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 Title Account No. Debit ($) Credit ($) 420,000 675,000 931,500 570,000 664,668 20,250 9,720,000 1,199,520 220,000 990,000 144,000 750,000 975,000 832,500 2,800,000 18.000 201 Accounts Payable 112 Accounts Receivable 152 Accumulated Depreciation - Building 154 Accumulated Depreciation - Equipment 156 Accumulated Depreciation - Motor Vehicle 113 Allowance for Doubtful Accounts 151 Building 101 Cash 291 Dividends Payable 153 Equipment 115 Interest Receivable 140 Long-term Investment 121 Merchandise Inventory 155 Motor Vehicle 114 Notes Receivable 131 Prepaid Insurance 320 Retained Earnings 241 Salaries Payable 311 Share Capital - Ordinary $1 par value, 10,000,000 shares authorized, 6,000,000 shares issued and 5,977,500 shares outstanding 312 Share Capital - Preference 5%, S100 par value, noncumulative, 100,000 shares authorized, 60,000 shares issued and outstanding 313 Share Premium - Ordinary 314 Share Premium - Preference 315 Share Premium - Treasury 132 Supplies 330 Treasury Shares (22,500 shares) 2,077,212 117,000 6,000,000 6,000,000 840,000 300,000 8,000 8,360 56,250 18,168,630 18,168, 630 The following activities took place in March: Mar. 1(a) Purchased children laptop toys from Esorbma Limited, $94,000, terms 1/10, n/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 each. (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, $140,000 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 warehouse 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 Tnec Niv Limited for the remote-control helicopters shipped on 1 March and arrived at the warehouse of Tnec Niv Limited on 3 March. 4 Sold kids ride on cars to Vinga Limited, $150,000, 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 warehouse 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 $16,000 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. 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 each. 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 ITI. 7(b) Received credit memorandum of $1,800 from Esorbma Limited for goods purchased in March due to discrepancy in the color. 8 Granted Vinga Limited an allowance of $970 (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, n/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 $220,000 on account for the purchase on 27 February 2021. Purchases terms with Esorbma Limited in February was 2/10, n/30, FOB shipping point 10 Paid $180,000 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 $45,000 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 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 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. 3 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 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 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. 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 $16,000 outstanding balance. Requirement 1(128 points) :Journalize the March transactions 10 Input "O" 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. Amount $ 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 Item 11 Item 12 Dr Item13 Item 14 Cr Item15 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 Item 25 Item 26 Cr Item27 Item 28 Cr Item29 Item 30 Mar 1 (e) Dr Item31 Item 32 Cr Item33 Item 34 *Mar 2 Dr Item35 Item 36 Cr Item 37 Item 38 Cr Item 39 Item 40 Mar 3 Dr Item 41 Item 42 Cr Item 43 Item 44 Mar 4 Dr Item 45 Item 46 Cr Item 47 Item 48 Mar 5 Dr Item49 Item 50 Cr Item 51 Item 52 Mar 6 Dr Item53 Item 54 Cr Item55 Item 56 Mar 7 (a) Dr Item 57 Item 58 Cr Item 59 Item 60 Mar 7 (b) Dr Item61 Item 62 Cr Item 63 Item 64 Date Mar 8 Dr/Cr Dr Cr Mar 9 (a) Dr Cr *Mar 9(b) Dr Cr Account No. Amount $ Item65 Item 66 Item67 Item 68 Item69 Item 70 Item 71 Item 72 Item 73 Item 74 Item 75 Item 76 10 Item 77 Item 78 Item 79 Item 80 Item 81 Item 82 Cr *Mar 10 Dr Dr Cr Item83 Item 85 Item 84 Item 86 Mar 12 Dr Cr Dr Item 88 Item 90 Mar 13 Cr Item 92 Mar 16 Dr Item 94 Cr Item 96 Mar 17 Dr Item 98 Cr Item 100 Item87 Item 89 Item91 Item93 Item 95 Item 97 Item 99 Item 101 Item 103 Item 105 Item 107 Item 109 Item111 Item 113 Mar 21 Dr Item 102 Cr Item 104 Mar 25 Dr Item 106 Cr Dr Item 108 Item 110 Mar 27 | Cr Dr Item 112 Item 114 Mar 28 Item 116 Mar 29 Item 118 Mar 30 Cr Item 115 Dr Item117 Cr Item 119 Dr Item121 Cr Item 123 Dr Cash Item 125 Cr Item 127 Item 120 Item 122 Item 124 Item 126 Item 128