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1: Prepare and evaluate financial statements from accounts (22 Marks) A list of accounts for Geewhiz Productions Co. Ltd at November 30, 2019, is shown
1: Prepare and evaluate financial statements from accounts (22 Marks) A list of accounts for Geewhiz Productions Co. Ltd at November 30, 2019, is shown below, in no particular order or preference. Salaries Expense $ 78,000 Dividends declared $ 14,000 Income tax payable 3,200 Land 74,000 Accumulated amortisation Cash in Bank 108,000 27,000 Employees Benefits expenses 13,200 Income tax expense 8,100 Tax deductions payable 6,100 Credit Sales Revenue 402,200 Accounts Receivable 18,600 Inventory on Hand 78,000 Cash Sales Revenue 33,400 Prepaid Insurance Asset 3,200 Beginning Retained Dividends Payable Amortisation expense Cost of goods sold expense Insurance expense Share Capital 184,100 Interest Income 7,500 Earnings 96,600 37,200 Accounts payable 53,000 2,100 13,800 Building 346,000 300,000 Trucks and Equipment 253,400 Office Expense 46,200 Salaries payable 5,200 Mortgage Payable 169,800 Miscellaneous Expenses 9,700 Bank loan owing 37,900 Interest expense 20,500 Required: i. ii. Using the list, decide which ones are income statement accounts. Estimate net income based on your answer to part 1. (3 marks) (2 marks) (2 marks) iii. Estimate ending retained earnings based on your answer to part 2. iv. Prepare the following financial statements, demonstrating that your answers to parts 2 and 3 are correct: V. a. Income statement for the year ended November 30, 2019. b. Statement of retained earnings for the year ended on that date. Balance sheet at November 30, 2019. c. (3 marks) (2 marks) (5 marks) Comment briefly on what the financial statements show about the company's performance for the year 2019 and financial position at November 30, 2019. (4 marks)
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