Case Study

The transactions related to Growers Manufactuirng Company for the year ended 31^st December 2020 is provided herewith.

You are required to enter these transactions in the year end financial statements.

You are also required to create a horizontal financial statement model incorporating all transactions and adjustments therein.

Event No.	Transaction
1	Growers Manufacturing Company (GMC, hereafter) acquired OMR 200,000 by issuing Common Stock.
2	Started a current account in Bank Muscat. An amount of OMR50,000 deposited into the account.
3	GMC took OMR 100,000 term term loan from Bank Muscat. As per the term of the agreement, the loan will be repaid in five annual installments. The rate of interest is 4.5%.
4	On March 1, 2020, GMC entered into an agreement with MGM Real Estate Company for renting an office building. An advance of OMR12,000 is paid by cash.
5	GMC purchased office furniture OMR5,000 on credit from Fahmy Furnitures.
6	GMC bought office supplies paying OMR5,000.
7	GMC bought a car from Saud Bahwan for OMR10,000. The amount is paid by the issue of a bank cheque
8	GMC paid the amount due to Fahmy Furniture in cash
9	GMC purchased merchandize inventory for OMR50,000
10	GMC recognized sales revenue from selling inventory for OMR45,000. The cost of goods sold was OMR25,000
11	GMC paid OMR30,000 as salaries to the staff.
12	Paid utilities charges OMR400
13	Traveling expenses paid OMR100
14	GMC sold merchandize inventory for OMR 40,000 to HMT Trading Company on account. The cost of goods sold was OMR25,000
15	Paid OMR500 towards insurance premium. The premium is paid for one year, starting from 1ST July 2020.
16	GMC purchased merchandize inventory worth OMR40,000 from Global Traders, on account. The credit terms were 2/10 n/30
17	GMC returned some of the inventory purchased in Event 16. The list price of returned merchandise was OMR 1,000
18	GMC paid the amount due to Global Trades within the discount period.
19	Office supplies purchased on account OMR2,000
20	Bought computers for office OMR1,500
21	Interest on loan paid OMR750
22	GMC paid OMR 50,000 to purchase land for a place to locate the future business.
23	Dividend paid OMR10,000
24	Received amount due from HMT Trading Company.

Adjustments

1. Salary paid only for 10 months.
2. A physical examination of supplies revealed that supplies worth OMR2,000 are currently available for future use.
3. Insurance premium is paid from 1^st July 2020
4. Interest due on loan OMR4,500
5. The advance rent is paid for one year starting from 1^st March, 2020.