Ivanhoe Images Ltd. has been in operation for several years. It wholesales furniture to its customers. The company's post-closing trial balance at July 31, 2018, the end of its fiscal year, is presented below: IVANHOE IMAGES LTD. Post-Closing Trial Balance July 31, 2018 Debit Credit $ 186,620 2,841,800 $ 304,100 Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation equipment Accounts payable Bank loan payable Common shares 529,900 213,390 75,377 971,840 355,200 311,400 1,753,793 Retained earnings $3,771,710 $3,771,710 The company had a limited amount of business activity in August 2018 because of holidays for both the company and its major customers. You have been hired on a temporary basis to update the company's records for August. The August transactions and adjustments are presented below: Aug. 1 Paid $19,390 for office expenses and $3,477 for the August rent. 2 Accepted a six-month, 8% note in exchange for Chen Enterprises' overdue account receivable of $99,000. 3 Sale on account to Chavier Ltd. for $483,700, terms 2/10, n/30. Cost of goods sold, $263,670. The company uses a perpetual inventory system. 8 Determined that an account receivable from Densmore Ltd. of $74,770 is uncollectible. 9 A $303,800 partial payment on account was received from Chavier (see August 3 transaction). 10 Old equipment was sold for $6,440. The equipment's original cost was $74,190; accumulated depreciation to the date of disposal was $63,062. 14 Paid a $9,470 income tax instalment. 21 Purchased a patent for $24,360 cash. The estimated useful life of the patent is five years; the legal life, 20 years. 31 Recorded cash received from sales of digital library images for the month, $74,880. The cost of goods sold is $35,400. 31 The monthly bank statement revealed the following unrecorded items: interest on bank loan, $1,570, and bank service charges, $1,235. 31 Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that doubtful accounts totalled $318,060 at month end. 31 Recorded depreciation for the month on the remaining equipment that cost $139,200 and is still in use. Useful life of all equipment is estimated to be four years with no residual value. The straight-line method of depreciation is used and depreciation is calculated to the nearest month. 31 Recorded and paid salaries for the month of $97,400. 31 Accrued interest on the Chen Enterprises' note receivable (see August 2 transaction). 31 Recorded amortization on the patent (see August 21 transaction). A full month's amortization is recorded on any intangible assets acquired during the month. Prepare a statement of changes in equity at August 31. (Round answers to 0 decimal places, e.g. 5,275.) IVANHOE IMAGES LTD. Statement of Changes in Equity Common Shares Retained Earnings Total Equity IVANHOE IMAGES LTD. Income Statement Month Ended August 31, 2018 IVANHOE IMAGES LTD. Statement of Financial Position Assets Liabilities and Shareholders' Equity $
