BUS 100

Hand in Assignment

Assigned; Nov. 10, 2020

Prepare proper format financial statements from the two different adjusted trial balances included below.

Prepare an income statement, statement of retained earnings and a balance sheet for the year ended Dec. 31, 2017.

Adjusted trial balance #1 is for a merchandising company using a perpetual inventory system.

Adjusted trial balance #2 is for a merchandising company using a periodic inventory system.

ABC Company Ltd.

#1

Adjusted Trial Balance

As at December 31, 2017

DR.

CR.

CASH

10000

ACCTS. RECEIVABLE

45000

ALLOWANCE FOR DOUBTFUL ACCTS.

1200

MERCHANDISE INVENTORY

120000

SUPPLIES INVENTORY

18000

PREPAID EXPENSES

12000

LAND

240000

BUILDING

450000

ACCUM DEPR. - BUILDING

35000

FURNITURE, FIXTURES & EQUIPMENT

125500

ACCUM. DEPR. - FURN. FIXT. & EQUIP.

24000

ACCTS. PAYABLE

60000

SALARIES & WAGES PAYABLE

15000

PAYROLL DEDUCTIONS PAYABLE

5000

INTEREST PAYABLE

2400

TAXES PAYABLE

34000

UNEARNED REVENUES PAYABLE

18000

NOTES PAYABLE - long-term

75000

BANK LOAN PAYABLE - long-term

240000

CONTRIBUTED CAPITAL - SHARE CAPITAL

50000

EARNED CAPITAL - RETAINED EARNINGS

310000

DIVIVENDS PAID

15000

SALES REVENUES - product

780000

SALES RETURNS & ALLOWANCES

12000

SALES DISCOUNTS

14000

COST OF GOODS SOLD EXPENSE

220000

SALARIES & WAGES EXPENSE

180000

EMPLOYEE BENEFITS EXPENSE

18000

BAD DEBTS EXPENSE

6700

SUPPLIES EXPENSE

14000

INSURANCE EXPENSE

11000

PROPERTY TAXES EXPENSE

8600

UTILITIES EXPENSE

12000

DEPRECIATION EXPENSE

22000

INTEREST EXPENSE

7600

REPAIRS & MAINTENANCE EXPENSE

9800

ADVERTISING & PROMOTION EXPENSE

24000

MISCELLANEOUS EXPENSE

6400

INCOME TAX EXPENSE

48000

1649600

1649600

#2

ABC Company Ltd.

Adjusted Trial Balance as at Dec. 31, 2017

DR.

CR.

CASH

10000

ACCTS. RECEIVABLE

45000

ALLOWANCE FOR DOUBTFUL ACCTS.

1200

MERCHANDISE INVENTORY - beginning

40000

Ending Merch. Invt. = 120,000

SUPPLIES INVENTORY

18000

PREPAID EXPENSES

12000

LAND

240000

BUILDING

450000

ACCUM DEPR. - BUILDING

35000

FURNITURE, FIXTURES & EQUIPMENT

125500

ACCUM. DEPR. - FURN. FIXT. & EQUIP.

24000

ACCTS. PAYABLE

60000

SALARIES & WAGES PAYABLE

15000

PAYROLL DEDUCTIONS PAYABLE

5000

INTEREST PAYABLE

2400

TAXES PAYABLE

34000

UNEARNED REVENUES PAYABLE

18000

NOTES PAYABLE - long-term

75000

BANK LOAN PAYABLE - long-term

240000

CONTRIBUTED CAPITAL - SHARE CAPITAL

50000

EARNED CAPITAL - RETAINED EARNINGS

310000

DIVIVENDS PAID

15000

SALES REVENUES - product

780000

SALES RETURNS & ALLOWANCES

12000

SALES DISCOUNTS

14000

PURCHASES

330000

PURCHASES RETURNS & ALLOWANCES

20000

PURCHASES DISCOUNTS

12000

FREIGHT-IN

2000

SALARIES & WAGES EXPENSE

180000

EMPLOYEE BENEFITS EXPENSE

18000

BAD DEBTS EXPENSE

6700

SUPPLIES EXPENSE

14000

INSURANCE EXPENSE

11000

PROPERTY TAXES EXPENSE

8600

UTILITIES EXPENSE

12000

DEPRECIATION EXPENSE

22000

INTEREST EXPENSE

7600

REPAIRS & MAINTENANCE EXPENSE

9800

ADVERTISING & PROMOTION EXPENSE

24000

MISCELLANEOUS EXPENSE

6400

INCOME TAX EXPENSE

48000

1681600

1681600