Problem - 11 (All sub questions in problem 11 has needs your expert answers i.e a-e) Has to be solved with all mentioned requirements from a) to e)

*The question a) has to solved with Transaction based approach (Tabular analysis) and not by simple booking keeping format. While the rest all has to be answered as requested in the image questions.

Thank you!

The question is followed by a series of comprehensive problems. They are uploaded in sequence, my requested question is Problem - 11 (All sub questions in problem 11 has needs your expert answers i.e a-e) the last one in the series of images

Problem 1 (Only for reference for the rates and figures of final questions)

Problem 2 (Only for reference for the rates and figures of final questions)

Problem 3 (Only for reference for the rates and figures of final questions)

Problem 4 (Requesting solution for this question from data and figures mentioned in above problems)

The question has to solved with Transaction based approach (Tabular analysis) and not by simple booking keeping format.

Please help me out with the solution.

Thank you!

17. Comprehensive Problem - Part 1 The following are the transactions that occurred for the year ending December 31, 2016 for a newly formed company, Alpha Ltd. Jan. 1 Received $400,000 cash from investors in exchange for 10,000 common shares. Jan. 1 Borrowed $200,000 cash from The Big Bank, and signed a five-year note. The annual interest rate is 5%. Interest is payable annually on December 31, and principal must be repaid on December 31, 2020. Apr. 1 Acquired equipment for $55,000 cash. The equipment has an estimated useful life of 10 years, and an estimated residual (terminal) value of $5,000. Apr. 15 Purchased inventory for $200,000 on credit from ordinary suppliers. May 1 Billed customers $250,000 for sales. The cost of the inventory was $140,000 for these sales. 81 on May 1. 2 The Financial Statements June 1 Collected $230,000 cash from customers for the sales made July 1 Paid cash for the amount owing to suppliers of inventory. Aug. 1 Received land valued at $40,000 from an investor in exchange for 1,000 common shares. Oct. 1 Made cash sales of $50,000. The cost of the inventory was $28,000 for these sales. Nov. 1 Purchased inventory for $100,000 cash from suppliers. Dec. 1 Received an invoice for $4,000 from an electrician for work done during the year. The invoice will be paid in January ordinary Dec. 15 Collected $15,000 cash from customers for the sales made on May 1. Dec. 20 Paid a cash dividend of $5,000 to shareholders. Dec. 30 Paid cash of $100,000 for various operating expenses in 2016. Dec. 31 Paid cash of $10,000 for interest on the bank loan. Dec. 31 Recorded depreciation expense of $3,750 for the equipment. Dec. 31 Paid cash of $2,000 for income taxes. Required (a) Using the transactions-based approach (tabular analysis), record. the above transactions and events for 2016. Determine the end- ing balances for all accounts that are included in the tabular analysis (b) Prepare an income statement for the year 2016. (c) Prepare a statement of changes in equity (statement of retained earnings) for the year 2016. (d) Prepare a balance sheet as at December 31, 2016. return on assets ratio and the return on equity ratio. Appendix 2.1 (e) Using the financial statements you prepared, calculate the 19. Comprehensive Problem - Part 2 This problem is a continuation of Problem #17 in Chapter 2. The account balances as at December 31, 2016 are as follows: Cash $423,000; Accounts receivable $5,000; Merchandise $132,000; Equipment $55,000; Accumulated depreciation $3,750; inventory Land $40,000; Accounts payable $4,000; Long-term note payable $200,000; Common shares $440,000; and Retained earnings $7,250. The following transactions and events occurred in 2017: Jan. 1 Paid rent in advance of $9,000 on an 18-month office lease. (Previously, the company had been paying the rent on a pay-as-you-go basis.) Jan. 21 Paid the electrician for the work she did in 2016. Feb. 15 Purchased inventory for $60,000 on credit from ordinary suppliers. Apr. 1 Billed customers $150,000 for sales. The cost of the inventory was $70,000 for these sales. May 1 Collected $140,000 cash from customers for the sales made on April 1. July 8 Paid cash for the amount owing to suppliers of inventory. Sept. 1 Made cash sales of $30,000. The cost of the inventory