Advertising Expense 1,630 Interest Expense 2,380 Depreciation Expense 7,590 Total Expenses 63,440 Net Income 281,900 Leong Corporation Computation of Closing balance of Retained eanrings Amount S Assets Opening balance of Retained earnings Add: Net Income 281,900 Income available for Distribution 281,900 Less: -Dividends (66,150) Closing balance of Retained earnings 215,750