Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
| 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 adjusted trial balance of ITI as at 30 September 20x1 is presented as follows | |||||||
| $ | |||||||
| Accounts Payable | 150,600 | ** your answers should include numerals only, no dollar sign ("$"), no comma "," , | |||||
| Accounts Receivable | 271,160 | eg five thousand dollars should be input as 5000, otherwise, no marks will be awarded. | |||||
| Accumulated Depreciation Building | 507,600 | ||||||
| Accumulated Depreciation Equipment | 389,800 | ||||||
| Accumulated Depreciation Motor vehicle | 382,660 | ||||||
| Allowance for Doubtful Accounts | 27,116 | ||||||
| Bad Debt Expense | 32,591 | ||||||
| Building | 6,480,000 | Followings are items from the income statement | |||||
| Cash | 643,743 | for the month ended 30 September 20x1 | $ | ||||
| Depreciation Expense Building | 10,800 | Net Sales | |||||
| Depreciation Expense Equipment | 9,800 | Cost of Good purchased | |||||
| Depreciation Expense Motor Vehicle | 3,420 | Cost of Goods available for sale | |||||
| Dividends Payable | 335,200 | Cost of Goods Sold | |||||
| Equipment | 660,000 | Gross Profit | |||||
| Freight-in | 400 | Total Operating Expense | |||||
| Freight-out | 500 | Operating Profit | |||||
| Insurance Expense | 1,200 | Net Income | |||||
| Interest Expense | 250 | ||||||
| Interest Payable | 250 | Following is items from retained earnings statement | |||||
| Interest Receivable | 1,050 | the income statement for the month ended 30 September 20x1 | |||||
| Interest Revenue | 1,050 | $ | |||||
| Long-term Investment | 2,500,000 | Ending Retained Earnings | |||||
| Loss on Disposal | 6,128 | ||||||
| Merchandise Inventory | 650,000 | ||||||
| Motor Vehicle | 475,000 | ||||||
| Notes Payable | 100,000 | ||||||
| Notes Receivable | 210,000 | Following are the items from the statement of financial position | |||||
| Prepaid Insurance | 10,800 | as at 30 September 20x1 | |||||
| Purchase Discounts | 918 | $ | |||||
| Purchase Returns and Allowances | 1,200 | PPE (net book value) | |||||
| Purchases | 193,000 | Long Term Investment | |||||
| Retained Earnings | 208,108 | Current Assets | |||||
| Salaries Expense | 118,800 | Total Assets | |||||
| Salaries Payable | 81,000 | ||||||
| Sales Returns and Allowances | 980 | ||||||
| Sales Revenue | 436,960 | Current Liabilities | |||||
| Share Capital Ordinary | 4,400,000 | Equity | |||||
| Share Capital Preference | 4,000,000 | Total Liabilities & Equity | |||||
| Share Premium Ordinary | 1,000,000 | ||||||
| Share Premium Preference | 200,000 | ||||||
| Supplies | 3,000 | ||||||
| Supplies Expense | 9,040 | ||||||
| Treasury Shares | 46,000 | ||||||
| Unearned Rent Revenue | 120,000 | ||||||
| Utilities Expense | 4,800 | ||||||
| Additional information: closing inventory at 30 September 20x1 is $698,000 | |||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started