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(b) Prepare the liabilities and equity sections of the statement of financial position.
(c) If you completed P2-2B, compare the total assets in P2-2B with the total liabilities and shareholders' equity in P2-3B. Do these two amou
These items are taken from financial statements of Beaulieu Limited for the year ended December 31, 2018:
Cash
$ 11,170
Buildings
105,000
Accumulated depreciation\textendash equipment
19,200
Accounts payable
9,550
Salaries payable
6,170
Common shares
45,000
Accumulated depreciation\textendash buildings
12,000
Accounts receivable
7,500
Prepaid insurance
250
Equipment
32,000
Income tax expense
5,000
Long\textendash term investments
20,000
Retained earnings, January 1
34,000
Dividends declared
3,500
Service revenue
193,100
Depreciation expense
5,400
Insurance expense
2,400
Salaries expense
145,600
Utilities expense
3,700
Interest expense
8,000
Interest revenue
500
Land
145,800
Mortgage payable
175,800
Additional information:
1. Beaulieu started the year with $25,000 of common shares and issued $20,000 more during the year.
2. $35,100 of the mortgage payable is due to be repaid within the next year.
Instructions
(a) Prepare an income statement, statement of changes in equity, and statement of financial position for the year.
(b) Explain how each financial statement is related to the others.
P2-58 The financial statements of Fast Corporation are presented here.
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