Based on the given worksheet below, make a:

a. Statement of Financial Position

b. Statement of Comprehensive Income

c. Statement of Changes in Shareholders Equity

d. Statement of Cash Flows

e. Notes to Financial Statements

f. Dividend Allocation

MAKE USE OF THE FOLLOWING PROFORMA TO ANSWER THE QUESTION:

Fall Bake Shop started operating on January 1, 2019. Provided below is the adjusted trial balance for two years. Fall Bake Shop Corporation Adjusted Trial Balance December 31 2020 2019 Debit Debit Credit 7,100,000.00 819,500.00 Credit 6,700,000.00 807,300.00 2,328,300.00 2,116,700.00 140,000.00 1,400,000.00 1,000,000.00 800,000.00 46,570.00 70,000.00 700,000.00 500,000.00 400,000.00 42,330.00 3,500,000.00 588,370.00 3,500,000.00 22,138,550.00 5% Preference share capital, P100 par Accounts payable Accounts receivable Accumulated depreciation - Building Accumulated depreciation - Cooking equipment Accumulated Depreciation - Office equipment Accumulated depreciation - Store equipment Allowance for bad debts Building Cash Cooking equipment Cost of goods sold Deficit Depreciation expense - building Depreciation expense - office equipment Depreciation expense - store equipment Dividends payable Doubtful accounts Finished goods inventory Freight-out Income tax expense Income tax payable Insurance expense of goods sold in transit Interest expense Interest income Land Loss due to fire Notes payable, due on December 31, 2021 Office equipment 3,500,000.00 99,860.00 3,500,000.00 21,972,168.00 4,070,480.00 70,000.00 500,000.00 400,000.00 0.00 70,000.00 500,000.00 400,000.00 ? ? 4,240.00 1,374,912.00 1,355,100.00 0.00 42,330.00 1,354,320.00 1,231,900.00 0.00 0.00 0.00 271,020.00 96,000.00 246,380.00 60,000.00 100,000.00 20,000.00 3,000,000.00 500,000.00 2,400,000.00 0.00 800,000.00 500,000.00 2,500,000.00 2,500,000.00 2020 2019 11,290.00 135,510.00 10,270.00 123,190.00 10,000,000.00 9,400,000.00 45,170.00 954,800.00 41,060.00 940,500.00 240,000.00 210,000.00 2,032,650.00 1,355,100.00 1,847,850.00 1,231,900.00 141,200.00 27,940,000.00 128,300.00 25,400,000.00 279,400.00 558,800.00 254,000.00 508,000.00 Office supplies Office supplies expense Ordinary share capital, P5 par Prepaid insurance Raw materials inventory Rental income Salaries and wages of admin employees Salaries and wages of sales agents Salaries payable Sales Sales discounts Sales returns and allowances Share Premium - Ordinary Share Premium - Preference Store equipment Store supplies Store supplies expense Subscribed ordinary share capital Subscribed preference share capital Subscription receivable - Ordinary Subscription receivable - Preference Treasury Shares at cost, ordinary Treasury Shares at cost, preference Work in process inventory 1,500,000.00 1,065,000.00 1,410,000.00 1,005,000.00 2,000,000.00 22,590.00 271,020.00 2,000,000.00 20,530.00 246,380.00 2,000,000.00 500,000.00 1,880,000.00 1,340,000.00 800,000.00 200,000.00 160,000.00 78,100.00 1,145,760.00 752,000.00 536,000.00 150,400.00 73,700.00 1,128,600.00 Totals 55,592,270.00 55,592,270.00 50,512,930.00 50,512,930.00 Additional Information: 1. Inventories as of January 1 Raw materials inventory Work in process inventory Finished goods inventory 2020 572,000.00 765,000.00 1,800,000.00 2019 520,000.00 850,000.00 1,500,000.00 2. Cost of Goods Sold related expenses Purchases Freight-in Purchase returns and allowances Direct Labor Factory Overhead (including the depreciation expense for the cooking equipment) 2020 9,548,000.00 477,400.00 190,960.00 5,671,000.00 6,805,200.00 2019 9,405,000.00 470,250.00 188,100.00 5,781,100.00 6,937,300.00 3. Preference shares are cumulative and non-participating. 