Reference no: EM132736887
Problem - These ledger balances are all normal and were taken from the financial statements of Emax Corp. as at December 31, 2018 (unless otherwise indicated), their financial year end.
|
Interest Revenue
|
$4,100
|
Depreciation expense
|
$7,000
|
|
Utilities Expense
|
1,900
|
Accounts Receivable
|
5,000
|
|
Unearned Revenue
|
2,050
|
Retained Earnings
|
160,000
|
|
Accounts Payable
|
24,000
|
Salaries Expense
|
25,000
|
|
Land
|
125,000
|
Accumulated depreciation - equipment
|
12,000
|
|
Cash
|
43,000
|
Income tax Expense
|
7,500
|
|
Common shares, Jan 1, 2018
|
20,000
|
Supplies
|
200
|
|
Goodwill
|
11,000
|
Mortgage Payable
|
36,650
|
|
Service Revenue
|
93,000
|
Long-term Investments
|
22,500
|
|
Patents
|
12,500
|
Maintenance Expense
|
3,000
|
Additional information:
i) $5,000 of the Mortgage Payable is due to be repaid within the next year.
ii) $13,000 of common shares were issued during the year, prior to December 31, 2018.
iii) Original cost of Equipment was $48,500.
iv) $3,000 in cash dividends were paid to common shareholders at the end of the year.
v) The Retained Earnings balance is a final calculation for the year.
Required -
a. Prepare and submit an Income Statement for the financial year in good form.
b. Prepare and submit a Statement of Financial Position (balance sheet) as at the end of the year in good form.