ABC Power Company

Unadjusted Trial Balance

$31-$Dec$-24$

Cash $$450,000$

Accounts receivable $30,000$

Notes receivable $10,000$

Inventory $100,000$

Supplies $1,500$

Prepaid rent $5,000$

Equipment $500,000$

Furniture $20,000$

Accumulated depreciation$$equipment $$200,000$

Accumulated depreciation$$furniture $5,000$

Accounts payable $70,000$

Deferred revenue $50,000$

Bank loan payable, due $202795,000$

Retained earnings $180,000$

Common shares $150,000$

Dividends declared $5,000$

Revenue $741,500$

Cost of Goods Sold $200,000$

Salaries expense $50,000$

Insurance expense $10,000$

Rent expense $55,000$

Office expense $5,000$

Income tax expense $50,000\_\_\_\_\_\_$

$$1,491,500$ $$1,491,500$

During $2024,$ the following events took place, but are not reflected in the above unadjusted trial balance:

$1.$ ABC purchased a piece of equipment on January $1,2024,$ for $$275,000.$ It has an estimated useful life of eight years and a $$25,000$ residual value. ABC uses straight$-$line depreciation.

$2.$ The following took place during December and were not recorded:

ABC sells USB cables. The company uses a perpetual inventory system and the FIFO inventory method.

ABC

Inventory Transactions

Date $2024$ Transaction Number of Units Unit Cost$/$Sales Price

December $1$ Beginning Balance $15,000$ $$5\mathrm{.}00$

$4$ Sales $-5,000$ $$10\mathrm{.}00$

$8$ Sales $-4,000$ $$10\mathrm{.}00$

$11$ Purchases $3,000$ $$6\mathrm{.}00$

$18$ Sales $-2,000$ $$9\mathrm{.}50$

$22$ Purchases $10,000$ $$5\mathrm{.}50$

$27$ Sales $-7,000$ $$10\mathrm{.}00$

$29$ Purchases $2,000$ $$6\mathrm{.}00$

$29$ Sales $-3,000$ $$9\mathrm{.}50$

$3.$ On January $1,2024,$ ABC borrowed $$200,000$ at $5\%$ for five years. Equal instalment payments of $$25,000$ are due semi$-$annually on July $1,2024$ and January $1,2025.$

$4.$ An employee who was fired has filed a lawsuit against ABC for wrongful dismissal. Lawyers are defending the company, but the outcome is uncertain.

$5.$ Repurchased $50,000$ common shares for $$2$ per share. a$)$prepare a statement of income for ABC company for the year ending december $31,2024.$ assume income tax remains $$50,000.$ include all proper titles and headings in your statement. b$)$prepare a statement of financial position for ABC company as at the end of december $31,2024.$ include all proper titles and headings c$)$prepare a statement of retained earnings for the year ending december $31,2024.$ include all proper titles and headings