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

Assignment Three (Deadline 6 November 2021. 23:58 input 241 items via Bb "Assessment Test")_20% of the course (400 points for 241 items accounted for 20%) No assessment for late submission! Please submit your answers three hours earlier than 6 November 2021, 23:58! Students are not allowed to share this document to others! 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 (S) (S) 201 Accounts Payable 420,000 112 Accounts Receivable 675,000 152 Accumulated Depreciation - Building 931,500 154 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 1.199,520 291 Dividends Payable 220,000 153 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 2.800,000 131 Prepaid Insurance 18,000 320 Retained Earnings 2,077.212 241 Salaries Payable 117,000 311 Share Capital - Ordinary S1 par value, 10,000,000 shares authorized 6,000,000 shares issued and .977.500 shares outstanding 6,000,000 312 Share Capital - Preference 5%. SI00 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 8,000 132 Supplies 8,360 330 Treasury Shares (22,500 shares) 56,250 18,168,630 18.168.630 1 The following activities took place in March: Mar. 1(a) Purchased children laptop toys from Esorbma Limited, S94,000, terms 1/10, 1/30, FOB shipping point. (b)The responsible party paid the freight charges of $300. 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 $2.1 cach. (assuming both trade date and settlement date is on 1 March, such treasury shares were owned by investors on 2 March when share dividend was declared) 1(d) Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair market value of the 10% shareholding was $3.102.000 as at 1 March. The purchase consideration included a $2,800,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, S140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at cost $120,000. The difference between the fair value of the long-term investment and the book value of the purchase consideration assets (including cash, notes receivable, interest receivable and motor vehicle) is treated as loss on disposal (for calculation of accumulated depreciation of motor vehicle details, refer to note (c) of the additional information on page 4.) Note: Book value of motor vehicle - Cost-accumulated depreciation. 1(e) Sold remote control helicopters valued at $311,000 to Tnec Niv Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $500. The goods were shipped on 1 March and arrived at the warchouse of Tnec Niv Limited on 3 March 2. A 10% share dividend was declared when the market value per share was $2.11. (this is treated as small dividend case) 3 Cash is received from Thee Niv Limited for the remote-control helicopters shipped on March and arrived at the warehouse of Tnec Niv Limited on 3 March 4 Sold kids ride on cars to Vinga Limited. S150,000, terms n/30, FOB shipping point, 3% trade discount. The appropriate party paid freight charges of $200. The goods were shipped on 4 March and arrived at the warchouse of Vinga Limited on 6 March 5 Received a statement from the liquidator of YOT Limited. The liquidator informed ITI that $12,000 will be paid to ITI at the end of March 2021 for the settlement of the S16,000 outstanding balance. YOT Limited was closed down in December 2020 and the managing director of ITI authorized to write off $16,000 on 31 December 2020, being the full amount outstanding in the Account Receivable - YOT Limited, 2 6 Purchased supplies of $3,000 on account from Jimmy Printing and Stationery Limited 7(a) Paid cash to acquired 30,000 shares of its own at $2.2 cach. ITI intends to keep the shares for several months for management bonus. The seller of the shares still entitles the share dividend declared on 2 March, the right of receiving the share dividend is not sold to ITL 7(b) Received credit memorandum of $1,800 from Esorbma Limited for goods purchased in March due to discrepancy in the color & Grunted Vinga Limited an allowance of 5970 (original price $1,000 - trade discount $30) 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 $140,000 with a 20% trade discount, w 20, FOB shipping point. The responsible party paid freight-charges of $500. