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1.Given the following account information for XYZ Corporation, prepare a balance

ID: 2418535 • Letter: 1

Question

1.Given the following account information for XYZ Corporation, prepare a balance sheet in report form for the company as of December 31, 2014. All accounts have normal balances.

Equipment                                                            60,000

Interest Expense                                                       2,400

Interest Payable                                                          600

Retained Earnings                                                  ______

Dividends                                                             50,400

Land                                                                  137,320

Accounts Receivable                                             102,000

Bonds Payable                                                       78,000

Notes Payable (due in 6 months)                               29,400

Common Stock                                                     70,000

Accumulated Depreciation - Equip.                            10,000

Prepaid Advertising                                                  5,000

Service Revenue                                                   341,400

Buildings                                                             80,400

Supplies                                                                 1,860

Income Taxes Payable                                              3,000

Utilities Expense                                                     1,320

Advertising Expense                                                 1,560

Salaries and Wages Expense                                     53,040

Salaries and Wages Payable                                          900

Accumulated Depreciation - Building                         15,000

Cash                                                                    45,000

Depreciation Expense                                                8,000

Explanation / Answer

Balance Sheet as on 31st December 2014 Particulars Amount Amount in $ Current Assets Cash $45,000 Accounts Receivable 102000 Prepaid Advertising 5000 Supplies 1860 Total Current assets $153,860 Fixed Assets Land 137320 Building 80400 Accumulated Depreciation-Building -15000 65400 Equipment 60000 Accumulated Depreciation -10000 50000 Total fixed assets 252720 Total assets $406,580 Liabilities Current Liabilities Salaries & Wages payable 900 Interest payble 600 Notes payable (in 6 months) 29400 Income Tax Payable 3000 Total current Liabilities 33900 Long term liability Bonds payable 78000 Stock holder equity Common Stock 70000 Retained earnings Net Income 224680 294680 Liabilities &Stock holder Equity 406580 Note Income Statement Service Revenue 341400 Utilities expenses 1320 Advertising expenses 1560 Salaries & Wages expenses 53040 Depreciation expense 8000 Interest expense 2400 Net Income 275080 Dividends 50400 Retained earnings 224680