800,000.00 Dividends were declared last December 25, 2019, and was distributed to shareholders last January 20, 2020 Dividends were declared last December 28, 2020, and for distribution to shareholders on February 1, 2021. 1,000,000.00 2. Cost of Goods Sold related expenses Purchases Freight-in Purchase returns and allowances Direct Labor Factory Overhead (including the depreciation expense for the cooking equipment) 2020 9,548,000.00 477,400.00 190,960.00 5,671,000.00 6,805,200.00 2019 9,405,000.00 470,250.00 188,100.00 5,781,100.00 6,937,300.00 3. Preference shares are cumulative and non-participating. 800,000.00 Dividends were declared last December 25, 2019, and was distributed to shareholders last January 20, 2020 Dividends were declared last December 28, 2020, and for distribution to shareholders on February 1, 2021. 1,000,000.00 BUSINESS NAME Statement of Financial Position As of ASSETS Note Current Assets Cash & cash equivalents Trade & other receivables Inventories Prepayments Total Current Assets X X X X X1 X2 X3 X4 X5=SUM (X1:X4) Non-current Assets Property, plant & equipment Account title Account title Total Non-current Assets X6 X7 X8 X9=SUM (X6:X8) TOTAL ASSETS X10=X5+X9 LIABILITIES & EQUITY LIABILITIES Current Liabilities Trade & other payables Account title Account title X11 X12 X13 X14=SUM (X11:X13) Total Current Liabilities Non-current Liabilities Account title Account title X15 X16 X17=SUM (X15:X16) Total Non-current Liabilities Total Liabilities X18=X14+X17 EQUITY X19 TOTAL LIABILITIES & EQUITY X20=X18+X19 BUSINESS NAME Statement of Comprehensive Income For the period ended Note X X1 X2 X3=X1-X2 Net Sales Revenue Less: Cost of Goods Sold/Cost of Sales/Cost of Service Gross Profit Less: Operating Expenses Marketing & Distribution General & Administrative Other Expenses Total Operating Expenses XXX X4 X5 X6 X7=X4+X5+X6 X Profit from Operations Add: Other Income Earnings before Interests & Taxes Add/Less: Net Interest Income/Expense Earnings before Taxes Less: Income Tax Expense Net Profit/(Loss) Other Comprehensive Income Total Comprehensive Income X8=X3-X7 X9 X10=X8+X9 X11 X12=X10+-X11 X13 X14=X12-X13 X15 X16=X14+X15 BUSINESS NAME Statement of Changes in Equity For the year ended December 31 Subscribed Treasury Subscribed Preference Shares Ordinary Share Capital Share Preference Share Capital Ordinary Share Capital Share Premium Treasury Shares Total Shareholders Equity Balances, Beginning Balances, Ending Notes to Financial Statements Note 1 - Cash & cash equivalents Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Note 2 - Trade & other receivables Account title Account title Account title Total X1 X2 X3 SUM (X1X3) X1 Note 3 - Inventories Account title Account title Account title Total Note 4 - Prepayments Account title Account title Account title Total X2 X3 SUM (X1:X3) X1 X2 X3 SUM (X1X3) Note 5 - Property, plant & equipment Account title Account title Less: Accumulated depreciation Account title Less: Accumulated depreciation Total X1 X2 (X3) X4 (X5) SUM (X1:X5) Note 6 - Trade & other payables Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Note 7 - Net Sales Revenue Gross Sales Less: Sales returns & allowances Sales discount Net sales revenue X1 (X2) (X3) SUM (X1X3) X1 Note 8 - Cost of Goods Sold Merchandise inventory, beginning Add: Net purchases Purchases Purchase returns & allowances Purchase discount Freight-in Cost of goods available for sale Less: Merchandise inventory, ending Cost of goods sold X2 (X3) (X4) X5 X6=SUM (X1:X5) X7 X8=X6-X7 Note 9 - Marketing & Distribution Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Note 10 - General & Administrative Account title Account title Account title Total www SUM (X1X3) Note 11 - Net