Activity 1

Loving Care Company provided the following balances on December 21, 2021:

Franchise 200,000

Goods in process 600,00

Building 4,000,000

Employees income tax payable 20,000

Prepaid insurance 20,000

Raw materials 200,000

Notes payable 100,000

Cash 420,000

Accounts receivable 500,000

Retained earnings 880,000

Finished goods 400,000

Accrued Expenses 30,000

Trading securities 250,000

Claim receivable 20,000

Machinery 2,000,000

Advance from customer 100,000

Tools 40,000

Goodwill 100,000

Accumulated Depreciation-Machinery 1,300,000

Allowance for doubtful account 50,000

Plant expansion fund500,000

Serial bonds payable (500,000 due every July 31 of each year 2,500,000

Accounts payable 300,000

Share capital 5,000,000

Accumulated Depreciation-Building 1,600,000

Income tax payable 60,000

Factory supplies 50,000

Share premium 500,000

Accrued interest on notes payable 10,000

Investment in bonds 1,500,000

Land 1,500,000

Notes Receivable 150,000

Required:

Prepare properly classified statement of financial position on December 31, 2021

Activity 2

Alexandria Company provided the following data for the current year:

Inventory end of the fiscal period as compared with balances at the beginning of the fiscal period were as follows:

Finished goods 200,000 decrease

Goods in process 90,000 decrease

Raw materials 100,000 increase

Indirect labor 600,000

Factory taxes 130,000

Sales 8,000,000

Purchase 1,600,000

Office salaries 800,000

Freight in 80,000

Income tax expense 170,000

Depreciation-machinery 50,000

Advertising 120,000

Office supplies expense 30,000

Factory Superintendence 480,000

Direct labor 1,480,000

Factory heat, light and power 220,000

Doubtful account 100,000

Factory supplies expense1 20,000

Sales salaries 520,000

Delivery expense 160,000

Factory maintenance 150,000

Required:

Prepare income statement for the current year supported by a schedule of cost goods manufactured.