Company name: Alpha Inc. Year ended December $31,2017$

Please open the ledger accounts for the following transactions. Furthermore, create for the year

ended December $31,2017$ the income statement and the balance sheet based on these transactions.

Additional Information:

Taxes do not have to be taken into account.

If necessary use linear depreciations.

The information regarding the Balance sheet at December $31,2016$ is the following:

Transactions in $2017$:

New shares are issued for $30\mathrm{.}000.$

On January $1,$ Alpha Inc. receives a bank loan of $50\mathrm{.}000$ with an interest expense of $8\%$ per

year to be paid in cash before the end of the year. Moreover, by the end of the year it repays

outstanding loans from $2016$ in full.

On January $1,$ Alphas Inc. buys machinery in cash for $150\mathrm{.}000.$ It expects to use the machine

for five years and the residual value to be $5\mathrm{.}000.$ At the end of the fiscal year, the company

adjusts for depreciation. Afterwards, an impairment test is carried out. Fair value less cost to

sell is $115\mathrm{.}000$ and value in use $110\mathrm{.}000.$

At the end of the fiscal year, the company records accrued salary expense for $60\mathrm{.}000.$

Alpha Inc. collects from customers $160\mathrm{.}000$

The company performs service revenue for $300\mathrm{.}000.$ Half of the sale is paid in cash; the

other half is on account. A new allowance for uncollectible accounts of $5\%$ is set for the

accounts receivable. At the end of the fiscal year, the company writes off $3\%$ of its receivables.

On June $1,$ Alpha Inc. pays rent expense in advance by the amount of $24\mathrm{.}000$ for the last six

months of this year and for the first half of next year.

The company purchases inventory for $90\mathrm{.}000$ on account. At year end, the inventory on hand

is $12\mathrm{.}000.$

The company pays a cash dividend by the amount of $20\mathrm{.}000.$

Question $1$: What is the impairment loss in the income statement?

Question $2$: What is the net income?

Question $3$: What is the Bad receivable expense?

Question $4$: What is the depreciation expense

Question $5$: What is the ending cash balance?

Question $6$: What is the ending balance of the accounts receivable, Net?

Question $7$: What is the ending balance of PPE

Question $8$: What is the ending balance of Retained Earnings?

Question $9$: What is the value of Total liability?