Challenge
Exercise 1
Expands
on: E1-8
LO: 4, 5
The following items and amounts were taken
from Lotte Inc.âs 2014 financial statements.
Cash $ 84,700 Accounts
receivable $ 88,419
Retained
earnings (1/1/14) 123,192 Sales
revenue 584,951
Cost
of goods sold 438,192 Notes
payable 6,499
Salaries
and wages expense 115,131 Accounts
payable 49,384
Prepaid
insurance 7,818 Service
revenue 4,806
Inventory 64,618 Interest
expense 1,882
Instructions
(a) Prepare a balance sheet as of December
31, 2014.
(b) What percentage of assets were acquired
by ownersâ investment?