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March Mar. 9(b) Paid Esorbma Limited for the children laptop toys bought on 1 March and the amount of S220,000 on account for the purchase on 27 February 2021 Purchases terms with Esorbea Limited in February was 2/10, 1/30, FOB shipping point. 10 Paid S180,000 for salary up to 9 March (Tuesday). All employees work a five-day week and are paid every four wecks 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 S45,000 for a five-day work week 12 Received payments from Vinga Limited, for the March sales 13 Acquired $160,000 packing equipment by signing a 90-day, 5% notes payable. ITI started to use the equipment in April. 16 Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $220,000. The company has a long-term Telationship 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 cash 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. a 3 27 Returned $40,000 consignment goods to Consignee Trading Limited. The goods are delivered by Consignee Trading Limited to ITI for consignment purpose in February 2021. 28 Purchased $25,000 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 $0.02 per share was declared for ordinary shares. The dividends will be paid in April 30 Received a check of $15,000 from the liquidator of YOT Limited. The liquidator issued a revised Statement to inform ITI that $15,000 is the finalized amount for the settlement of the S16,000 outstanding balance. The following additional information is available on 31 March 2021: (a) Electricity incurred for the month atunted to $8,000. (b) The employees receive a total salary of S45,000 for a five-day work week. All employees worked for the whole month of March () (1)Building. (i) equipment and (iii) motor chicles are recorded at historical cost and their estimated useful lives are 40 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 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 9.700 units. Annual depreciation is calculated for cach year from January to 31 December, monthly depreciation is equal to (annual depreciation / 12). (d) Physical count showed that $5,000 of supplies and $796,000 of merchandise inventory remained on hand at 31 March 2021. (The bank statement balance is S50 greater than the cash account balance. This is relating to the interest earned for the cash balance in the bank account for March () The prepaid insurance was paid in last December covering a 12-month general insurance from December 2020 to November, 2021. (g) Allowance for bad debt is estimated based on 10% of the closing accounts receivable balance due to dramatical down tum of the economy. (h) Recognize interest expense for the month. ) Recognize interest revenue for the month. 5 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 15 (e) 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) (1) Prepare an adjusted trial balance. (9) Prepare an income statement and a retained earnings statement for March and a statement of financial position as at 31 March 2021. Requirement 1 (128 points)1 point for each item Input 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 Dr C Amounts Mari (a) Item 2 Date Mar 1 (b) *Mar 1 (c) *Mar 1 (d) Mar 1(e) Dr Cr Dr Cr Dr Dr Dr Cr Dr Long Term Investment Dr Dr Cr Cr Cr Cr Dr Cr Dr Cr Cr Dr Cr Dr CE Dr Cr Dr Cr Dr Cr Dr Cr Account No. Item! Item 3 Items Item Item Item!! Item13 Item 15 Item 17 Item 19 Item21 Item23 Item25 Item27 Item29 Item31 Item33 Item35 Item37 Item 39 Item 41 Item 43 Item 45 Item47 Item49 Item51 Item53 Item55 Item 57 Item 59 Item! Item63 Item 4 Item 6 Item 8 Item 10 Item 12 Item 14 Item 16 Item 18 Item 20 Item 22 Item 24 Item 26 Item 28 Item 30 Item 32 Item 34 Item 36 Item 38 Item 40 tem 42 Item 44 Item 46 Item 48 Item 50 Item 52 Item 54 Item S6 Item 38 Item 60 Item 62 Item 64 *Mar 2 Mar 3 Mar 4 Mar 5 Mar 6 Mar 7(a) Mar 7(b) 8 Account