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ACT 410 Project

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Question;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 PatentMarketable securitiesSpare parts Inventory Bonds Payable Notes Payable (due in 6 months)Share capital–ordinary Accumulated Depreciation - Eq. Prepaid Advertising Sales Revenue Maintenance revenuesRent revenuesBeginning inventoryBuildings Supplies Purchases returnsSales returnsTaxes Payable Accumulated dep. of equipment under capital leaseTransportation - out expenseUtilities Expense Advertising Expense Salary Expense (70% sales and 30% offices)Salaries Payable Accumulated Dep. - Buildings. CashDepreciation Expense: Building& EquipmentLosses due to an earthquake damagePurchasesLands kept for sale in the futureGoodwillRestricted cashLoss of (X) division from operations (pre-tax)Gain on disposition of (X) division’s assets (pre-tax) Dividends revenues Franchise Spare used during the periodPurchase discountSales discountSales allowanceSales commission Transportation - in expense Patent amortization expenseGoodwill impairment expense Available for sale securitiesInvestment in bondsShare capital (300,000 ordinary shares, par 1KD) Share capital(5,000 preference shares, 8%, 10KD par)Share premium – ordinary Share premium – preferenceTreasury shares (at cost) Accumulated other comprehensive income componentsSupplies expense Account payable of capital leaseEquipment under capital leaseAccount receivable (due in two years) Research costDevelopment cost (verifiable) 40,0002,400600?50,400137,320120,00042,00032,00078,00014,40060,00010,0005,000831,400125,60034,00082,00080,4008,86012,00022,0003,0004,0004,8505,3203,560153,0403,90015,00030,00014,00055,000458,00020,00085,00015,00035,00080,00010,00065,00012,00014,00028,00010,00018,48011,5204,0005,00042,00050,000300,00050,00030,00010,00020,00018,5002,42022,80031,00012,00044,50072,000Additional 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 2012Step (2): Prepare income statement at December 2012 for the companyStep (3): Prepare a classified statement of financial position at December 2012.

 

Paper#50957 | Written in 18-Jul-2015

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