Intelligent Toys, Inc ("ITI) is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. The trial balance of ITI as at 28 February 2021 is presented as follows: Intelligent Toys, Inc Trial Balance As at 28 February 2021 Account No. Account Title Debit Credit (8) (5) 201 Accounts Payable 420,000 112 Accounts Receivable 675,000 152 Accumulated Depreciation - Building 745,200 154 Accumulated Depreciation - Equipment 570,000 156 Accumulated Depreciation - Motor Vehicle 664,668 113 Allowance for Doubtful Accounts 20,250 151 Building 9,720,000 101 Cash 1,001,520 291 Dividends Payable 120,000 153 Equipment 990,000 115 Interest Receivable 144,000 140 Long-term Investment 750,000 121 Merchandise Inventory 975,000 155 Motor Vehicle 832,500 114 Notes Receivable 2,700,000 131 Prepaid Insurance 18,000 320 Retained Earnings 2,077.212 241 Salaries Payable 105.300 311 Share Capital - Ordinary $1 par value, 10,000,000 shares authorized, 6,000,000 shares issued and 5,977,500 shares outstanding 6,000,000 312 Share Capital - Preference 5%, $100 par value, noncumulative, 100,000 shares authorized, 60,000 shares issued and outstanding 6,000,000 313 Share Premium - Ordinary 840,000 314 Share Premium - Preference 300,000 315 Share Premium - Treasury 9,000 132 Supplies 9,360 330 Treasury Shares (22,500 shares) 56,250 17,871,630 17,871,630 The following activities took place in March: Mar. 1(a) Purchased children laptop toys from Esorbma Limited, $95,000, terms 1/10, n/30, FOB shipping point. (b)The responsible party paid the freight charges of $500. The goods were collected by the shipping company on 1 March and arrived at ITI's warehouse on 4 March. 1(c) Sold 22,500 Treasury shares at $2 each. 1(d) Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to note (c) of additional information.) 1(e) Sold remote control helicopters valued at $297,000 to TnecNiv Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $600. The goods were shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March. 2 A 10% share dividend was declared when the market value per share was $2.1. 3 Cash is received from TnecNiv Limited for the remote-control helicopters shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March 4 Sold kids ride on cars to Vinga Limited, $140,000, terms n/30, FOB shipping point, 2% trade discount. The appropriate party paid freight charges of $400. The goods were shipped on 4 March and arrived at the warehouse of Vinga Limited on 6 March 5 The management determined that the amount due from a customer, MYTOM Limited, $50,000 is uncollectible as the company has closed down. 6 Purchased supplies of $4,200 on account from Jimmy Printing and Stationery Limited. 7(a) Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus. 7(b) Received credit memorandum of $1,700 from Esorbma Limited for goods purchased in March 8 Granted Vinga Limited an allowance of $1,000 (original price) due to discrepancy in the color of the ride on cars. 9(a) Sold flying disc and toy swings to Action Limited, list price of $120,000 with a 20% trade discount, n/20, FOB shipping point. The responsible party paid 2 freight-charges of $800. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March Mar. %(6) Paid Esorbma Limited for the children laptop toys bought on 1 March and the amount of $230,000 on account for the purchase on 27 February. Purchases terms with Esorbma Limited in February was 2/10, n/30, FOB shipping point 10 Paid $162,000 for salary up to 9th March (Tuesday). All employees work a five-day week and are paid every four weeks on the following Wednesday, based on the number of days they have worked in the last four weeks. Employees are entitled to full pay on public holidays but not on Saturday and Sunday. The employees receive a total salary of $40,500 for a five-day work week. 12 Received payments from Vinga Limited, for the March sales. 13 Acquired $150,000 toy musical instruments by signing a 90-day, 5% notes payable. 