Question

Presented below is the trial balance of Vivaldi Corporation at December 31, 2012.

Accounts	Debit		Credit
Notes Payable (long-term)    I/S   B/S			1,902,140
Interest Expense             “”	212,580
Administrative Expenses      “”	901,580
Dividend          “”	98,140
Equity Investments (short-term AFS)	279,140
Accrued Liabilities			100,980
Inventory	599,140
Equipment	604,980
Bonds Payable			1,002,140
Debt Investments (long-term)	301,140
Franchises	160,000
Accounts Receivable	439,980
Accumulated Depreciation—Buildings Contra asset			352,000
Current portion of Bonds payable			344,980
Paid-in Capital in Excess of Par			2,463,120
Allowance for Doubtful Accounts			29,980
Land	260,000
Land held for speculation	12,000
Patents	195,000
Accounts Payable			459,980
Selling Expenses	2,004,980
Buildings	1,042,140
Goodwill	3,400,000
Impairment of goodwill	12000
Accumulated Depreciation—Equipment			60,000
Investment Revenue			64,580
Dividends Payable			98,140
Sales			$8,904,980
Common Stock ($5 par)			100,000
Retained Earnings, Beginning balance			80,140
Cost of Goods Sold	4,804,980
Treasury Stock	195,980
Debt Investments (trading) (cost, $145,000)	157,980
Cash	161,000
Gain on Sale of building			81,580
Accumulated other comprehensive income			48,000
Tax expense	250,000
Total	16,092,740		16,092,740

Calculate ending retained earnings and prepare a classified balance sheet at December 31, 2012, for Vivaldi Corporation. Ignore income taxes.

Notes：Please cover detailed process！！

Answer 1

Answer,

Company Name
Balance Sheet
December 31, 2022
Assets
Current assets:
Cash		161,000
Debt Investments (trading) (cost, $145,000)		157,980
Equity Investments (short-term AFS)		279,140
Accounts Receivable	439,980
Allowance for Doubtful Accounts	(29,980)	410,000
Inventory		599,140
Total Current Assets			1,607,260
Investments:
Debt Investments - longterm		301,140
Land held for sale		12,000
Total investments			313,140
Property, plant and equipment:
Land		260,000
Buildings	1,042,140
Accumulated depreciation-Buildings	(352,000)	690,140
Equipment	604,980
Accumulated depreciation-Equipment	(60,000)	544,980
Total Property, plant and equipment			1,495,120
Intangible assets:
Goodwill		3,400,000
Franchises		160,000
Patents		195,000
Total intangible assets			3,755,000
Total assets			7,170,520
Liabilities
Current liabilities:
Accounts payable		459,980
Accrued Liabilities		100,980
Dividends Payable		98,140
Current portion of Bonds payable		344,980
Total current liabilities			1,004,080
Long-term liabilities:
Bonds payable		1,002,140
Notes Payable		1,902,140
Total long term liabilities			2,904,280
Total liabilities			3,908,360
Stockholders' Equity
Common Stock		100,000
Paid-in Capital in Excess of Par		2,463,120
Retained earnings		847,020
Treasury Stock		(195,980)
Accumulated other comprehensive income		48,000
Total stockholders' equity			3,262,160
Total liabilities and stockholders' equity			7,170,520

Calculation

Income statement
Sales revenue		8,904,980
Less: cost of goods sold		4,804,980
Gross profit		4,100,000
Selling and admin expense
Selling expense	2,004,980
Admin expense	901,580	2,906,560
Operating income		1,193,440
Less: other income (expenses)
Investment income	64,580
Interest expense	(212,580)
Gain on Sale of building	81,580
Impairment of goodwill	(12,000)	(78,420)
Income before tax		1,115,020
Les: income tax		250,000
Net income		865,020
Retained earnings
Retained earnings, Jan 1		80,140
Add: Net income		865,020
Less: Dividends declared		(98,140)
Retained earnings, Dec 31		847,020