Question

Western Vancouver Company has just completed their trial balance for the year of operations ending March 31, 2020 as shown below:

$

Office supplies 140

Interest earned 3,370

Office supplies expense 10,220

Patent 600

Commission expense 1,320

Prepaid advertising expense 480

Rent income 10,840

Furniture 9,200

Interest expense 4,500

Accrued interest expense 374

Cash 3,400

Copyright 6,000

Notes receivable, 2025 28,600

Unearned rent income 800

Investment, due 3 months 2,400

Accrued salary expense 526

Translation services revenue 36,000

Land 22,000

Depreciation expense, building 5,000

Accrued commission income 10,200

Accumulated depreciation, furniture 700

Advertising expense 5,520

John Wright, capital 149,200

Depreciation expense, furniture 390

Long-term notes payable, (2030) 75,000

Utilities expense 7,344

John Wright, withdrawals 1,100

Accounts payable 1,684

Building 125,000

Salaries expense 312,520

Accumulated depreciation, building 5,000

Rent paid 24,600

Additional information: 1. Additional investment made by the owner during the year, $22,000.

2. $8,000 of the Long Term Notes Payable will be paid in 5 months after March 31, 2020.

3. $3,600 of the Notes Receivable will be received by March 31, 2021.

Required: Prepare, in good form, a Balance Sheet for the year 2020.

Answer 1

Western Vancouver Company
Balance Sheet
At March 31,2020
Current assets:
Cash		$3,400
Investment, due 3 months		$2,400
Notes receivable		$3,600
Office supplies		$140
Prepaid advertising expense		$480
Accrued commission income		$10,200
Total current assets			$20,220
Investments:
Notes receivable [$28,600-$3,600 current portion]			$25,000
Property, plant and equipment:
Land		$22,000
Furniture	$9,200
Accumulated depreciation, furniture	($700)	$8,500
Building	$125,000
Accumulated depreciation, building	($5,000)	$120,000
Tootal property, plant and equipment			$150,500
Intangible assets:
Patent		$600
Copyright		$6,000
Total intangible assets			$6,600
Total assets			$202,320
Liabilities and Stockholders' equity
Current liabilities:
Accounts payable		$1,684
Unearned rent income		$800
Accrued interest expense		$374
Accrued salary expense		$26
Notes payable-Current portion of long term		$8,000
Total current liabilities			$10,884
Long-term notes payable [75000-8000]			$67,000
Total liabilities			$77,884
Owner's equity:
John Wright, capital [Difference amount]			$124,436
Total liabilities and stockholders' equity			$202,320