No. Itemos Item67 Item69 Item 71 Item 73 Item 75 Item 77 Requirement contid) Date De Cr Mar 8 Dr Cr Mar 9 (a) Dr Cr "Mar 9(b) Dr Mar 10 Dr De Mar 12 De CE Mar 13 Dr Cr Mar 16 Dr CT Mar 17 De Cr Mar 21 Dr Mar 25 Dr CT Mar 27 Dr CE Mar 28 Dr CE Mar 29 Dr Cr Mar 30 Dr CE Dr Cash CE Item79 Item 1 Item83 Items Item87 Item89 Item91 Item93 Items Item 97 Item99 Item101 Item 103 Item 105 Item107 Item109 Item111 Item 13 Item 15 Iteml17 Item119 Item121 Item123 Item125 Item127 Amounts Item 66 Item 68 Item 70 Item 72 Item 74 Item 76 Item 78 Item 80 Item 82 Item 84 Item 86 Item 88 Item 90 Item 92 Item 94 Item 96 Item 98 Item 100 Item 102 Item 104 Item 106 Item 108 Item 110 Item 112 Item 114 Item 116 Item 118 Item 120 Item 122 Item 124 Item 126 Item 128 Requirement 2 (88 points) 2 points for each item Adjusting entries Date (a) Dr/Cr Account No. Amounts Dr Item 129 Item 130 Cr Item131 Item 132 (b) Dr Item 133 Item 134 Cr Item 135 Item 136 (c)(i) 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 (d) Dr Item149 Item 150 Cr Item 151 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 Item 161 Item 162 Cr Item 163 Item 164 (h) Dr Item 165 Item 166 Cr Item 167 Item 168 (1) Dr Item 169 Item 170 Cr Item 171 Item 172 10 Drs CS 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 Allowance for Doubtfial Accounts 611 Bad Det Expense 151 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 613 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 Merchandise Inventory 630 Miscellaneous Expense 155 Motor Vehicle 231 Notes Payable Notes Receivable 316 Ordinary Shark Dividends Distributable 131 Prepaid Insurance 513 Purchase Discounts 512 Purchase Returns and Allowances 511 Purchases 320 Retained Earnings 616 Salaries Experts 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 Express 330 Treasury Shares Unearned Rent Revenue 619 Utilities Expense Item 173 Item 174 In 175 Lem 176 Trem 177 Item 17% em 179 Item ID lem 1X1 Iuem 1X2 Item 13 Item 14 Irem IRS Item 16 Item 17 Item 1X Im INO Item 190 Item 191 Item 192 Item 193 em 194 Item 195 Item 196 Item 197 lucm 19 Item 199 Item 200 Item 201 Item 202 Tem 203 Item204 Im 20s Item 206 Item 207 Item 20% Item 200 Item 210 Item 211 Item 212 Hem 213 Tom 214 Item 215 Item 216 Item 217 Hem 218 Im 219 Trem 220 Item 221 Item 222 Item223 121 281 Item 224 Item 225 11 Requirement 4 (78 points, 5 points for each item except Item 234 Intelligent Toys, Inc. Income Statement For the month ended 31 March 2021 E 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 12 Intelligent Toys, Inc Retained Earnings Statement For the month ended 31 March 2021 f Ending retained Earnings (3 points) Item 234 13 Intelligent Toys, Inc. Statement of Financial Position as at 31 March 2021 Property. Plant and Equipment Current Liabilities Item 219 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 Luquity Item 240 Item 241 14 201 Account No 121 630 Chart of Accounts Account No Account Names Accounts Payable including utilities 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 151 Building 101 Cash 711 Depreciation Expense - Building 712 Depreciation Expense - Equipment 713 Depreciation Expense - Motor Vehicle 291 Dividends Payable 153 Equipment Freight-in 612 Freight-out 613 Fuel Expense 820 Gain on Disposal 615 Insurance Expense Interest Expense 221 Interest Payable 115 Interest Receivable Interest Revenue 150 140 Long-term Investment 620 Loss on Disposal 155 231 114 316 131 513 512 511 320 241 616 410 411 311 312 313 314 315 132 618 330 281 619 Account Names Merchandise Inventory Miscellaneous Expense Motor Vehide Notes Payable Notes Receivable Ordinary Share Dividends Distributable Prepaid Insurance Purchase Discounts Purchase Returns and Allowances Purchases Retained Earnings Salaries Payable Salaries Expense Sales Revenue Sales Returns and Allowances Share Capital - Ordinary Share Capital - Preference Share Premium - Ordinary Share Premium - Preference Share Premium - Treasury Supplies Supplies Expense Treasury Shares Unearned Rent Revenue Utilities Expense 514 631 415 Land 15 Assignment Three (Deadline 6 November 2021. 