the java house is developing its annual financial statements for 2014 the following 4375893

The Java House is developing its annual financial statements for 2014. The following amounts were correct at December 31, 2014: cash, $ 58,800; investment in shares of PAX Corporation (long term), $ 36,400; store equipment, $ 67,200; trade receivables, $ 71,820; carpet inventory, $ 154,000; prepaid rent, $ 1,120; used store equipment held for disposal, $ 9,800; accumulated depreciation, store equipment, $ 13,440; income taxes payable, $ 9,800; long- term note payable, $ 42,000; trade payables, $ 58,800; retained earnings, $ 165,100; and common shares (100,000 shares outstanding, originally sold and issued at $ 1.10 per share). Required: 1. Based on these data, prepare the company’s statement of financial position at December 31, 2014. Use the following major captions (list the individual items under these captions): a. Assets: current assets; long- term investments; property, plant, and equipment; and other assets. b. Liabilities: current liabilities and long- term liabilities. c. Shareholders’ equity: share capital and retained earnings. 2. What is the carrying amount of the store equipment? Explain what this value means. View Solution:
The Java House is developing its annual financial statements for

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