Table 13-12
the Following Accounts and Related Balances of FYI

question 28

Essay

Table 13-12
The following accounts and related balances of FYI Advertising Ltd. are as at December 31, 2017 prior to the closing journal entries.
$$\begin{array} { | l | r | } \hline \text { Accrued Liabilities }&\$50,400 \\\hline \text { Preferred Shares, } \$ 2.50 , \text { cumulative, } 24,000 \text { authorized and } \\\text { Issued } & 240,000 \\\hline \text { Prepaid Expenses } & 3,600 \\\hline \text { Accounts Payable } & 90,000 \\\hline \text { Interest Expense } & 29,000 \\\hline \text { Trademark, net } & 20,400 \\\hline \text { Long-term Note Payable } &600,000 \\\hline \text { Property, Plant, and Equipment, net } & 3,360,000 \\\hline \text { Retained Earnings } &623,600 \\\hline \text { Accounts Receivable, net } &318,000 \\\hline \text { Inventory } & 420,000\\\hline \text {Common Shares, 300,000 shares authorized; } 200,000 \text { shares } \\\text { Issued }&2,500,000\\\hline \text { Cash } & 384,000 \\\hline \text { Organization Costs } & 18,000 \\\hline\end{array}$$ Additional information:
$$\begin{array} { l l } \text { Total Assets, january } 1,2017 & \$ 4,100,000 \\\text { Net income for } 2017 & \$ 420,000\end{array}$$ No new shares were issued in 2017.
-Referring to Table 13-12,prepare a classified balance sheet as at December 31,2017.

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Definitions:

Binding Price Ceiling

A government-imposed limit on the price of a good or service that is set below the equilibrium market price, leading to shortages.

Binding Price Ceiling

A price ceiling set below the equilibrium price, leading to a shortage of goods since demand exceeds supply at the set price.

Market Shortage

A condition in which the quantity demanded of a good exceeds the quantity supplied at the market price.

Binding Price Ceilings

Regulatory limits on the price of goods and services that are set below the market equilibrium price, causing shortages.