(solved)The following accounts and account balances are taken from the records of Acme Enterprises Ltd. at December 31, 2018.. . . . .
The following accounts and account balances are taken from the records of Acme Enterprises Ltd. at December 31, 2018.Account20182017Accounts payable$ 8,000 $ 5,000Accounts receivable6,0004,000Notes receivable4,0003,000Bank loan6,0006,000Building25,00022,000Cash2,0001,000Dividends1,000-0-Equipment18,00014,000Income taxes payable3,0002,500Land5,0005,000Merchandize inventory19,00024,500Mortgage payable5,0007,000Prepaid insurance1,0001,000Share capital48,00048,000Retained earnings, start of year2,0001,000Net income??Other information:a. One-half of the notes receivable at December 31, 2018 will be received in cash during 2019. All of the notes receivable at December 31, 2017 were received in cash during 2018.b. $1,000 of the bank loan and $2,000 of the mortgage payable must be repaid by December 31, 2019.Required:1. Calculate net income for 2017 and 2018.2. Prepare classified statement of financial position. Assume all accounts have normal balances. Disclose all amounts separately on the statement of financial position.3. Does Acme Enterprises Ltd. have sufficient resources to meet its current obligations in 2019?4. Refer to BDCC’s note 4 shown in this chapter. Assume now that Acmes’ property, plant, and equipment are combined into one amount on the statement of financial position. Prepare a suitable note to the financial statements. Assume there are no additions to PPE in 2017, and that there is no depreciation calculated for either year.
Answer to The following accounts and account balances are taken from the records of Acme Enterprises Ltd. at December 31, 2018. . . .