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.
