ACT 410 Project Given the following account information for Leong Corporation at Dece

ACT 410

Project

Given the following account information for Leong Corporation at December 31, 2012. All accounts have normal balances.

Equipment

Interest Expense

Interest Payable

Retained Earnings,1/1/2012

Dividends

Land

Patent

Marketable securities

Spare parts Inventory

Bonds Payable

Notes Payable (due in 6 months)

Share capital–ordinary

Accumulated Depreciation – Eq.

Prepaid Advertising

Sales Revenue

Maintenance revenues

Rent revenues

Beginning inventory

Buildings

Supplies

Purchases returns

Sales returns

Taxes Payable

Accumulated dep. of equipment under capital lease

Transportation – out expense

Utilities Expense

Advertising Expense

Salary Expense (70% sales and 30% offices)

Salaries Payable

Accumulated Dep. – Buildings.

Cash

Depreciation Expense: Building& Equipment

Losses due to an earthquake damage

Purchases

Lands kept for sale in the future

Goodwill

Restricted cash

Loss of (X) division from operations (pre-tax)

Gain on disposition of (X) division’s assets (pre-tax) Dividends revenues

Franchise

Spare used during the period

Purchase discount

Sales discount

Sales allowance

Sales commission

Transportation – in expense

Patent amortization expense

Goodwill impairment expense

Available for sale securities

Investment in bonds

Share capital (300,000 ordinary shares, par 1KD) Share capital(5,000 preference shares , 8%, 10KD par)

Share premium – ordinary

Share premium – preference

Treasury shares (at cost)

Accumulated other comprehensive income components

Supplies expense

Account payable of capital lease

Equipment under capital lease

Account receivable (due in two years)

Research cost

Development cost (verifiable)

40,000

2,400

600

?

50,400

137,320

120,000

42,000

32,000

78,000

14,400

60,000

10,000

5,000

831,400

125,600

34,000

82,000

80,400

8,860

12,000

22,000

3,000

4,000

4,850

5,320

3,560

153,040

3,900

15,000

30,000

14,000

55,000

458,000

20,000

85,000

15,000

35,000

80,000

10,000

65,000

12,000

14,000

28,000

10,000

18,480

11,520

4,000

5,000

42,000

50,000

300,000

50,000

30,000

10,000

20,000

18,500

2,420

22,800

31,000

12,000

44,500

72,000

Additional information:

– Ending inventory was evaluated at 102,000 KD at cost using FIFO method and at 97,500 KD at NRV.

– All items are subject to 25% income tax.

Required:

Step (1) : Prepare Trial Balance for year 2012

Step (2): Prepare income statement at December 2012 for the company

Step (3): Prepare a classified statement of financial position at December 2012.

ATTACHMENT PREVIEW

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ACT 410
Project
Given the following account information for Leong Corporation at December 31,
2012. All accounts have normal balances.
Equipment
Interest Expense
Interest Payable
Retained Earnings,1/1/2012
Dividends
Land
Patent
Marketable securities
Spare parts Inventory
Bonds Payable
Notes Payable (due in 6 months)
Share capital–ordinary
Accumulated Depreciation – Eq.
Prepaid Advertising
Sales Revenue
Maintenance revenues
Rent revenues
Beginning inventory
Buildings
Supplies
Purchases returns
Sales returns
Taxes Payable
Accumulated dep. of equipment under capital
lease
Transportation – out expense
Utilities Expense
Advertising Expense
Salary Expense (70% sales and 30% offices)
Salaries Payable
Accumulated Dep. – Buildings.
40,000
2,400
600
?
50,400
137,320
120,000
42,000
32,000
78,000
14,400
60,000
10,000
5,000
831,400
125,600
34,000
82,000
80,400
8,860
12,000
22,000
3,000
4,000
4,850
5,320
3,560
153,040
3,900
15,000
30,000

Unlock Solution Unlocking…

Cash
Depreciation Expense: Building& Equipment
Losses
due to an earthquake damage
Purchases
Lands kept for sale in the future
Goodwill
Restricted cash
Loss of (X) division from operations (pre-tax)
Gain on disposition
of (X) division’s assets (pre-tax)
Dividends revenues
Franchise
Spare used during the period
Purchase discount
Sales discount
Sales allowance
Sales commission
Transportation – in expense
Patent amortization expense
Goodwill impairment expense
Available for sale securities
Investment in bonds
Share capital (300,000 ordinary shares, par 1KD)
Share capital(5,000 preference shares , 8%, 10KD par)
Share premium – ordinary
Share premium – preference
Treasury shares (at cost)
Accumulated other comprehensive income components
Supplies expense
Account payable
of capital lease
Equipment under capital lease
Account receivable
(due in two years)
Research cost
Development cost (verifiable)
14,000
55,000
458,000
20,000
85,000
15,000
35,000
80,000
10,000
65,000
12,000
14,000
28,000
10,000
18,480
11,520
4,000
5,000
42,000
50,000
300,000
50,000
30,000
10,000
20,000
18,500
2,420
22,800
31,000
12,000
44,500
72,000
Additional information:

Ending inventory was evaluated at 102,000 KD at cost using FIFO
method and at 97,500 KD at NRV.

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