16 Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $200,000. The company has a long-term relationship with Queenie, and agreed to accept a 12%, 45-day notes from the customer to settle the outstanding balance. 17 Share dividends were distributed. Shareholders on the register of the company on 6 March 2021 are entitled to receive the dividend shares. 21 Paid all dividends declared previously. 25 Received from Tom Limited, $180,000, as the prepayment for the leasing of part of the warehouse for one year from 1 April 2021 to 31 March 2022. 27 Received inflatable castle of $40,000 consignment goods returned from Consignee Trading Limited. The goods are delivered to Consignee Trading Limited for consignment purpose in February 2021. 28 Purchased $23,000 play mats from Millan Company, FOB Destination, terms 1/10, n/45. The shipping document showed that the goods were received on 3rd April 2021. 29 A cash dividend was declared for preference shares and a cash dividend of $0.03 per share was declared for ordinary shares. The dividends will be paid in April. 30 Received a check of $16,000 from the liquidator of YOT Limited. YOT Limited was closed down in December 2020 and the managing director of ITI authorized to write off $45,000, being the full amount outstanding in the accounts of YOT Limited, as of then. 3 The following additional information is available on 31 March 2021: (a) Electricity incurred for the month amounted to $7,000. (b) The employees receive a total salary of $40,500 for a five-day work week. All employees worked for the whole month of March. (c) (1)Building, (ii) equipment and (iii) motor vehicles are recorded at historical cost and their estimated useful lives are 50 years, 5 years and 5 years respectively. No residual value is expected for the building. The building was acquired on 1 May 2017. The company uses straight-line method for all buildings. All the equipment and motor vehicles are acquired on 1 January 2018. The company uses unit of activity method to depreciate equipment and the double-declining balance method to depreciate all motor vehicles. The company expects that the salvage value of the equipment and motor vehicles is 10% of the purchase cost. The equipment is for packing and the total amount of packing for 5 years are estimated to be 594,000 units. The total packing in March amounted to 9,800 units. Annual depreciation is calculated for each year from 1 January to 31 December, monthly depreciation is equal to (annual depreciation / 12). (d) Physical count showed that $4,000 of supplies and $1,186,000 of merchandise inventory remained on hand at 31 March 2021. (e) The bank statement balance is $1,000 greater than the cash account balance. This is relating to an unpresented cheque of the dividends paid on 21 March 2021. (f) The prepaid insurance was paid in last December covering a 12-month general insurance from January to December, 2021. (g) Allowance for bad debt is estimated based on 10% of the closing accounts receivable balance due to dramatical down turn of the economy. (h) Recognize interest expense for the month. (i) Recognize interest revenue for the month. Requirement 1 (128 points) 1 point for each item Input "0" if no entry is needed! *With more than one debit entry or more than one credit entry, input the entries with smaller Account No. first. Date Dr/Cr Account No. Amounts Mar 1 (a) Dr Item 1 Item 2 Cr Item 3 Item 4 Mar 1 (b) Dr Items Item 6 Cr Item 7 Item 8 *Mar 1 (c) Dr Item 9 Item 10 Dr Iteml] Item 12 Dr Item 13 Item 14 Cr Item 15 Item 16 *Mar 1 (d) Dr Long Term Investment Item 17 Item 18 Dr Item 19 Item 20 Dr Item21 Item 22 Cr Item23 Item 24 Cr Item25 Item 26 Cr Item27 Item 28 Cr Item29 Item 30 Mar 1 (e) Dr Item 31 Item 32 Cr Item33 Item 34 "Mar 2 Dr Item35 Item 36 Cr Item37 Item 38 Cr Item 39 Item 40 Mar 3 Dr Item 41 Item 42 Cr Item43 Item 44 Mar 4 Dr Item45 Item 46 Cr Item47 