E5-12 (Preparation of a Balance Sheet) Presented below is the trial balance of V
ID: 2503667 • Letter: E
Question
E5-12 (Preparation of a Balance Sheet) Presented below is the trial balance of Vivaldi Corporation at December 31, 2012
Debits
Credits
Cash
$ 197,000
Sales
$ 7,900,000
Debt Investments (trading) (cost, $145,000)
153,000
Cost of Goods Sold
4,800,000
Debt Investments (long-term)
299,000
Equity Investments (long-term)
277,000
Notes Payable (short-term)
90,000
Accounts Payable
455,000
Selling Expenses
2,000,000
Investment Revenue
63,000
Land
260,000
Buildings
1,040,000
Dividends Payable
136,000
Accrued Liabilities
96,000
Accounts Receivable
435,000
Accumulated Depreciation
Debits
Credits
Cash
$ 197,000
Sales
$ 7,900,000
Debt Investments (trading) (cost, $145,000)
153,000
Cost of Goods Sold
4,800,000
Debt Investments (long-term)
299,000
Equity Investments (long-term)
277,000
Notes Payable (short-term)
90,000
Accounts Payable
455,000
Selling Expenses
2,000,000
Investment Revenue
63,000
Land
260,000
Buildings
1,040,000
Dividends Payable
136,000
Accrued Liabilities
96,000
Accounts Receivable
435,000
Accumulated Depreciation
Explanation / Answer
Income statement:
This statement is also called as statement of revenue and expense. It is one of the three financial statements, remaining are balance sheet and cash flow statement. It measures company