Interest/Expense Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Note 12 - Other income Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Fall Bake Shop started operating on January 1, 2019. Provided below is the adjusted trial balance for two years. Fall Bake Shop Corporation Adjusted Trial Balance December 31 2020 2019 Debit Debit Credit 7,100,000.00 819,500.00 Credit 6,700,000.00 807,300.00 2,328,300.00 2,116,700.00 140,000.00 1,400,000.00 1,000,000.00 800,000.00 46,570.00 70,000.00 700,000.00 500,000.00 400,000.00 42,330.00 3,500,000.00 588,370.00 3,500,000.00 22,138,550.00 5% Preference share capital, P100 par Accounts payable Accounts receivable Accumulated depreciation - Building Accumulated depreciation - Cooking equipment Accumulated Depreciation - Office equipment Accumulated depreciation - Store equipment Allowance for bad debts Building Cash Cooking equipment Cost of goods sold Deficit Depreciation expense - building Depreciation expense - office equipment Depreciation expense - store equipment Dividends payable Doubtful accounts Finished goods inventory Freight-out Income tax expense Income tax payable Insurance expense of goods sold in transit Interest expense Interest income Land Loss due to fire Notes payable, due on December 31, 2021 Office equipment 3,500,000.00 99,860.00 3,500,000.00 21,972,168.00 4,070,480.00 70,000.00 500,000.00 400,000.00 0.00 70,000.00 500,000.00 400,000.00 ? ? 4,240.00 1,374,912.00 1,355,100.00 0.00 42,330.00 1,354,320.00 1,231,900.00 0.00 0.00 0.00 271,020.00 96,000.00 246,380.00 60,000.00 100,000.00 20,000.00 3,000,000.00 500,000.00 2,400,000.00 0.00 800,000.00 500,000.00 2,500,000.00 2,500,000.00 2020 2019 11,290.00 135,510.00 10,270.00 123,190.00 10,000,000.00 9,400,000.00 45,170.00 954,800.00 41,060.00 940,500.00 240,000.00 210,000.00 2,032,650.00 1,355,100.00 1,847,850.00 1,231,900.00 141,200.00 27,940,000.00 128,300.00 25,400,000.00 279,400.00 558,800.00 254,000.00 508,000.00 Office supplies Office supplies expense Ordinary share capital, P5 par Prepaid insurance Raw materials inventory Rental income Salaries and wages of admin employees Salaries and wages of sales agents Salaries payable Sales Sales discounts Sales returns and allowances Share Premium - Ordinary Share Premium - Preference Store equipment Store supplies Store supplies expense Subscribed ordinary share capital Subscribed preference share capital Subscription receivable - Ordinary Subscription receivable - Preference Treasury Shares at cost, ordinary Treasury Shares at cost, preference Work in process inventory 1,500,000.00 1,065,000.00 1,410,000.00 1,005,000.00 2,000,000.00 22,590.00 271,020.00 2,000,000.00 20,530.00 246,380.00 2,000,000.00 500,000.00 1,880,000.00 1,340,000.00 800,000.00 200,000.00 160,000.00 78,100.00 1,145,760.00 752,000.00 536,000.00 150,400.00 73,700.00 1,128,600.00 Totals 55,592,270.00 55,592,270.00 50,512,930.00 50,512,930.00 Additional Information: 1. Inventories as of January 1 Raw materials inventory Work in process inventory Finished goods inventory 2020 572,000.00 765,000.00 1,800,000.00 2019 520,000.00 850,000.00 1,500,000.00 2. Cost of Goods Sold related expenses Purchases Freight-in Purchase returns and allowances Direct Labor Factory Overhead (including the depreciation expense for the cooking equipment) 2020 9,548,000.00 477,400.00 190,960.00 5,671,000.00 6,805,200.00 2019 9,405,000.00 470,250.00 188,100.00 5,781,100.00 6,937,300.00 3. Preference shares are cumulative and non-participating. 800,000.00 Dividends were declared last December 25, 2019, and was distributed to shareholders last January 20, 2020 Dividends were declared last December 28, 2020, and for distribution to shareholders on February 1, 2021. 