Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Exercise 2: Statement of Financial Position Given the following account informat

ID: 2812010 • Letter: E

Question

Exercise 2: Statement of Financial Position Given the following account information for Leong Corporation, sheet in report form for the company as of December 31, 2010. A normal balances. Equipment Interest Expense Interest Payable Retained Earnings Dividends Land Inventory Bonds Payable Notes Payable (due in 6 months) Common Stock Accumulated Depreciation - Eq. Prepaid Advertising Revenue Buildings Supplies Taxes Payable Utilities Expense Advertising Expense Salary Expense Salaries Payable Accumulated Depr. Bld. Cash Depreciation Expense, 40,000 2,400 600 2 50,400 137,320 102,000 78,000 14,400 80,000 10,000 5,000 331,400 80,400 1,860 3,000 1,320 1,560 53,040 900 15,000 50,000 Building & Equipment 8,000

Explanation / Answer

Leong corporation

Balance Sheet

December 31,2010

Assets

Cash $50,000.00

Inventory $1,02,000.00

Supplies $1,860.00

Prepaid Advertising $5,000.00

Total Current Assets $1,58,860.00

Land $1,37,320.00 $1,37,320.00

Building $80,400.00

Accumulated Depreciation -Building $15,000.00 $65,400.00

Equipment $40,000.00

Accumulated Depreciation -Equipment $10,000.00 $30,000.00 $2,32,720.00

Total Assets $3,91,580.00

Liabilities & Stockholder's Equity

Notes Payable $14,400.00

Taxes Payable $3,000.00

Salaries & Wages Payable $900.00

Interest Payable $600.00

Total Current Liabilities $18,900.00

Long Term Liabilities

Bonds Payable $78,000.00

Total Liabilities $96,900.00

Common Stock $80,000.00

Retained Earnings $2,14,680.00 $2,94,680.00

Total Stock holder's Equity

Total Liabilities and stockholder's equity $3,91,580.00

Revenue $3,31,400.00

Expenses

Salaries & Wages $53,040.00

Utilities $1,320.00

Advertising Expenses $1,560.00

Depreciation $8,000.00

Interest $2,400.00

Dividend $50,400.00

Retained Earnings $2,14,680.00