Prepare an income statement and balance sheet for Nipissing Ltd.from the following list of accounts as at April 30, 2012.

\begin{array}{lrlr}\text { Accounts payable } & 108,000 & \text { Income tax expense } & 135,000 \\\text { Accounts receivable } & 305,000 & \text { Income taxes payable } & 34,000 \\\text { Accrued wages } & 15,500 & \text { Interest expense } & 65,000 \\\text { Amortization expense } & 105,000 & \text { Inventory } & 125,000 \\\text { Capital Stock } & 200,000 & \text { Mortgage payable (non- } &\\\text { Cash } & 15,000 & \text { current portion) } & 550,000 \\\text { Cost of sales } & 678,500 & \text { Patents } & 200,000 \\\text { Current portion of mortgage } & & \text { Prepaid expenses } & 6,000\\\text { payable }&25,000&\text { Prepaid expenses } \\& & \text { equipment } & 850,000 \\\text { Dividends } & 30,000 & \text { Sales for cash } & 250,000 \\\text { Dividends payable } & 7,500 & \text { Sales on credit } & 1,825,000 \\\text { General, administrative } & & \text { Retained earnings } & 303,500\\\text { and selling expenses }& 804,000 &\text { (beginning of the year balance) }\end{array}

Brantford Business Ltd

Multiple Choice