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please show all steps. Thanks you are logged in as L Below is the draft trial balance for Immune Inc. as at December 31, 2020
please show all steps. Thanks
you are logged in as L Below is the draft trial balance for Immune Inc. as at December 31, 2020 for the year ended on that date. Debit Credit Cash 15,600 Cost of goods sold 215,000 Gain on sale of equipment 2,100 Allowance for doubtful accounts 4,800 Prepaid rent 2,400 Wages expense 90,200 Accounts receivable 32,000 Sales 430,000 Property, plant and equipment 265,000 Accumulated depreciation - property, plant and equipment 75,400 Accounts payable 25,700 Rent expense 14,400 Wages payable 700 Interest expense 4,500 Bank loan payable, long term 100,000 Income tax expense 14,800 Unearned revenue 12,500 Inventory 41,000 Long-term investments 5,000 Depreciation expense 10,300 Dividends declared 20,000 Selling and administrative expenses Retained earnings - December 31, 2019 23,700 87,700 15,000 Common shares ($10,000 issued as at January 1, 2020. Another $5,000 issued during 2020.) TOTALS 753,900 753,900 Using the above account balance information, prepare the following 1. Income Statement using multi-step method. Be sure to include all the appropriate headings and sections. (11 marks) 2. A Statement of Changes in Equity, including appropriate headings. (8 marks) 3. A classified Statement of Financial Position. Be sure to include all the appropriate headings and sections and subtotals. (18 marks) 4. Immune Inc. accounting records reveal the following additional information relating to 2020 transactions: The beginning balances of various accounts at January 1, 2020 were as follows: Cash $20,000 Net accounts receivable $30,800 Inventory $42,300 Prepaid rent $ 1,400 Accounts payable $28,500 Salaries payable $ 600 Unearned revenue $13,400 Equipment with a carrying value of $10,000 was sold. The company purchased equipment for $34,000. The company purchased long-term investments for $3,000. The company issued common shares for $5,000 during the year. The company paid off $25,000 of the bank loan payable. a) Using the financial statements you created in Parts A-C, and the above information, prepare a statement of Cash flows for the year ended December 31, 2020 (19 marks) b) Comment on the strengths and weaknesses of the company's cash flow based on your calculations (2 marks)Step by Step Solution
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