1,000,000.00 2. Cost of Goods Sold related expenses Purchases Freight-in Purchase returns and allowances Direct Labor Factory Overhead (including the depreciation expense for the cooking equipment) 2020 9,548,000.00 477,400.00 190,960.00 5,671,000.00 6,805,200.00 2019 9,405,000.00 470,250.00 188,100.00 5,781,100.00 6,937,300.00 3. Preference shares are cumulative and non-participating. 800,000.00 Dividends were declared last December 25, 2019, and was distributed to shareholders last January 20, 2020 Dividends were declared last December 28, 2020, and for distribution to shareholders on February 1, 2021. 1,000,000.00 BUSINESS NAME Statement of Financial Position As of ASSETS Note Current Assets Cash & cash equivalents Trade & other receivables Inventories Prepayments Total Current Assets X X X X X1 X2 X3 X4 X5=SUM (X1:X4) Non-current Assets Property, plant & equipment Account title Account title Total Non-current Assets X6 X7 X8 X9=SUM (X6:X8) TOTAL ASSETS X10=X5+X9 LIABILITIES & EQUITY LIABILITIES Current Liabilities Trade & other payables Account title Account title X11 X12 X13 X14=SUM (X11:X13) Total Current Liabilities Non-current Liabilities Account title Account title X15 X16 X17=SUM (X15:X16) Total Non-current Liabilities Total Liabilities X18=X14+X17 EQUITY X19 TOTAL LIABILITIES & EQUITY X20=X18+X19 BUSINESS NAME Statement of Comprehensive Income For the period ended Note X X1 X2 X3=X1-X2 Net Sales Revenue Less: Cost of Goods Sold/Cost of Sales/Cost of Service Gross Profit Less: Operating Expenses Marketing & Distribution General & Administrative Other Expenses Total Operating Expenses XXX X4 X5 X6 X7=X4+X5+X6 X Profit from Operations Add: Other Income Earnings before Interests & Taxes Add/Less: Net Interest Income/Expense Earnings before Taxes Less: Income Tax Expense Net Profit/(Loss) Other Comprehensive Income Total Comprehensive Income X8=X3-X7 X9 X10=X8+X9 X11 X12=X10+-X11 X13 X14=X12-X13 X15 X16=X14+X15 BUSINESS NAME Statement of Changes in Equity For the year ended December 31 Subscribed Treasury Subscribed Preference Shares Ordinary Share Capital Share Preference Share Capital Ordinary Share Capital Share Premium Treasury Shares Total Shareholders Equity Balances, Beginning Balances, Ending Notes to Financial Statements Note 1 - Cash & cash equivalents Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Note 2 - Trade & other receivables Account title Account title Account title Total X1 X2 X3 SUM (X1X3) X1 Note 3 - Inventories Account title Account title Account title Total Note 4 - Prepayments Account title Account title Account title Total X2 X3 SUM (X1:X3) X1 X2 X3 SUM (X1X3) Note 5 - Property, plant & equipment Account title Account title Less: Accumulated depreciation Account title Less: Accumulated depreciation Total X1 X2 (X3) X4 (X5) SUM (X1:X5) Note 6 - Trade & other payables Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Note 7 - Net Sales Revenue Gross Sales Less: Sales returns & allowances Sales discount Net sales revenue X1 (X2) (X3) SUM (X1X3) X1 Note 8 - Cost of Goods Sold Merchandise inventory, beginning Add: Net purchases Purchases Purchase returns & allowances Purchase discount Freight-in Cost of goods available for sale Less: Merchandise inventory, ending Cost of goods sold X2 (X3) (X4) X5 X6=SUM (X1:X5) X7 X8=X6-X7 Note 9 - Marketing & Distribution Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Note 10 - General & Administrative Account title Account title Account title Total www SUM (X1X3) Note 11 - Net Interest/Expense Account title Account title Account title Total X1 X2 X3 SUM (X1X3) Note 12 - Other income Account title Account title Account title Total X1 X2 X3 SUM (X1X3)