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

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.
$$\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\text { Journal }\\\begin{array} { l | l | l | l } \hline \text { Date } & \text { Description } & \text { Debit } & \text { Credit } \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}\end{array}$$