In: Accounting
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.
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 [28600-3600] | $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 [Diff.] | $124,436 | ||
Total liabilities and stockholders' equity | $202,320 |