Challenge Exercise 1
Expands on: E1-8
LO: 4, 5
The following items and amounts were taken from Lotte Inc.s 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 owners investment?