Item 48 Mar 5 Dr Item49 Item SO Cr Item51 Item 52 Mar 6 Dr Item53 Item 54 Cr Item55 Item 56 Mar 7 (a) Dr ItemS7 Item 58 Cr Item59 Item 60 Mar 7 (b) Dr Itemol Item 62 Cr Item63 Item 64 7 Requirement 1 (cont'd) Date Mar 8 Dr Cr Dr Account No. Item65 Cr Item67 Item69 Amount $ Item 66 Item 68 Item 70 Item 72 Item 74 Mar 9 (a) Dr Cr *Mar 9(b) Dr Cr Cr Item 71 Item 73 Item 75 Item 77 Item 76 Item 78 *Mar 10 Dr Item 79 Dr Cr Item81 Item83 Item85 Mar 12 Dr Item 80 Item 82 Item 84 Item 86 Item 88 Item 90 Item 92 Cr Mar 13 Dr Cr Item87 Item 89 Item91 Mar 16 Dr Item 94 Item93 Item 95 Cr Item 96 Item 98 Mar 17 Dr Cr Item 100 Mar 21 Dr Item 102 Cr Dr Item97 Item 99 Item 101 Item 103 Item 105 Item 107 Item 109 Item 104 Item 106 Mar 25 Cr Mar 27 Dr Item 108 Item 110 Item 112 Cr Iteml11 Mar 28 Dr Cr Mar 29 Dr Item113 Item115 Iteml17 Item119 Item 121 Item123 Item 114 Item 116 Item 118 Item 120 Item 122 Item 124 Cr Mar 30 Dr Cr Dr Cash Cr Item 125 Item 127 Item 126 Item 128 8 Requirement 2 (88 points) 2 points for each item Adjusting entries Date Dr/Cr Account No. Amount $ (a) Dr Item 129 Item 130 Cr Item 131 Item 132 (b) Dr Item133 Item 134 Cr Item 135 Item 136 (c)(0) Dr Item137 Item 138 Cr Item 139 Item 140 (c)(ii) Dr Item 141 Item 142 Cr Item 143 Item 144 (c)(iii) Dr Item 145 Item 146 Cr Item 147 Item 148 Dr Item 149 Item 150 Cr Item151 Item 152 (e) Dr Item 153 Item 154 Cr Item 155 Item 156 (1) Dr Item 157 Item 158 Cr Item 159 Item 160 Dr Item161 Item 162 Cr Item 163 Item 164 (h) Dr Item 165 Item 166 Cr Item 167 Item 168 (i) Dr Item 169 Item 170 Cr Item171 Item 172 9 Dr $ Cr S 613 Requirement 3 (106 points) 2 points for each item Adjusted Trial Balance as at 31 March 2021 Account No 201 Accounts Payable 112 Accounts Receivable 152 Accumulated Depreciation - Building 154 Accumulated Depreciation - Equipment 156 Accumulated Depreciation - Motor vehicle 113 Allowance for Doubtful Accounts 611 Bad Debt Expense ISI Building 101 Cash 711 Depreciation Expense - Building 712 Depreciation Expense - Equipment 713 Depreciation Expense - Motor Vehicle 291 Dividends Payable 153 Equipment 514 Freight-in 612 Freight-out Fuel Expense 820 Gain on Disposal 615 Insurance Expense 631 Interest Expense 221 Interest Payable 115 Interest Receivable 415 Interest Revenue 150 Land 140 Long-term Investment 620 Loss on Disposal 121 Merchandise Inventory 630 Miscellaneous Expense 155 Motor Vehicle 231 Notes Payable 114 Notes Receivable 316 Ordinary Share Dividends Distributable 131 Prepaid Insurance 513 Purchase Discounts 512 Purchase Returns and Allowances 511 Purchases 320 Retained Eamings 616 Salaries Expense 241 Salaries Payable 411 Sales Returns and Allowances 410 Sales Revenue 311 Share Capital - Ordinary 312 Share Capital - Preference 313 Share Premium - Ordinary 314 Share Premium - Preference 315 Share Premium - Treasury 132 Supplies 618 Supplies Expense 330 Treasury Shares 281 Unearned Rent Revenue 619 Utilities Expense Item 173 Item 174 Item 175 Item 176 Item 177 Item 178 Item 179 Item 180 Item 181 Item 182 Item 183 Item 184 Item 185 Item 186 Item 187 Item 188 Item 189 Item 190 Item 191 Item 192 Item 193 Item 194 Item 195 Item 196 Item 197 Item 198 Item 199 Item 200 Item 201 Item 202 Item 203 Item 204 Item 205 Item 206 Item 207 Item 208 Item 209 Item 210 Item 211 Item 212 Item 213 Item 214 Item 215 Item 216 Item 217 Item 218 Item 219 Item 220 Item 221 Item 222 Item 223 Item 224 Item 225 10 Requirement 4 (78 points) 5 points for each item except Item 234 Intelligent Toys, Inc. Income Statement For the month ended 31 March 2021 f Net Sales Item 226 Cost of goods purchased Item 227 Cost of goods available for sale Item 228 Cost of Goods Sold Gross Profit Item 229 Item 230 Total operation expense Item 231 Operating Profit Item 232 Net Income Item 233 11 Intelligent Toys, Inc. Retained Earnings Statement For the month ended 31 March 2021 Ending retained Earnings (3 points) Item 234 12 Intelligent