Respuesta :
Answer:
Total assets = Shareholders' Equity and Liabilities = $4,008,860
Explanation:
To prepare the balance sheet, the income statement is first prepared to determine the net income as follows:
Cullumber Corporation
Income Statement
For the Year ended December 31, 2020
Particulars $
Sales 8,104,270
Cost of Goods Sold (4,800,000)
Gross profit 3,304,270
Operating expenses
Selling Expenses (2,004,270)
Administrative Expenses (902,700)
Operating income 397,300
Other income (expenses)
Interest Expense (213,700)
Investment Revenue 65,700
Net income 249,300
The balance sheet can now be presented as follows:
Cullumber Corporation
Balance Sheet
As at December 31, 2020
Particulars $ $
Investments
Debt Investments (long-term) 303,010
Equity Investments (long-term) 281,010
Total investments 584,020
Intangible Assets
Franchises 160,000
Patents 195,000
Total intangible assets 355,000
Property, Plant and Equipment
Land 264,270
Buildings 1,044,010
Accumulated Depreciation-Buildings (152,000)
Equipment 604,270
Accumulated Depreciation-Equip. (60,000)
Net Property, Plant and Equipment 1,700,550
Current Assets
Cash 201,010
Debt Inv. (trading) (at cost, $145,000) 157,270
Accounts Receivable 439,270
Allowance for Doubtful Accounts (29,270)
Inventory 601,010
Total current assets 1,369,290
Total Assets 4,008,860
Shareholders' Equity
Common Stock ($5 par) 1,004,270
Treasury Stock (195,270)
Gain 82,700
Retained Earnings 82,010
Paid-in Capital in Excess of Par 84,010
Net income 249,300
Total Shareholders' Equity 1,307,020
Long-term Liabilities
Notes Payable (long-term) 904,010
Bonds Payable 1,004,010
Total Long-term Liabilities 1,908,020
Current Liabilities
Notes Payable (short-term) 94,270
Accounts Payable 459,270
Dividends Payable 140,010
Accrued Liabilities 100,270
Total current liabilities 793,820
Shareholders' Equity and Liabilities 4,008,860
