These items are taken from the financial statements of Crane Ltd. at December 31, 2021: Accounts...

These items are taken from the financial statements of Crane Ltd. at December 31, 2021:

Accounts payable		$22,050
Accounts receivable		20,780
Accumulated depreciation—buildings		51,600
Accumulated depreciation—equipment		23,470
Buildings		135,800
Cash		25,040
Common shares		144,000
Equipment		70,100
Income tax expense		6,200
Interest expense		4,500
Interest payable		2,700
Land		198,370
Long-term investments		27,970
Mortgage payable		105,000
Operating expenses		159,680
Prepaid insurance		1,500
Retained earnings, January 1		120,520
Service revenue		182,040
Supplies		1,440

(a) Calculate net income and the ending balance of retained earnings at December 31, 2021.

Net income	$
Retained Earnings	$

(b) Prepare a statement of financial position. Assume that the company will pay $29,500 of the mortgage payable in 2022. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, Buildings, and Equipment.)

Expert Solution

ekkarill92 answered 2 years ago

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