Computer equipment Accumulated depreciation (Computer equipment) Building Accumulated depreciation (Building) Inventory Prepaid insurance Accounts receivable Cash Note payable Accounts payable Unearned fees Interest payable Salaries payable Rent payable Share capital-ordinary Retained earnings The University of the West Indies QUESTION 3 (Continued) Revenues Fees earned Less: Expenses Commission expense Insurance expense Loss on sale of building Course Code: Rent expense Depreciation expense- Computer equipment Depreciation expense - Building Interest expense Other expenses Total expenses Net income Page 4 2017 $134,400 (46,500) 65,600 (14,400) 6,400 4,800 25,600 13,600 $189.500 $ 8,000 17,600 25,680 40 1,330 3,680 56,000 77,170 $189.500 ACCT2014 CARIBBEAN CARIFESTA CORPORATION Income statement For the year ended November 30, 2017 $320,000 28,240 15,500 7,200 9,800 3,200 560 110,782 2016 $124,000 (31,000) 57,600 (21,600) 10,000 4,320 28,000 4,800 $176.120 13,200 30,080 10,789 4,000 56,000 62,051 $176.120 TURN OVER 2017/../.. $ 520,000 495,282 $24.718 Additional information: 1. The company purchased computer equipment for $10,400 cash. 2. The company sold a building with a cost of $24,000 and accumulated depreciation of $14,400 for $6,400 cash. 3. The company purchased a new building with a cost of $32,000 by paying $24,000 cash and signing a $8,000, 6%, 2-year note payable. 4. Dividends were declared and paid in cash.

Page 4 QUESTION 3 (Continued) Additional information: 1. The company purchased compuler equipment for $10,400 cash. 2. The company sold a bulding with a cost of $24,000 and accumulated depreciation of $14,400 for $6,400cash. 3. The company purchased a new bulding with a cout of $32,000 by payine $24,000 calh and signing a $8,000,6%, 2-yoar note payabla 4. Dividende were declared and paid in cash