Toys, Inc. Statement of Financial Position as at 31 March 2021 Property, Plant and Equipment Current Liabilities Item 239 Sub-total Long Term Investments Current Assets Item 235 Item 236 Sub-total Equity Sub-total Total Assets Item 237 Item 238 Sub-total Total Liabilities & Equity Item 240 Item 241 13 Instructions (The following is the procedures of the accounting cycle after analyzing the source documents for transactions taken place) (a) Enter the March 1 balances in the ledger accounts. (for your own reference) (b) Journalize the March transactions. The alternative treatment in Slide 18 of Lecture 4 powerpoints is not adopted by ITI. Use the accounts provided in the chart of accounts on page 14. c) Post to the ledger accounts. (for your own reference) (d) Prepare a trial balance at 31 March 2021. (for your own reference) (e) Journalize and post adjusting entries. (posting is for your own reference) (f) Prepare an adjusted trial balance. (g) Prepare an income statement and a retained earnings statement for March and a statement of financial position as at 31 March 2021. Part A (100 marks, 400 points) Requirements for submission (1) Input the Journal Entries required in part (b) with the Account Number ("Account No") and Amount into blackboard. Please input the items required as shown in page 7 & 8. Please refer to the chart of accounts on page 14. (32 marks) (2) Input the Journal Entries required in part (e) with the Account No and Amount into blackboard. Please input the items required as shown in page 9. (22 marks) (3) Input the balance of each account of the trial balance required in part (f) into blackboard. Please input the items required as shown in page 10. (26.5 marks) (4) Input the figures of part (g) including the income statement and retained earnings statement for September and statement of financial position as at March 31 into blackboard. Please input the items required as shown in page 11, 12 &13.(19.5 marks) Intelligent Toys, Inc ("ITI) is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. The trial balance of ITI as at 28 February 2021 is presented as follows: Intelligent Toys, Inc Trial Balance As at 28 February 2021 Account No. Account Title Debit Credit (8) (5) 201 Accounts Payable 420,000 112 Accounts Receivable 675,000 152 Accumulated Depreciation - Building 745,200 154 Accumulated Depreciation - Equipment 570,000 156 Accumulated Depreciation - Motor Vehicle 664,668 113 Allowance for Doubtful Accounts 20,250 151 Building 9,720,000 101 Cash 1,001,520 291 Dividends Payable 120,000 153 Equipment 990,000 115 Interest Receivable 144,000 140 Long-term Investment 750,000 121 Merchandise Inventory 975,000 155 Motor Vehicle 832,500 114 Notes Receivable 2,700,000 131 Prepaid Insurance 18,000 320 Retained Earnings 2,077.212 241 Salaries Payable 105.300 311 Share Capital - Ordinary $1 par value, 10,000,000 shares authorized, 6,000,000 shares issued and 5,977,500 shares outstanding 6,000,000 312 Share Capital - Preference 5%, $100 par value, noncumulative, 100,000 shares authorized, 60,000 shares issued and outstanding 6,000,000 313 Share Premium - Ordinary 840,000 314 Share Premium - Preference 300,000 315 Share Premium - Treasury 9,000 132 Supplies 9,360 330 Treasury Shares (22,500 shares) 56,250 17,871,630 17,871,630 The following activities took place in March: Mar. 1(a) Purchased children laptop toys from Esorbma Limited, $95,000, terms 1/10, n/30, FOB shipping point. (b)The responsible party paid the freight charges of $500. The goods were collected by the shipping company on 1 March and arrived at ITI's warehouse on 4 March. 1(c) Sold 22,500 Treasury shares at $2 each. 1(d) Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to note (c) of additional information.) 1(e) Sold remote control helicopters valued at $297,000 to TnecNiv Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $600. The goods were shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March. 