Craft Carpentry Limited reports the following statement of

financial position #8442

Craft Carpentry Limited reports the following statement of financial position

Craft Carpentry Limited reports the following statement of financial position accounts, in
alphabetical order:

Accounts payable...........................$ 15,600

Accounts receivable...........................13,100

Bank loan payable.............................32,000

Cash..............................................9,350

Common shares................................20,000

Equipment......................................30,500

Income tax payable.............................1,800

Intangible assets.................................5,000

Interest payable.................................$ 300

Inventory.........................................9,200

Prepaid insurance...............................1,000

Retained earnings.............................21,250

Salaries payable...................................700

Supplies..........................................2,800

Unearned revenue..............................1,800

Vehicles.......................................22,500

Instructions

(a) Classify each account as an asset (A), liability (L), or shareholders' equity (SE) item.

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 (b) Calculate total assets, total liabilities, and total shareholders' equity and prepare Craft
Carpentry's accounting equation.

(c) Craft Carpentry's retained earnings were $18,000 at the beginning of the year. The company
reported revenues of $296,750, expenses of $278,500, and dividends of $15,000 during the
year. Prepare a calculation that proves how retained earnings of $21,250 at the end of the year
were determined.

Craft Carpentry Limited reports the following statement of financial position

ANSWER
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