4 Events: 5 a) Purchased $14,800 of equipment for use in the business, paid $1,480 in cash and the rest was on account. 6 b) Purchased $1,200 supplies on account for future use. 7 c) Customers paid $7,500 in advance for future services. 8 d) Earned $127,500 in service revenues for 2021, including $93,800 on credit and $33,700 collected in cash. 9 e) Collected accounts receivable, $17,900. of) Sold an old vehicle (that was fully depreciated) for $2,500 cash. 1 B) On Oct. 31, paid $9,600 to rent a building for 12 months, starting on Nov. 1. -2 h) paid accounts payable, $12,400. -3 1) Declared and paid a $24,000 cash dividend. 24 Information for Adjustments: E5 Koala recorded $3,500 in service provided that had been collected in event (c), but had not yet been recorded. 26 K) During December, Koala accrued $4,740 in service that had been provided to customers on account. 27 ) Wages of $10,600 earned by employees since the December 24 payroll were not yet paid. 28 m) Determined after a year-end count that $3,200 of supplies remained on hand at the year. 29 n) Accrued annual interest at 9.0% on the outstanding balance of the loan (promissory note). 30 0) Building rental expenses for the year, paid in transaction (e), had not yet been recorded. 31 p) Depreciation for the year on the equipment was 10% of the year-end Equipment account balance. 9) Income tax for the year was $23,800. It will be paid in 2022. 32 33 B C D F G H 1 1 1 K 2 Koala Industries Inc. Unadjusted Trial Balance As of December 31, 2021 3 4 Debit Credit 5 6 Cash 7 Accounts Receivable & Supplies (on hand) 9 Prepaid Services 10 Equipment 11 Accum. Deprec. (Equip.) 12 Accounts Payable 13 Unearned Revenue 14 Notes Payable 15 Common Stock 16 Retained Earnings 17 Dividends Declared 18 Service Revenue 19 Depreciation Expense 20 Interest Expense 21 Rent Expense 22 Supplies Expense 23 Wages Expense 24 Income Tax Expense 26 Total 27 28 29 30 31 32 33 34 35 36 37 5 9 D40 x & fx A B D E 1 2 Koala Industries Inc. Adjusted Trial Balance As of December 31, 2021 3 4 5 Debit Credit 6 Cash 7 Accounts Receivable 8 Supplies (on hand) 9 Prepaid Services 10 Equipment 11 Accum. Deprec. (Equip.) 12 Accounts Payable 13 Unearned Revenue 14 Notes Payable 15 Common Stock 16 Retained Earnings 17 Dividends Declared 18 Service Revenue 19 Depreciation Expense 20 Interest Expense 21 Rent Expense 22 Supplies Expense 23 Wages Expense 24 Income Tax Expense 26 Total 27 28 29 30 NNNN 200) D16 xfx B E Koala Industries Inc. 2021 1 2 Income Statement 3 For the Year Ended: & Sales Revenue s Less: Supplies Expense 6 Wages Expense 7 Depreciation Expense Rent Expense Other Expenses 10 NET INCOME 8 9 11 2021 12 Statement of Changes in Stockholders' Equity 13 For the Year Ended: 14 Beginning Common Stock 15 Plus: Common stock issued 16 Ending common stock 18 Beginning retained earnings 19 Plus: Net income (loss) 20 Less: Dividends declared 21 Ending retained earnings 22 TOTAL STOCKHOLDER'S EQUITY Koala Industries Inc. 2021 25 26 Balance Sheet 27 As of the Last Day of: 28 Assets 29 Cash 30 Accounts Receivable 31 Supplies (on hand) 32 Prepaid Services 33 Equipment, net 34 TOTAL ASSETS 36 Liabilities 37 Accounts Payable 38 Unearned Revenue 39 Notes Payable 40 Total Liabilities Instructions Ready Grid J-Es UnAdj TB Adjusted TB Fin SRL B E 2021 25 Koala Industries Inc. 26 Balance Sheet 27 As of the Last Day of: 28 Assets 29 Cash 30 Accounts Receivable 31 Supplies (on hand) 32 Prepaid Services 33 Equipment, net 34 TOTAL ASSETS 36 Liabilities 37 Accounts Payable 38 Unearned Revenue 39 Notes Payable 40 Total Liabilities 41 Equity 42 Common Stock 43 Retained Earnings 44 Total Equity 45 TOTAL LIABILITIES AND EQUITY = 2021 48 Koala Industries Inc. 49 Statements of Cash Flows 50 For the Year Ended: 51 Cash flows from operating activities 52 Cash collected from customers 53 Cash paid to suppliers of operating services & goods 54 Net cash flow from operating activities 56 Cash flow from investing activities 57 Cash collected from selling long-term assets 58 Cash paid to purchase long-term assets 59 Net cash flow from investing activities 61 Cash flows from financing activities 62 Cash inflows from borrowing 63 Cash payments to repay debt Cash inflows from issuing Instructions Grid J-ES UnAdj TB Ready + Adjusted TB Fin Stints B E 2021 52 48 Koala Industries Inc. 49 Statements of Cash Flows 50 For the Year Ended: 51 Cash flows from operating activities Cash collected from customers 53 Cash paid to suppliers of operating services & goods 54 Net cash flow from operating activities 56 Cash flow from investing activities 57 Cash collected from selling long-term assets Cash paid to purchase long-term assets 59 Net cash flow from investing activities 61 Cash flows from financing activities Cash inflows from borrowing Cash payments to repay debt 64 Cash inflows from issuing stock Cash payments of dividends 66 Net cash flows from financing activities 58 62 63 65 68 Net change in cash 69 Beginning cash balance 70 Ending Cash Balance 71 72 73 74 75 76