2 A 10% share dividend was declared when the market value per share was $2.1. 3 Cash is received from TnecNiv Limited for the remote-control helicopters shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March 4 Sold kids ride on cars to Vinga Limited, $140,000, terms n/30, FOB shipping point, 2% trade discount. The appropriate party paid freight charges of $400. The goods were shipped on 4 March and arrived at the warehouse of Vinga Limited on 6 March 5 The management determined that the amount due from a customer, MYTOM Limited, $50,000 is uncollectible as the company has closed down. 6 Purchased supplies of $4,200 on account from Jimmy Printing and Stationery Limited. 7(a) Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus. 7(b) Received credit memorandum of $1,700 from Esorbma Limited for goods purchased in March 8 Granted Vinga Limited an allowance of $1,000 (original price) due to discrepancy in the color of the ride on cars. 9(a) Sold flying disc and toy swings to Action Limited, list price of $120,000 with a 20% trade discount, n/20, FOB shipping point. The responsible party paid 2 freight-charges of $800. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March Mar. %(6) Paid Esorbma Limited for the children laptop toys bought on 1 March and the amount of $230,000 on account for the purchase on 27 February. Purchases terms with Esorbma Limited in February was 2/10, n/30, FOB shipping point 10 Paid $162,000 for salary up to 9th March (Tuesday). All employees work a five-day week and are paid every four weeks on the following Wednesday, based on the number of days they have worked in the last four weeks. Employees are entitled to full pay on public holidays but not on Saturday and Sunday. The employees receive a total salary of $40,500 for a five-day work week. 12 Received payments from Vinga Limited, for the March sales. 13 Acquired $150,000 toy musical instruments by signing a 90-day, 5% notes payable. 16 Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $200,000. The company has a long-term relationship with Queenie, and agreed to accept a 12%, 45-day notes from the customer to settle the outstanding balance. 17 Share dividends were distributed. Shareholders on the register of the company on 6 March 2021 are entitled to receive the dividend shares. 21 Paid all dividends declared previously. 25 Received from Tom Limited, $180,000, as the prepayment for the leasing of part of the warehouse for one year from 1 April 2021 to 31 March 2022. 27 Received inflatable castle of $40,000 consignment goods returned from Consignee Trading Limited. The goods are delivered to Consignee Trading Limited for consignment purpose in February 2021. 28 Purchased $23,000 play mats from Millan Company, FOB Destination, terms 1/10, n/45. The shipping document showed that the goods were received on 3rd April 2021. 29 A cash dividend was declared for preference shares and a cash dividend of $0.03 per share was declared for ordinary shares. The dividends will be paid in April. 30 Received a check of $16,000 from the liquidator of YOT Limited. YOT Limited was closed down in December 2020 and the managing director of ITI authorized to write off $45,000, being the full amount outstanding in the accounts of YOT Limited, as of then. 3 The following additional information is available on 31 March 2021: (a) Electricity incurred for the month amounted to $7,000. (b) The employees receive a total salary of $40,500 for a five-day work week. All employees worked for the whole month of March. (c) (1)Building, (ii) equipment and (iii) motor vehicles are recorded at historical cost and their estimated useful lives are 50 years, 5 years and 5 years respectively. No residual value is expected for the building. The building was acquired on 1 May 2017. The company uses straight-line method for all buildings. All the equipment and motor vehicles