Instructions

Refer to 1-3.png and statement of comprehensive income.png. using that information, Please outline the accounts used to pre pare a Statement of Retained Earnings for the year ended December 31, 2019 OR for the year ended December 31, 2020 (your choice)

Notes

• you may or may not need all of the images provided.
• Tax Rates are ignored for this problem.
• Retained Earnings beginning January 1, 2019 are NIL

1-3.png

Trial Balance Unadjusted Trial Balance Adjusted At December 31, 2019 At December 31, 2020 Adjustments Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash & Equivalents 98,641 1,191,277 2,457,500 3,660,699 11,922 11,922 FV-NI Investments 400,650 28,600 429,250 429,250 Accounts Receivable - Trade 2,069,111 1,908,886 1,908,886 1,908,886 Accounts Receivable - Projects 1,155,000 1,155,000 1,155,000 Other Accounts Receivable 3,646,372 2,357,036 1,289,336 1,289,336 nterest Receivable 583 583 583 Allowance for Doubtful Accounts 63,254 63,254 12,036 23,696 74,914 74,914 Inventory 474,789 506,900 11,520 495,380 495,380 Inventory on Consignment 141,400 124,600 16,800 16,800 Prepaid Insurance 120,000 240,000 40,000 200,000 200,000 FV-OCI Investments 106,000 6,500 112,500 Contract Asset/Liability 157,699 5,498,057 3,500,000 2,155,756 2,155,756 Land 320,000 320,000 320,000 320,000 Building 3,058,199 3,058,199 3,188 7,188 3,054,199 3,054,199 Building - Accumulated Depreciation 78,721 78,721 7,188 60,887 132,420 132,420 Equipment 389,105 406,905 406,905 406,905 Equipment - Accumulated Depreciation 38,292 38,292 76,455 114,747 114,747 Intangible Assets 161,750 161,750 161,750 Intangible Assets - Accumulated Amortization 24,342 24,342 24,342 Goodwill 675,000 675,000 73,000 602,000 602,000 Accumulated Impairment Loss - Goodwill Accounts Payable 525,000 1,077,205 1,077,205 1,077,205 Deferred Tax LiabilityTrial Balance Unadjusted Trial Balance Adjusted At December 31, 2019 At December 31, 2020 Adjustments Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit HST Payable 89,100 159,800 159,800 159,800 Interest Payable 100,000 110,625 110,625 110,625 Dividends Payable 175,000 175,000 175,000 Income Tax Payable Wages Payable 45,000 10,906 10,906 10,906 Notes Payable 250,000 250,000 250,000 Bank Loan 2,500,000 4,000,000 4,000,000 4,000,000 Common Stock 1,908,199 1,908,199 1,908,199 1,908,199 Retained Earnings 727,144 1,857,279 175,000 6,500 1,688,779 1,688,779 Revaluation Surplus - OC 3,188 3,188 3,188 Revenue from Long-term Contract (2019) 3,206,449 Revenue from Long-term Contract - Project #1 3,382,107 3,382,107 3,382,107 Revenue from Long-term Contract - Project #2 2,115,950 2,115,950 2,115,950 Revenue from Consignments 159,100 159,100 159,100 Sales Revenue - Equipment 5,855,690 6,952,200 6,952,200 6,952,200 Dividend Income 13,500 13,500 13,500 Interest Income 350 583 583 583 Gain/ (Loss) on sale of truck 16,150 16,150 16,150 Investment Income or Loss 19,150 28,600 9,450 9,450 Unrealized Gain or Loss - OCI 6,500 6,500 Cost of Goods Sold 3,717,400 4,413,200 136,120 4,549,320 4,549,320 Construction Expenses (2019) 2,360,100 Construction Expenses - Project #1 2,074,500 2,074,500 2,074,500Trial Balance Unadjusted Trial Balance Adjusted At December 31, 2019 At December 31, 2020 Adjustments Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Construction Expenses - Project #2 1,583,199 1,583,199 1,583,199 Loss on Impairment 73,000 73,000 73,000 Equipment Rental (other expenses) 525,000 874,998 374,998 374,998 Equipment Repairs (other expenses) 96,400 125,000 125,000 125,000 Wages 659,000 708,880 708,880 708,880 Payroll Tax Expense 82,375 88,610 88,610 88,610 Interest Expense 68,750 110,625 110,625 110,625 Utilities 52,000 48,000 48,000 48,000 Income tax expense Insurance Expense 160,000 120,000 40,000 160,000 160,000 Bad Debt Expense 23,056 23,696 23,696 696 Commission Expense 9,546 9,546 9,546 Advertising Expense 4,500 3,182 3,182 3,182 Administration Expenses 90,095 90,095 10,906 101,001 101,001 Amortization Expense (other expense) 24,342 24,342 24,342 Depreciation Expense (other expenses) 93,678 137,341 137,341 137,341 TOTALS $ 15,137,199 $15,137,199 |$ 16,398,449 | $16,398,449 $16,087,130 | $16,087,130 | $22,391,085 $22,391,085 $10,195,241 $12,649,040 | $ 12,195,844 | $ 9,742,045 Net Income (Loss) 0 0 2,453,799 2,453,799 TOTAL $12,649,040 $12,649,040 12,195,844 $12,195,844Aylmer Industries Inc. Statement of Comprehensive Income For the Year Ended December 31, 2020 2020 2019 Revenue Revenue from long-term contracts 5,498,057 3,206,449 Revenue from consignements 159,100 Sales revenue 6,952.200 5,855,690 other income 39,683 350 12.643,040 3,062.483 Cost of goods sold 4,549,320 3,717,400 Constuction Expenses 3,657,699 2.360,100 Loss on Impairment 73,000 Other Expenses 561,681 715,078 Wages 708,880 659,000 Payroll Tax 88,610 62,375 Interest Expense 110.625 68,750 Utilities 48.000 52,000 Insurance Expense 160,000 160,000 Bad Debt Expense 23,696 23,056 Commision Expense 9.546 Advertising Expense 3.182 4,500 Administration Expense 101,001 30,095 10.195.241 7,932,354 Loss before tax from continuing operations Income Tax Expense Net Income for the Year 2.453,793 Other Comprehensive Income Revalution Surplus 3.188 Total Comprehensive Income 2.456,987