ANSWER PART 3 AND 4 PLEASE
katrina dela fuente Comments Share X HA Assignment 42-W2022 (2) - Protected ViewSaved to this PC- Scarch (Alti) ( File Home Insert Draw Design Layout References Mailings Review View Help PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit it's sater to stay in Protected View. Enable Editing The bookkeeper for Galo Corp has prepared the following balance sheet as at December 31, 2021: Gato Corp Balance Sheet December 31, 2021 Current Liabilities Long-term Liabilities Shareholders' Equity $ 280,000 480,000 175,200 Cash Accounts Receivable (net) Inventories Investments Land Building (net) Trademark (net) $ 136,000 103,200 64,000 56,000 320,000 240,000 16,000 $935.200 $935.200 320 The following additional information is provided: 1. The cash balance includes: Petty cash fund T-bill Cash advance to employee, payable on demand Saving Account at TD Bank Money marler fund Chequing account at the Bank of Montreal Bank overdraft at the Scotia Bank (no other accounts are held at Total $ 6,400 1,600 4.000 8.000 117.920 12.240) $136,000 2. The allowance for doubtful accounts $16,320. 3. The net realizable value of the inventory that is included in the Balance Sheet is $85,000. In addition, inventories do not include: $32,000 of merchandise that was in transit at December 31. The inventory was sold to ARC Inc. with terms fo.b. destination point (the net realizable value of this inventory is $30,000). $16,000 was shipped to Park Inc. from Gato ou consignment. The net realizable value - 1004 Page 2 of 5 845 word: D Focus EL Type here to search H W 2C Eua) ENG 4 854 AM 2022-04-03 HA Assignment 42-W2022 (2) - Protected ViewSaved to this PC- Scarch (Alto) ( katrina dela fuente o File Home Insert Draw Design Layout References Mailings Review View Help Comments Share Enable Editing X PROTECTED VIEW Be carefulfiles from the Internet can contain vinises. Unless you need to edit it's sater to stay in Protected View In addition, inventories do not include: $32,000 of merchandise that was in transit at December 31. The inventory was sold to ABC Inc. with terms fo.b. destination point (the net realizable value of this inventory is $30,000). $16,000 was shipped to Park Inc. from Gato on consignment. The net realizable value for this inventory is $24.000. 4. The investments section includes the following: An interest bearing note receivable of $8,000 that was issued on October 14, 2021 bearing interest at 2% and is due on October 1, 2022 Long-term FV-OCI investment $28,800 carrying value (fair value $34,100 at December 31,2021). Management plans on holding on to these investments for a number of years. . IV-NI Investment 1,000 common shares of BP Inc, purchased at $19.20 per share (fair value $17.50 per share at December 31, 2021). Gato expected to sell the shares as soon as the market price increases more next year . - 1004 Page 2 of 5 845 word: D Focus EL Type here to search EH W 2C Eua) ENG 4 854 AM 2022-04-03 HA Assignment 42-W2022 (2) - Protected ViewSaved to this PC- Scarch (Alti ) katrina dela fuente File Home Insert Draw Design Layout References Mailings Review View Help Comments Share PROTECTED VIEW Be careful-files from the Internet can contain vinuses. Unless you need to edit it's safer to stay in Protected View Enable Editing X 5. The land balance includes: land used for operations and recorded at its cost of $320,000 (the appraisal value of the land in 2021 was $550,000). The company doesn't use the revaluation model. 6. The building originally cost $960,000. Depreciation for 2021 has already been recorded. Meridian Credit Union has pledged the building as security for their $480,000 loan to Gato Corp. (collateral), the loan bears annual interests at 2% and is due January 144.2042. On January 1% of each year Gato pays down S24,000 in principal and the annual interest. 7. The trademark originally cost $25.600 and is being amortized over & years on a straight-line basis. Amortization for 2021 had already been recorded. 8. Common shares of $60,000. The company has 100,000 authorized, 5,000 issued and outstanding 9. Current Liabilities include: Accounts Payable $26,000, Deferred Revenue $56,000 and Pension Obligation $198.000. 10. The Accumulated Other Comprehensive Income at the beginning of the year was $50,000 Required: Part 1 (25 marks) The company is a Canadian public company. Prepare a Statement of Financial Position sheet at December 31, 2021 in good form. The categories are: Current Assets, Long-term Investments, Property, Plant & Equipment, Intangible Assets, Current Liabilities Long-term Liabilities and Shareholders' Equity. Page 3 of 5 845 word: C Focus EL 1004 1 Type here to search O o EH w 2C QUEC) ENG a 855 AM 2022-04-03 2 HA Assignment 42-W2022 (2) - Protected ViewSaved to this PC- Scarch (Alto) katrina dela fuente o File Home Insert Draw Design Layout References Mailings Review View Help Comments Share PROTECTED VIEW Be carefulfiles from the Internet can contain vinises. Unless you need to edit it's sater to stay in Protected View Enable Editing X Part 2 (4 marks) Including any disclosure requirements. Part 3 (6 marks) Prepare any adjusting entries that you needed to make Do not include adjusting entries for depreciation, amortization, inventory or dad debt expense. Part 4 (1 mark) What would be the Accumulated Other Comprehensive Income at the end of the 2021? Part 5 (4 marks) Peer evaluation ) Only submit if any of your group member did not strongly contribute to the group Assignment. Page 3 of 5 845 word: D Focus E 1004 1 Type here to search EH W 2C QUEC) ENG a 855 AM 