Table 13-11
the Following Accounts and Related Balances of ETH

question 46

Essay

Table 13-11
The following accounts and related balances of ETH Engineering Ltd. are as at December 31, 2017 prior to the closing journal entries.
$$\begin{array} { |l| r } \hline \text { Prademark, net } & \$ 17,000 \\\hline \text { Preferred Shares, } \$ 2.50,20,000 \text { authorized and issued } & 200,000 \\\hline \text { Cash } & 320,000 \\\hline \text { Accounts Receivable, net } &265,000 \\\hline \text { Accrued Liabilities } & 42,000\\\hline \text { Long-term Note Payable } & 500,000 \\\hline \text { Interest Expense } & 35,000 \\\hline \text { Inventory } &350,000\\\hline \text { Retained Earnings/(Deficit) } & (1,197,000) \\\hline \text { Accounts Payable } & 75,000\\\hline \text { Property, Plant, and Equipment, net } &2,800,000 \\\hline \text { Common Shares, 300,000 shares authorized; } 175,000 \text { shares } \\\text { Issued } &3,500,000 \\\hline \text { Prepaid Expenses } & 3,000 \\\hline \text { Organization Costs } & 15,000\\\hline\end{array}$$ Additional information:
$$\begin{array} { l l } \text { Total Assets, january } 1,2017 & \$ 3,200,000 \\\text { Net income for } 2017 & \$ 650,000\end{array}$$ No new shares were issued in 2017.
$$\text { 54) 1) Referring to Table 13-11, prepare journal entries for the following transactions }$$ Dec 31 Close the income summary account
Dec 31 The entry to record amortizing $ 3 , 0 0 0 of the crganization costs
Dec 31 The entry to record the declaration of a $\$ 60,000$ cash dividend. Assume that there is a positive $\quad$ b
-Prepare the equity section of ETH Engineering Ltd.'s balance sheet taking into consideration the above year end journal entries and Table 13-11.
$$\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\text { Journal }\\\begin{array} { l | l | l | l } \hline \text { Date } & \text { Description } & \text { Debit } & \text { Credit } \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}\end{array}$$

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Definitions:

Federal Communications

Refers to the United States Federal Communications Commission (FCC), a government agency responsible for regulating interstate and international communications by radio, television, wire, satellite, and cable.

Structuralist View

An economic perspective that emphasizes the role of structural factors, such as institutional, social, and technological aspects, in determining economic outcomes.

Allocative Inefficiency

A situation in which resources are not allocated in a way that maximizes total welfare or societal well-being.

Illegal Business Behaviors

Illegal business behaviors encompass actions by companies that violate laws or regulations, such as fraud, insider trading, and environmental violations.