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Posted on Jul 16, 2024

2020 Transactions 1. During 2020, $121,000 in sales were made on account. Collections from customers were $102,000 for the year. 2. During 2020, $84,000 in

2020 Transactions

1. During 2020, $121,000 in sales were made on account. Collections from customers were $102,000 for the year.

2. During 2020, $84,000 in inventory purchases were made on account. Payments to vendors were $71,000 for the year.

3. During 2020, $20,000 in salary cost was incurred from employees working. Salary paid was $18,000 for the year.

4. On January 2, 2020 15 months of rent was paid in advance for $15,000. 12 months were used during 2020.

5. On June 30, 2020, 1,000 new shares of common stock were issued in exchange for $12,000 cash.

6. On September 9, 2020, land to open a new store is purchased for $14,000 cash.

7. On December 31, 2020, the loan is repaid with interest.

8. Equipment and building were used during 2020 & depreciation recorded (building used SL, equipment DDB [Double Declining Balance, i.e. 2 times the SL rate).

9. Inventory is counted and $17,000 remains unsold at December 31, 2020.

10. The income tax rate is 40%.

2021 Transactions

1. During 2021, a new gift card program was started and customers purchased $32,000 in gift cards (i.e. deferred revenue).

2. During 2021, $147,000 in sales were made on account. Collections of AR from customers were $143,000 for the year.

3. During 2021, $113,000 in inventory purchases were made on account. Payments to vendors were $117,000 for the year.

4. During 2021, $31,000 in salary cost was incurred from employees working. Salary paid was $32,000 for the year.

5. On March 15, 2021, income taxes accrued in 2020 were paid.

6. On March 31, 2021, 10 months of rent was paid in advance for $10,000. 12 months were used during 2021.

7. On October 1, 2021, excess land is sold for $4,000; the land was previously purchased in 2020 at a cost of $3,000.

8. On November 1, 2021, a $2 per share dividend is declared, record date November 15 and payment date December 1, 2021.

9. Equipment and building were used during 2021 & depreciation recorded (building used SL, equipment DDB)

10. Inventory is counted and $21,000 remains unsold at December 31, 2021.

11. The income tax rate is 40%.

1. Prepare the adjusted trial balance.

2. Prepare the basic financial statements for the year.

I ONLY NEED THE ADJUSTED TRIAL BALANCE AND FINANCIAL STATEMENTS FOR 2021

Financiamento 2019 Income Statement For the Year Ended December 31, 2019 Revue IPINA Net Income (Loss) O 0 29.000 Statement of Cash Flows For the Year Ended December 31, 2019 Cash Flows from Operating Active N/A Cash Flows from Investing Activites Purchase of a Building 128,000) Purchase of Equpiment 16,000) Total Cash Flows from investing Acties Cash Flemming Artis Issuing Common Stock 40,000 Borowing from a Note 10,000 Total Cash Flows from Financing Activities Net Cash Flows 16,000 6,000 28,000 $ 50,00 $ 50,000 16,000 Balance Shout December 31, 2019 Assets Cash Equipment Building Ted Assets Notes Payable Total abilities Shareholder's Equity Common Stocks Hastamine Total Stockholder's Equity Total abilities and Stockholder's Equity 10,000 10,000 Seur Joumal Entries Adjusted Trial Balance 2019 2019 Date Account Trial Balance Oct. 28. No Entry 0 Decembar 31, 2019 No Entry Account Title Debit Credit Nors Jonh 411,000 Canh 16 01010 Common Mack 40,000 Equipment 5,000 Dec. 14 Jeuilding Building 28,000 Cash Cash 28,000 Noorable 10,000 Dec. 16 Equipment 6,000 Common Stocks - 40,000 Cash 601111 Intals SO,000 50CCIO Dec. 31 Cash 10,000 Notes Payable 10,000 2020 Adjusted Tria Balance 2020 December 31, 2010 D Account This Tit Cardit 1. Cash 102,000 Cash 1,300 Accounts Receivable 19,000 Accounts Recivable 19,000 Sales Revue 121,000 Inventory 17,000 2 Inventory 14,000 Pred Kent 3,000 Accounts Paybale 13,000 Equipment 6,000 71,000 Accumulated Depreciation Equipment 2,400 3. Salaries Expense 20,000 Buildi 28.000 CAST 18,000 Accumulated Diction - Building 1,150 2.000 land 10000 4 Prepaid Rent 3,000 Accounts Payable 13,000 Rent Expense 12,000 salaries able 2.000 CH 15,000 income Tax Paydala 7.100 5. Jonh 12,000 Comman Share 57,000 Common Suck 12.000 11.000 5. Land 14,000 Cost of Goods Sold 67,000 14,000 Salarles Esponse 20,000 2. Nos Papable 10,000 Rent Expense 12,000 Interest pas 700 Donation lapse Cash 10,700 Interest Expense 700 8. Depreciation Eponse 3,550 incompense 7,100 Accumulated Depreciation - Equipe 2,400 Totals 198,650 $ 193,650 Accumulate Decoration Indice 1.150 9 Cost of Goods Sold 67,000 Inventory 57,000 10. Income Tax Expense 7,100 Income Tans Payable 7,100 40,000 0 40,000 $ 50,000 16,000 2020 Income