23:58 input 241 items via Bb "Assessment Test")_20% of the course (400 points for 241 items accounted for 20%) No assessment for late submission! Please submit your answers three hours earlier than 6 November 2021, 23:58! Students are not allowed to share this document to others! 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 (S) (S) 201 Accounts Payable 420,000 112 Accounts Receivable 675,000 152 Accumulated Depreciation - Building 931,500 154 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 1.199,520 291 Dividends Payable 220,000 153 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 2.800,000 131 Prepaid Insurance 18,000 320 Retained Earnings 2,077.212 241 Salaries Payable 117,000 311 Share Capital - Ordinary S1 par value, 10,000,000 shares authorized 6,000,000 shares issued and .977.500 shares outstanding 6,000,000 312 Share Capital - Preference 5%. SI00 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 8,000 132 Supplies 8,360 330 Treasury Shares (22,500 shares) 56,250 18,168,630 18.168.630 1 The following activities took place in March: Mar. 1(a) Purchased children laptop toys from Esorbma Limited, S94,000, terms 1/10, 1/30, FOB shipping point. (b)The responsible party paid the freight charges of $300. 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 $2.1 cach. (assuming both trade date and settlement date is on 1 March, such treasury shares were owned by investors on 2 March when share dividend was declared) 1(d) Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair market value of the 10% shareholding was $3.102.000 as at 1 March. The purchase consideration included a $2,800,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, S140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at cost $120,000. The difference between the fair value of the long-term investment and the book value of the purchase consideration assets (including cash, notes receivable, interest receivable and motor vehicle) is treated as loss on disposal (for calculation of accumulated depreciation of motor vehicle details, refer to note (c) of the additional information on page 4.) Note: Book value of motor vehicle - Cost-accumulated depreciation. 1(e) Sold remote control helicopters valued at $311,000 to Tnec Niv Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $500. The goods were shipped on 1 March and arrived at the warchouse of Tnec Niv Limited on 3 March 2. A 10% share dividend was declared when the market value per share was $2.11. (this is treated as small dividend case) 3 Cash is received from Thee Niv Limited for the remote-control helicopters shipped on March and arrived at the warehouse of Tnec Niv Limited on 3 March 4 Sold kids ride on cars to Vinga Limited. S150,000, terms n/30, FOB shipping point, 3% trade discount. The appropriate party paid freight charges of $200. The goods were shipped on 4 March and arrived at the warchouse of Vinga Limited on 6 March 5 Received a statement from the liquidator of YOT Limited. The liquidator informed ITI that $12,000 will be paid to ITI at the end of March 2021 for the settlement of the S16,000 outstanding balance. YOT Limited was closed down in December 2020 and the managing director of ITI authorized to write off $16,000 on 31 December 2020, being the full amount outstanding in the Account Receivable - YOT Limited, 2 6 Purchased supplies of $3,000 on account from Jimmy Printing and Stationery Limited 7(a) Paid cash to acquired 30,000 shares of its own at $2.2 cach. ITI intends to keep the shares for several months for management bonus. The seller of the shares still entitles the share dividend declared on 2 March, the right of receiving the share dividend is not sold to ITL 7(b) Received credit memorandum of $1,800 from Esorbma Limited for goods purchased in March due to discrepancy in the color & Grunted Vinga Limited an allowance of 5970 (original price $1,000 - trade discount $30) 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 $140,000 with a 20% trade discount, w 20, FOB shipping point. The responsible party paid freight-charges of $500. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March Mar. 9(b) Paid Esorbma Limited for the children laptop toys bought on 1 March and the amount of S220,000 on account for the purchase on 27 February 2021 Purchases terms with Esorbea Limited in February was 2/10, 1/30, FOB shipping point. 10 Paid S180,000 for salary up to 9 March (Tuesday). All employees work a five-day week and are paid every four wecks 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 S45,000 for a five-day work week 12 Received payments from Vinga Limited, for the March sales 13 Acquired $160,000 packing equipment by signing a 90-day, 5% notes payable. ITI started to use the equipment in April. 16 Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $220,000. The company has a long-term Telationship 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 cash 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. a 3 27 Returned $40,000 consignment goods to Consignee Trading Limited. The goods are delivered by Consignee Trading Limited to ITI for consignment purpose in February 2021. 28 Purchased $25,000 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 $0.02 per share was declared for ordinary shares. The dividends will be paid in April 30 Received a check of $15,000 from the liquidator of YOT Limited. The liquidator issued a revised Statement to inform ITI that $15,000 is the finalized amount for the settlement of the S16,000 outstanding balance. The following additional information is available on 31 March 2021: (a) Electricity incurred for the month atunted to $8,000. (b) The employees receive a total salary of S45,000 for a five-day work week. All employees worked for the whole month of March () (1)Building. (i) equipment and (iii) motor chicles are recorded at historical cost and their estimated useful lives are 40 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 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 9.700 units. Annual depreciation is calculated for cach year from January to 31 December, monthly depreciation is equal to (annual depreciation / 12). (d) Physical count showed that $5,000 of supplies and $796,000 of merchandise inventory remained on hand at 31 March 2021. (The bank statement balance is S50 greater than the cash account balance. This is relating to the interest earned for the cash balance in the bank account for March () The prepaid insurance was paid in last December covering a 12-month general insurance from December 2020 to November, 2021. (g) Allowance for bad debt is estimated based on 10% of the closing accounts receivable balance due to dramatical down tum of the economy. (h) Recognize interest expense for the month. ) Recognize interest revenue for the month. 5 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 15 (e) 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) (1) Prepare an adjusted trial balance. (9) Prepare an income statement and a retained earnings statement for March and a statement of financial position as at 31 March 2021. Requirement 1 (128 points)1 point for each item Input 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 Dr C Amounts Mari (a) Item 2 Date Mar 1 (b) *Mar 1 (c) *Mar 1 (d) Mar 1(e) Dr Cr Dr Cr Dr Dr Dr Cr Dr Long Term Investment Dr Dr Cr Cr Cr Cr Dr Cr Dr Cr Cr Dr Cr Dr CE Dr Cr Dr Cr Dr Cr Dr Cr Account No. Item! Item 3 Items Item Item Item!! Item13 Item 15 Item 17 Item 19 Item21 Item23 Item25 Item27 Item29 Item31 Item33 Item35 Item37 Item 39 Item 41 Item 43 Item 45 Item47 Item49 Item51 Item53 Item55 Item 57 Item 59 Item! Item63 Item 4 Item 6 Item 8 Item 10 Item 12 Item 14 Item 16 Item 18 Item 20 Item 22 Item 24 Item 26 Item 28 Item 30 Item 32 Item 34 Item 36 Item 38 Item 40 tem 42 Item 44 Item 46 Item 48 Item 50 Item 52 Item 54 Item S6 Item 38 Item 60 Item 62 Item 64 *Mar 2 Mar 3 Mar 4 Mar 5 Mar 6 Mar 7(a) Mar 7(b) 8 Account No. Itemos Item67 Item69 