are acquired on 1 January 2018. The company uses unit of activity method to depreciate equipment and the double-declining balance method to depreciate all motor vehicles. The company expects that the salvage value of the equipment and motor vehicles is 10% of the purchase cost. The equipment is for packing and the total amount of packing for 5 years are estimated to be 594,000 units. The total packing in March amounted to 9,800 units. Annual depreciation is calculated for each year from 1 January to 31 December, monthly depreciation is equal to (annual depreciation / 12). (d) Physical count showed that $4,000 of supplies and $1,186,000 of merchandise inventory remained on hand at 31 March 2021. (e) The bank statement balance is $1,000 greater than the cash account balance. This is relating to an unpresented cheque of the dividends paid on 21 March 2021. (f) The prepaid insurance was paid in last December covering a 12-month general insurance from January to December, 2021. (g) Allowance for bad debt is estimated based on 10% of the closing accounts receivable balance due to dramatical down turn of the economy. (h) Recognize interest expense for the month. (i) Recognize interest revenue for the month. Requirement 1 (128 points) 1 point for each item Input "0" if no entry is needed! *With more than one debit entry or more than one credit entry, input the entries with smaller Account No. first. Date Dr/Cr Account No. Amounts Mar 1 (a) Dr Item 1 Item 2 Cr Item 3 Item 4 Mar 1 (b) Dr Items Item 6 Cr Item 7 Item 8 *Mar 1 (c) Dr Item 9 Item 10 Dr Iteml] Item 12 Dr Item 13 Item 14 Cr Item 15 Item 16 *Mar 1 (d) Dr Long Term Investment Item 17 Item 18 Dr Item 19 Item 20 Dr Item21 Item 22 Cr Item23 Item 24 Cr Item25 Item 26 Cr Item27 Item 28 Cr Item29 Item 30 Mar 1 (e) Dr Item 31 Item 32 Cr Item33 Item 34 "Mar 2 Dr Item35 Item 36 Cr Item37 Item 38 Cr Item 39 Item 40 Mar 3 Dr Item 41 Item 42 Cr Item43 Item 44 Mar 4 Dr Item45 Item 46 Cr Item47 Item 48 Mar 5 Dr Item49 Item SO Cr Item51 Item 52 Mar 6 Dr Item53 Item 54 Cr Item55 Item 56 Mar 7 (a) Dr ItemS7 Item 58 Cr Item59 Item 60 Mar 7 (b) Dr Itemol Item 62 Cr Item63 Item 64 7 Requirement 1 (cont'd) Date Mar 8 Dr Cr Dr Account No. Item65 Cr Item67 Item69 Amount $ Item 66 Item 68 Item 70 Item 72 Item 74 Mar 9 (a) Dr Cr *Mar 9(b) Dr Cr Cr Item 71 Item 73 Item 75 Item 77 Item 76 Item 78 *Mar 10 Dr Item 79 Dr Cr Item81 Item83 Item85 Mar 12 Dr Item 80 Item 82 Item 84 Item 86 Item 88 Item 90 Item 92 Cr Mar 13 Dr Cr Item87 Item 89 Item91 Mar 16 Dr Item 94 Item93 Item 95 Cr Item 96 Item 98 Mar 17 Dr Cr Item 100 Mar 21 Dr Item 102 Cr Dr Item97 Item 99 Item 101 Item 103 Item 105 Item 107 Item 109 Item 104 Item 106 Mar 25 Cr Mar 27 Dr Item 108 Item 110 Item 112 Cr Iteml11 Mar 28 Dr Cr Mar 29 Dr Item113 Item115 Iteml17 Item119 Item 121 Item123 Item 114 Item 116 Item 118 Item 120 Item 122 Item 124 Cr Mar 30 Dr Cr Dr Cash Cr Item 125 Item 127 Item 126 Item 128 8 Requirement 2 (88 points) 2 points for each item Adjusting entries Date Dr/Cr Account No. Amount $ (a) Dr Item 129 Item 130 Cr Item 131 Item 132 (b) Dr Item133 Item 134 Cr Item 135 Item 136 (c)(0) Dr Item137 Item 138 Cr Item 139 Item 140 (c)(ii) Dr Item 141 Item 142 Cr Item 143 Item 144 (c)(iii) Dr Item 145 Item 146 Cr Item 147 Item 148 Dr Item 149 Item 150 Cr Item151 Item 152 (e) Dr Item 153 Item 154 Cr Item 155 Item 156 (1) Dr Item 157 Item 158 Cr Item 159 Item 160 Dr Item161 Item 162 Cr Item 163 Item 164 (h) Dr Item 165 Item 166 Cr Item 167 Item 168 (i) Dr Item 169 Item 170 Cr Item171 Item 172 9 Dr $ Cr S 613 Requirement 3 (106 points) 2 points for each item Adjusted Trial Balance as at 31 March 2021 Account No 201 Accounts Payable 112 Accounts Receivable 152 Accumulated Depreciation - Building 154 Accumulated Depreciation - Equipment 156 Accumulated Depreciation - Motor vehicle 113 Allowance for Doubtful Accounts 611 Bad Debt Expense ISI Building 101 Cash 711 Depreciation