In: Accounting
The adjusted balances at December 31, 2020, for Derlak
Enterprises are shown in alphabetical order below:
2020 | 2019 | |||||
Accounts payable | $ | 63,800 | $ | 11,000 | ||
Accumulated amortization, franchise | 20,600 | 12,600 | ||||
Accumulated amortization, patent | 4,000 | 2,800 | ||||
Accumulated depreciation, equipment | 79,800 | 66,500 | ||||
Accumulated depreciation, tools | 49,000 | 49,400 | ||||
Accumulated depreciation, vehicles | 110,200 | 108,800 | ||||
Cash | 16,000 | 30,200 | ||||
Equipment | 198,000 | 100,000 | ||||
Franchise | 55,600 | 55,600 | ||||
Lee Derlak, capital* | 210,320 | 45,620 | ||||
Lee Derlak, withdrawals | 46,000 | 38,400 | ||||
Notes payable, due in 2023 | 163,000 | 148,600 | ||||
Office supplies | 3,800 | 3,720 | ||||
Operating expenses | 782,200 | 572,600 | ||||
Patent | 30,000 | 30,000 | ||||
Prepaid rent | 35,000 | 48,000 | ||||
Salaries payable | 36,300 | 23,700 | ||||
Service revenue | 844,500 | 775,700 | ||||
Tools | 150,920 | 102,200 | ||||
Vehicles | 264,000 | 264,000 | ||||
*The owner, Lee Derlak, made no additional investments during
the year.
Required:
Prepare a comparative classified balance sheet at December 31,
2020. (Record the accounts in the given order. Enter all
amounts as positive values.)
Analysis Component:
Are Derlak's assets financed mainly by debt or equity in 2019? in
2020? Is the change in how assets were financed from 2019 to 2020
favourable or unfavourable?