Scenario:The 2020 comparative balance sheet and 2020 income statement of JNC Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. "The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners".The owners have asked you to assist with the needed clarification having put forward the following financial information: Balance Sheet 2020 2019 Increase/Decrease Assets: Cash & Cash Equivalent ? ? ? Accounts Receivable 87550 ? 1550 Inventories 93900 98540 ? Fixed Assets, Net 160400 ? 49900 Total Assets 373,350 316,890 56,460 Liabilities: Accounts Payable ? ? 950 Accrued Liabilities 22850 24940 ? Longterm Notes Payable 82000 140500 (58500) Stockholders' Equity: Common Stock ? 61500 123500 Retained Earnings 54800 ? (9200) Total Liabilites & Stockholders' Equity 373,350 316,890 56460 Income Statement Revenues & Gains: Sales Revenue 369500 Interest Revenue 11800 Total Revenues & Gains 381300 Expenses: Cost of Goods Sold 205500 Depreciation Expense 15500 Other Operating Expense 126000 Interest Expense 24300 Total Expenses 371300 Income before Income Taxes 10000 Income Tax Expense 16300 Net Loss (6300) Notes Acquisition of fixed asset during 2020 65,400 Sale proceed from sale of plant asset - Receipt for issuance of notes payable - Payment for note payable 58,500 Dividend paid 2,900 Book value of equipment sold - Requirement: Find the missing figures in the balance sheet (show working).

Scenario: The 2020 comparative balance sheet and 2020 income statement of JNC Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination, it was...

Scenario:

The 2020 comparative balance sheet and 2020 income statement of JNC Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. "The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners".

The owners have asked you to assist with the needed clarification having put forward the following financial information:

Balance Sheet

	2020	2019	Increase/Decrease
Assets:
Cash & Cash Equivalent	?	?	?
Accounts Receivable	87550	?	1550
Inventories	93900	98540	?
Fixed Assets, Net	160400	?	49900
Total Assets	373,350	316,890	56,460
Liabilities:
Accounts Payable	?	?	950
Accrued Liabilities	22850	24940	?
Longterm Notes Payable	82000	140500	(58500)
Stockholders' Equity:
Common Stock	?	61500	123500
Retained Earnings	54800	?	(9200)
Total Liabilites & Stockholders' Equity	373,350	316,890	56460

Income Statement

Revenues & Gains:
Sales Revenue	369500
Interest Revenue	11800
Total Revenues & Gains		381300
Expenses:
Cost of Goods Sold	205500
Depreciation Expense	15500
Other Operating Expense	126000
Interest Expense	24300
Total Expenses		371300
Income before Income Taxes		10000
Income Tax Expense		16300
Net Loss		(6300)

Notes
Acquisition of fixed asset during 2020	65,400
Sale proceed from sale of plant asset	-
Receipt for issuance of notes payable	-
Payment for note payable	58,500
Dividend paid	2,900
Book value of equipment sold	-

Requirement:

Find the missing figures in the balance sheet (show working).

Jun 09, 2022

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Scenario: The 2020 comparative balance sheet and 2020 income statement of JNC Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination, it was...

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