Item 71 Item 73 Item 75 Item 77 Requirement contid) Date De Cr Mar 8 Dr Cr Mar 9 (a) Dr Cr "Mar 9(b) Dr Mar 10 Dr De Mar 12 De CE Mar 13 Dr Cr Mar 16 Dr CT Mar 17 De Cr Mar 21 Dr Mar 25 Dr CT Mar 27 Dr CE Mar 28 Dr CE Mar 29 Dr Cr Mar 30 Dr CE Dr Cash CE Item79 Item 1 Item83 Items Item87 Item89 Item91 Item93 Items Item 97 Item99 Item101 Item 103 Item 105 Item107 Item109 Item111 Item 13 Item 15 Iteml17 Item119 Item121 Item123 Item125 Item127 Amounts Item 66 Item 68 Item 70 Item 72 Item 74 Item 76 Item 78 Item 80 Item 82 Item 84 Item 86 Item 88 Item 90 Item 92 Item 94 Item 96 Item 98 Item 100 Item 102 Item 104 Item 106 Item 108 Item 110 Item 112 Item 114 Item 116 Item 118 Item 120 Item 122 Item 124 Item 126 Item 128 Requirement 2 (88 points) 2 points for each item Adjusting entries Date (a) Dr/Cr Account No. Amounts Dr Item 129 Item 130 Cr Item131 Item 132 (b) Dr Item 133 Item 134 Cr Item 135 Item 136 (c)(i) 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 (d) Dr Item149 Item 150 Cr Item 151 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 Item 161 Item 162 Cr Item 163 Item 164 (h) Dr Item 165 Item 166 Cr Item 167 Item 168 (1) Dr Item 169 Item 170 Cr Item 171 Item 172 10 Drs CS 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 Allowance for Doubtfial Accounts 611 Bad Det Expense 151 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 613 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 Merchandise Inventory 630 Miscellaneous Expense 155 Motor Vehicle 231 Notes Payable Notes Receivable 316 Ordinary Shark Dividends Distributable 131 Prepaid Insurance 513 Purchase Discounts 512 Purchase Returns and Allowances 511 Purchases 320 Retained Earnings 616 Salaries Experts 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 Express 330 Treasury Shares Unearned Rent Revenue 619 Utilities Expense Item 173 Item 174 In 175 Lem 176 Trem 177 Item 17% em 179 Item ID lem 1X1 Iuem 1X2 Item 13 Item 14 Irem IRS Item 16 Item 17 Item 1X Im INO Item 190 Item 191 Item 192 Item 193 em 194 Item 195 Item 196 Item 197 lucm 19 Item 199 Item 200 Item 201 Item 202 Tem 203 Item204 Im 20s Item 206 Item 207 Item 20% Item 200 Item 210 Item 211 Item 212 Hem 213 Tom 214 Item 215 Item 216 Item 217 Hem 218 Im 219 Trem 220 Item 221 Item 222 Item223 121 281 Item 224 Item 225 11 Requirement 4 (78 points, 5 points for each item except Item 234 Intelligent Toys, Inc. Income Statement For the month ended 31 March 2021 E 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 12 Intelligent Toys, Inc Retained Earnings Statement For the month ended 31 March 2021 f Ending retained Earnings (3 points) Item 234 13 Intelligent Toys, Inc. Statement of Financial Position as at 31 March 2021 Property. Plant and Equipment Current Liabilities Item 219 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 Luquity Item 240 Item 241 14 201 Account No 121 630 Chart of Accounts Account No Account Names Accounts Payable including utilities 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 151 Building 101 Cash 711 Depreciation Expense - Building 712 Depreciation Expense - Equipment 713 Depreciation Expense - Motor Vehicle 291 Dividends Payable 153 Equipment Freight-in 612 Freight-out 613 Fuel Expense 820 Gain on Disposal 615 Insurance Expense Interest Expense 221 Interest Payable 115 Interest Receivable Interest Revenue 150 140 Long-term Investment 620 Loss on Disposal 155 231 114 316 131 513 512 511 320 241 616 410 411 311 312 313 314 315 132 618 330 281 619 Account Names Merchandise Inventory Miscellaneous Expense Motor Vehide Notes Payable Notes Receivable Ordinary Share Dividends Distributable Prepaid Insurance Purchase Discounts Purchase Returns and Allowances Purchases Retained Earnings Salaries Payable Salaries Expense Sales Revenue Sales Returns and Allowances Share Capital - Ordinary Share Capital - Preference Share Premium - Ordinary Share Premium - Preference Share Premium - Treasury Supplies Supplies Expense Treasury Shares Unearned Rent Revenue Utilities Expense 514 631 415 Land 15