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Flamingo, a limited liability company, has an accounting year end of 31 December. The accountant is preparing the financial statements as at 31 December 2019

  1. Flamingo, a limited liability company, has an accounting year end of 31 December. The accountant is preparing the financial statements as at 31 December 2019 and requires your assistance. The following unadjusted trial balance has been extracted from the general ledger.

account

Dr

Cr

Plant & Equipment at cost

370,000

Plant & Equipment accumulated depreciation, 1 Jan 2019

30,000

Building at cost

110,000

Building accumulated depreciation, 1 Jan 2019

55,000

Prepaid rent

30,000

Bank balance

35,000

Revenues

915,000

Supplies

15,000

Purchases

555,000

Inventory at 1 Jan 2019

80,000

Cash

10,000

Account Payable

125,000

Account Receivable

170,000

Salaries expense

62,500

Electricity Expense

25,250

Telephone expense

45,000

Insurance expense

29,750

Loan due (December 2029)

15,000

Retained earnings at 1 Jan 2019

65,000

Common stock, $1

235,000

Unearned Revenues

40,000

Dividend paid

12,500

The following additional information is also available:

  1. The rent prepayment covers three years from July 1, 2019
  2. Employee salaries of $1,500 are owed for the last three days of the year
  3. The balance in Supplies after a physical count reveals $7,000of supplies on hand on December 31, 2019
  4. Plant and equipment has a useful life of 10 years with a salvage value of $20,000
  5. Building has a useful life of 50 years with no salvage value
  6. Unearned Revenue tickets show that $14,000 of the trial balance amount has been earned by December 31, 2019
  7. Closing inventory after a physical count amounted to $87,500

Required: Prepare for Flamingo Ltd.

  1. The journal entries required for the additional information
  2. The adjusted trial balance (in good form)
  3. The income statement for the year ended
  4. The statement of retained earnings
  5. The balance sheet as at the year end

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