Can someone help me with these questions please.
Naples Retail Ltd. started its operation in 2019. The following is the balance sheet of Naples Retail Lid as at Dec. 31, 2019. Assets Current Assets: Cash Accounts receivable $99,000 Allowance for doubtful accounts (AFDA) 15,000 Inventory (2,000) 1,750 Prepaid expenses Property, Plant and Equipment: 9,250 Equipment 25,000 Accumulated depreciation Total assets (62,500) $185,500 Liabilities and Equities Current Liabilities Accounts payable $8,000 term Liabilities: Mortgage payable 10,500 Equity Common stock Retained ear 52,500 Total liabilities and stockholders' equity $185,500 It is the second year of its operation. The transactions of the company for the year 2020 are described below: . Net sales for the year were $100,000 All the sales were on credit (Transaction #1) Th company collected 50% of credit sales during the year (Transaction ing the year (Transaction #2) and 90% of the accounts receivable of last year (Transaction #3). The rest of last year's receivable was uncollectible and written off as bad debt (Transaction #4). The company uses allowance method for recording allowances for doubtful accounts (AFDA). It calculates AFDA b using the percentage method. It estimates that 1% of credit sales will be uncollectible (Transaction #5). . Naples buys finished goods for resale to the customers. It records inventory under perpetual method following FIFO cost flow during the year. A The company sold 800 units of inventory Purchases are on credit and the ending balance of accounts payable was $4,500 (Transaction #7 paid payables). The details of all purchases for the year are as follows; (Transaction #6 - do not include beginning inventory) Date Beginning inventory 50 Cost Per Unit Jan.30,2020 100 $35 Amount $30 $1750 March,30,202 200 $32 3,000 200 6.400 Sept.30,2020 Dec.28,2020 300 7,000 Total 850 10.200 $28,350 Naples purchased the equipment in 2019. The useful life of the equipment was estimate to be 4 years. The salvage value of the equipment was estimated to be $5,000. The Company uses double-declining method of depreciation for equipment. (Transaction #8) Other information: Interest expenses for the year were $ 1,000, relates to Mortgage Payable. (Transaction #9 Operating expenses of Naples for 2020 was $ 20,000 (Transaction #10) Prepaid expenses of last year relates to prepaid insurance premium. The total amount of insurance premium paid in la paid in last year has expired during current year. (Transaction #11) Mortgage payable amount of $3,500 is paid by the company in the month of February. (Transaction #12) Record Cost of Goods Sold of 800 Units (Transaction #13) Required: 1. Record the above transactions in the accounting equation. (Show necessary calculations). (35 Marks) Hint: Record the beginning balances from the above Balance Sheet first 2. Prepare a multi-step income statement. (10 Marks) 3. Prepare a Classified Balance Sheet (15 Marks) Naples Retail Limited Income Statement For the Year Ended December 31, 2020 Naples Retail Limited Balance Sheet As at December 31, 2020 Assets Current Assets: Total Current Assets Property. Plant and Equipment: Total Property Plant & Equipment Total assets Current Liabilities: Liabilities and Equities Long-term Liabilities: Total Liabilities