Start For the Year Ended December 31, 2020 Sales Revenue 121,000 Cast of Goods Sold 67.000 Css Profit 54000 Salaries Expense 20,000 Rent Expense 12,000 Depreciation Expanse 3,550 Instepense 200 Inenme Taup 7,100 Net Income S 10.650 Satment of Cash Flows For the Year Ended December 31, 2020 Beginning Cash Cash Flows from Operating Activites HATHIP 102,000 Purchase Inventory 171,000) Salaries Eponse 118,000) Rent Bepense 115,000) Interest Epis 1700) Total Cash Hows from Opening Advies Cash Flows from Investing Acties Purchase of a land 114,000) Total Cash Flows from Insting Activities Cash Flows from Financing Artivites Issuing Common Stock 12,000 Paying off a Note 110,000 Total Cash Flows from Financing Activities Net Cash Flows 2010) Balance Short 14,000) 2,000 1,300 $ Cash Accounts Recivable Inventory Pnpaid Rent Equipment Les Accumulated Depreciation Equipment Building Lis: Accumulate Deprecation - Huilding Land Total Assets Liabilities Accounts Payable 1,300 19,000 17,000 3,000 6,000 12,4001 28,000 11,1501 14,000 $ 84,750 13,000 2,000 7,100 22,100 Income Tax Proble Total abilities Stockholder's Equity Common Sharm Hetained tamine Total Stockholder's Equitp Total Liabilities and Stockholder's Equity 52,000 10,650 62,650 $ 84.750 Financiamento 2019 Income Statement For the Year Ended December 31, 2019 Revue IPINA Net Income (Loss) O 0 29.000 Statement of Cash Flows For the Year Ended December 31, 2019 Cash Flows from Operating Active N/A Cash Flows from Investing Activites Purchase of a Building 128,000) Purchase of Equpiment 16,000) Total Cash Flows from investing Acties Cash Flemming Artis Issuing Common Stock 40,000 Borowing from a Note 10,000 Total Cash Flows from Financing Activities Net Cash Flows 16,000 6,000 28,000 $ 50,00 $ 50,000 16,000 Balance Shout December 31, 2019 Assets Cash Equipment Building Ted Assets Notes Payable Total abilities Shareholder's Equity Common Stocks Hastamine Total Stockholder's Equity Total abilities and Stockholder's Equity 10,000 10,000 Seur Joumal Entries Adjusted Trial Balance 2019 2019 Date Account Trial Balance Oct. 28. No Entry 0 Decembar 31, 2019 No Entry Account Title Debit Credit Nors Jonh 411,000 Canh 16 01010 Common Mack 40,000 Equipment 5,000 Dec. 14 Jeuilding Building 28,000 Cash Cash 28,000 Noorable 10,000 Dec. 16 Equipment 6,000 Common Stocks - 40,000 Cash 601111 Intals SO,000 50CCIO Dec. 31 Cash 10,000 Notes Payable 10,000 2020 Adjusted Tria Balance 2020 December 31, 2010 D Account This Tit Cardit 1. Cash 102,000 Cash 1,300 Accounts Receivable 19,000 Accounts Recivable 19,000 Sales Revue 121,000 Inventory 17,000 2 Inventory 14,000 Pred Kent 3,000 Accounts Paybale 13,000 Equipment 6,000 71,000 Accumulated Depreciation Equipment 2,400 3. Salaries Expense 20,000 Buildi 28.000 CAST 18,000 Accumulated Diction - Building 1,150 2.000 land 10000 4 Prepaid Rent 3,000 Accounts Payable 13,000 Rent Expense 12,000 salaries able 2.000 CH 15,000 income Tax Paydala 7.100 5. Jonh 12,000 Comman Share 57,000 Common Suck 12.000 11.000 5. Land 14,000 Cost of Goods Sold 67,000 14,000 Salarles Esponse 20,000 2. Nos Papable 10,000 Rent Expense 12,000 Interest pas 700 Donation lapse Cash 10,700 Interest Expense 700 8. Depreciation Eponse 3,550 incompense 7,100 Accumulated Depreciation - Equipe 2,400 Totals 198,650 $ 193,650 Accumulate Decoration Indice 1.150 9 Cost of Goods Sold 67,000 Inventory 57,000 10. Income Tax Expense 7,100 Income Tans Payable 7,100 40,000 0 40,000 $ 50,000 16,000 2020 Income Start For the Year Ended December 31, 2020 Sales Revenue 121,000 Cast of Goods Sold 67.000 Css Profit 54000 Salaries Expense 20,000 Rent Expense 12,000 Depreciation Expanse 3,550 Instepense 200 Inenme Taup 7,100 Net Income S 10.650 Satment of Cash Flows For the Year Ended December 31, 2020 Beginning Cash Cash Flows from Operating Activites HATHIP 102,000 Purchase Inventory 171,000) Salaries Eponse 118,000) Rent Bepense 115,000) Interest Epis 1700) Total Cash Hows from Opening Advies Cash Flows from Investing Acties Purchase of a land 114,000) Total Cash Flows from Insting Activities Cash Flows from Financing Artivites Issuing Common Stock 12,000 Paying off a Note 110,000 Total Cash Flows from Financing Activities Net Cash Flows 2010) Balance Short 14,000) 2,000 1,300 $ Cash Accounts Recivable Inventory Pnpaid Rent Equipment Les Accumulated Depreciation Equipment Building Lis: Accumulate Deprecation - Huilding Land Total Assets Liabilities Accounts Payable 1,300 19,000 17,000 3,000 6,000 12,4001 28,000 11,1501 14,000 $ 84,750 13,000 2,000 7,100 22,100 Income Tax Proble Total abilities Stockholder's Equity Common Sharm Hetained tamine Total Stockholder's Equitp Total Liabilities and Stockholder's Equity 52,000 10,650 62,650 $ 84.750