2022-04-03 2 katrina dela fuente Comments Share X HA Assignment 42-W2022 (2) - Protected ViewSaved to this PC- Scarch (Alti) ( File Home Insert Draw Design Layout References Mailings Review View Help PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit it's sater to stay in Protected View. Enable Editing The bookkeeper for Galo Corp has prepared the following balance sheet as at December 31, 2021: Gato Corp Balance Sheet December 31, 2021 Current Liabilities Long-term Liabilities Shareholders' Equity $ 280,000 480,000 175,200 Cash Accounts Receivable (net) Inventories Investments Land Building (net) Trademark (net) $ 136,000 103,200 64,000 56,000 320,000 240,000 16,000 $935.200 $935.200 320 The following additional information is provided: 1. The cash balance includes: Petty cash fund T-bill Cash advance to employee, payable on demand Saving Account at TD Bank Money marler fund Chequing account at the Bank of Montreal Bank overdraft at the Scotia Bank (no other accounts are held at Total $ 6,400 1,600 4.000 8.000 117.920 12.240) $136,000 2. The allowance for doubtful accounts $16,320. 3. The net realizable value of the inventory that is included in the Balance Sheet is $85,000. In addition, inventories do not include: $32,000 of merchandise that was in transit at December 31. The inventory was sold to ARC Inc. with terms fo.b. destination point (the net realizable value of this inventory is $30,000). $16,000 was shipped to Park Inc. from Gato ou consignment. The net realizable value - 1004 Page 2 of 5 845 word: D Focus EL Type here to search H W 2C Eua) ENG 4 854 AM 2022-04-03 HA Assignment 42-W2022 (2) - Protected ViewSaved to this PC- Scarch (Alto) ( katrina dela fuente o File Home Insert Draw Design Layout References Mailings Review View Help Comments Share Enable Editing X PROTECTED VIEW Be carefulfiles from the Internet can contain vinises. Unless you need to edit it's sater to stay in Protected View In addition, inventories do not include: $32,000 of merchandise that was in transit at December 31. The inventory was sold to ABC Inc. with terms fo.b. destination point (the net realizable value of this inventory is $30,000). $16,000 was shipped to Park Inc. from Gato on consignment. The net realizable value for this inventory is $24.000. 4. The investments section includes the following: An interest bearing note receivable of $8,000 that was issued on October 14, 2021 bearing interest at 2% and is due on October 1, 2022 Long-term FV-OCI investment $28,800 carrying value (fair value $34,100 at December 31,2021). Management plans on holding on to these investments for a number of years. . IV-NI Investment 1,000 common shares of BP Inc, purchased at $19.20 per share (fair value $17.50 per share at December 31, 2021). Gato expected to sell the shares as soon as the market price increases more next year . - 1004 Page 2 of 5 845 word: D Focus EL Type here to search EH W 2C Eua) ENG 4 854 AM 2022-04-03 HA Assignment 42-W2022 (2) - Protected ViewSaved to this PC- Scarch (Alti ) katrina dela fuente File Home Insert Draw Design Layout References Mailings Review View Help Comments Share PROTECTED VIEW Be careful-files from the Internet can contain vinuses. Unless you need to edit it's safer to stay in Protected View Enable Editing X 5. The land balance includes: land used for operations and recorded at its cost of $320,000 (the appraisal value of the land in 2021 was $550,000). The company doesn't use the revaluation model. 6. The building originally cost $960,000. Depreciation for 2021 has already been recorded. Meridian Credit Union has pledged the building as security for their $480,000 loan to Gato Corp. (collateral), the loan bears annual interests at 2% and is due January 144.2042. On January 1% of each year Gato pays down S24,000 in principal and the annual interest. 7. The trademark originally cost $25.600 and is being amortized over & years on a straight-line basis. Amortization for 2021 had already been recorded. 8. Common shares of $60,000. The company has 100,000 authorized, 5,000 issued and outstanding 9. Current Liabilities include: Accounts Payable $26,000, Deferred Revenue $56,000 and Pension Obligation $198.000. 10. The Accumulated Other Comprehensive Income at the beginning of the year was $50,000 Required: Part 1 (25 marks) The company is a Canadian public company. Prepare a Statement of Financial Position sheet at December 31, 2021 in good form. The categories are: Current Assets, Long-term Investments, Property, Plant & Equipment, Intangible Assets, Current Liabilities Long-term Liabilities and Shareholders' Equity. Page 3 of 5 845 word: C Focus EL 1004 1 Type here to search O o EH w 2C QUEC) ENG a 855 AM 2022-04-03 2 HA Assignment 42-W2022 (2) - Protected ViewSaved to this PC- Scarch (Alto) katrina dela fuente o File Home Insert Draw Design Layout References Mailings Review View Help Comments Share PROTECTED VIEW Be carefulfiles from the Internet can contain vinises. Unless you need to edit it's sater to stay in Protected View Enable Editing X Part 2 (4 marks) Including any disclosure requirements. Part 3 (6 marks) Prepare any adjusting entries that you needed to make Do not include adjusting entries for depreciation, amortization, inventory or dad debt expense. Part 4 (1 mark) What would be the Accumulated Other Comprehensive Income at the end of the 2021? Part 5 (4 marks) Peer evaluation ) Only submit if any of your group member did not strongly contribute to the group Assignment. Page 3 of 5 845 word: D Focus E 1004 1 Type here to search EH W 2C QUEC) ENG a 855 AM 2022-04-03 2