Expense - Building 712 Depreciation Expense - Equipment 713 Depreciation Expense - Motor Vehicle 291 Dividends Payable 153 Equipment 514 Freight-in 612 Freight-out Fuel Expense 820 Gain on Disposal 615 Insurance Expense 631 Interest Expense 221 Interest Payable 115 Interest Receivable 415 Interest Revenue 150 Land 140 Long-term Investment 620 Loss on Disposal 121 Merchandise Inventory 630 Miscellaneous Expense 155 Motor Vehicle 231 Notes Payable 114 Notes Receivable 316 Ordinary Share Dividends Distributable 131 Prepaid Insurance 513 Purchase Discounts 512 Purchase Returns and Allowances 511 Purchases 320 Retained Eamings 616 Salaries Expense 241 Salaries Payable 411 Sales Returns and Allowances 410 Sales Revenue 311 Share Capital - Ordinary 312 Share Capital - Preference 313 Share Premium - Ordinary 314 Share Premium - Preference 315 Share Premium - Treasury 132 Supplies 618 Supplies Expense 330 Treasury Shares 281 Unearned Rent Revenue 619 Utilities Expense Item 173 Item 174 Item 175 Item 176 Item 177 Item 178 Item 179 Item 180 Item 181 Item 182 Item 183 Item 184 Item 185 Item 186 Item 187 Item 188 Item 189 Item 190 Item 191 Item 192 Item 193 Item 194 Item 195 Item 196 Item 197 Item 198 Item 199 Item 200 Item 201 Item 202 Item 203 Item 204 Item 205 Item 206 Item 207 Item 208 Item 209 Item 210 Item 211 Item 212 Item 213 Item 214 Item 215 Item 216 Item 217 Item 218 Item 219 Item 220 Item 221 Item 222 Item 223 Item 224 Item 225 10 Requirement 4 (78 points) 5 points for each item except Item 234 Intelligent Toys, Inc. Income Statement For the month ended 31 March 2021 f Net Sales Item 226 Cost of goods purchased Item 227 Cost of goods available for sale Item 228 Cost of Goods Sold Gross Profit Item 229 Item 230 Total operation expense Item 231 Operating Profit Item 232 Net Income Item 233 11 Intelligent Toys, Inc. Retained Earnings Statement For the month ended 31 March 2021 Ending retained Earnings (3 points) Item 234 12 Intelligent Toys, Inc. Statement of Financial Position as at 31 March 2021 Property, Plant and Equipment Current Liabilities Item 239 Sub-total Long Term Investments Current Assets Item 235 Item 236 Sub-total Equity Sub-total Total Assets Item 237 Item 238 Sub-total Total Liabilities & Equity Item 240 Item 241 13 Instructions (The following is the procedures of the accounting cycle after analyzing the source documents for transactions taken place) (a) Enter the March 1 balances in the ledger accounts. (for your own reference) (b) Journalize the March transactions. The alternative treatment in Slide 18 of Lecture 4 powerpoints is not adopted by ITI. Use the accounts provided in the chart of accounts on page 14. c) Post to the ledger accounts. (for your own reference) (d) Prepare a trial balance at 31 March 2021. (for your own reference) (e) Journalize and post adjusting entries. (posting is for your own reference) (f) Prepare an adjusted trial balance. (g) Prepare an income statement and a retained earnings statement for March and a statement of financial position as at 31 March 2021. Part A (100 marks, 400 points) Requirements for submission (1) Input the Journal Entries required in part (b) with the Account Number ("Account No") and Amount into blackboard. Please input the items required as shown in page 7 & 8. Please refer to the chart of accounts on page 14. (32 marks) (2) Input the Journal Entries required in part (e) with the Account No and Amount into blackboard. Please input the items required as shown in page 9. (22 marks) (3) Input the balance of each account of the trial balance required in part (f) into blackboard. Please input the items required as shown in page 10. (26.5 marks) (4) Input the figures of part (g) including the income statement and retained earnings statement for September and statement of financial position as at March 31 into blackboard. Please input the items required as shown in page 11, 12 &13.(19.5 marks)