was $14,000 for these sales. Nov. 30 $10,000 of accounts receivable will not be collected because the customers went bankrupt. Dec. 1 Received $15,000 cash in advance from a customer for service work to be performed over the next few months. At the end of 2017, approximately 20% of the work had been completed. Dec. 20 Declared a cash dividend of $3,000, which will be paid in January. Dec. 30 Paid cash of $60,000 for various operating expenses in 2017. Dec. 31 Paid the interest on the bank loan. Dec. 31 Recorded depreciation for 2017 for the equipment. The company uses the straight-line method. Dec. 31 Recorded rent expense for 2017. Dec. 31 Recorded for the the portion of revenue earned transaction of December 1. Dec. 31 Paid cash of $1,800 for income taxes. 135 The Income Statement Required (a) Using the transactions-based approach (tabular analysis), record the above transactions and events for 2017. (b) Determine the ending balances for all accounts that are included in the tabular analysis. (c) Prepare an income statement for the year 2017. (d) Prepare a statement of changes in equity for the year 2017. (e) Prepare a balance sheet as at December 31, 2017. (f) Using the financial statements you prepared, calculate the following: (i) Return on assets ratio (ii) Return on equity ratio (iii) Gross profit percentage (iv) Return on sales ratio (v) Net income to sales ratio (vi) Earnings per share (vii) Dividend payout ratio (viii) Percentage markup on cost 13. Comprehensive Problem - Part 3 This problem is a continuation of Problem #19 in Chapter 3. The account balances as at December 31, 2017 are as follows: Cash $463,200; Accounts receivable $5,000; Merchandise inventory $108,000; Prepaid rent $3,000; Equipment $55,000; Accumulated 169 Chapter 4 The Balance Sheet (1): Assets depreciation $8,750; Land $40,000: Dividends payable $3,000); Unearned revenue $12,000; Long-term note payable $200,000; Com- mon shares $440,000; and Retained earnings $10,450. The following transactions and events occurred in 2018, Jan. 15 Paid the dividend declared in December. Mar. 1 Purchased inventory for $50,000 cash from ordinary suppliers Apr. 1 Billed customers $300,000 for sales. The cost of the inventory was $140,000 for these sales. June 30 Collected $140,000 cash from customers for the sales made on April 1. July 1 Paid rent in advance of $6,300 on a 12-month office lease. Sept. 1 Made cash sales of $15,000. The cost of the inventory was $7,000 for these sales. Sept. 15 All of the service work associated with the unearned revenue was completed. Nov. 30 All remaining accounts receivable were collected except for $10,000 Dec. 30 Paid cash of $90,000 for various operating expenses in 2018. Dec. 31 Paid the interest on the bank loan. Dec. 31 Recorded depreciation for 2018 for the equipment Dec. 31 Recorded rent expense for 2018. Dec. 31 The replacement cost (market value) of the inventory on December 31, 2018 was $3,000. Dec. 31 Paid cash of $11,000 for income taxes. Required (a) Using the transactions-based approach (tabular analysis), record the above transactions and events for 2018. Determine the end- ing balances for all accounts that are included in the tabular analysis. (b) Prepare an income statement for the year 2018. (c) Prepare a statement of changes in equity for the year 2018. (d) Prepare a balance sheet as at December 31, 2018 (e) Using the financial statements you prepared, calculate the following: (i) Return on assets ratio (ii) Return on equity ratio (iii) Gross profit percentage (iv) Return on sales ratio (v) Net income to sales ratio (vi) Earnings per share (vii) Dividend payout ratio (viii) Receivables turnover ratio (ix) Inventory turnover ratio (x) Asset turnover ratio 170 11. Comprehensive Problem - Part 4 This problem is a continuation of Problem #13 in Chapter 4 The account balances as at December 31, 2018 are as follows: Cash $602,900; Accounts receivable $10,000; Merchandise inventory $3,000 Prepaid rent $3,150; Equipment $55,000; Accumulated depreciation $13,750; Land $40,000; Accounts payable $0; Long-term note payable $200,000; Common shares $440,000; and Retained earnings $60,300. The following transactions and events occurred in 2019. Jan. 1 Issued $50,000 of 5% preferred shares for cash. Jan. 1 Sold the equipment at its written-down value (book value) for cash Jan. 1 Acquired new equipment for $150,000 cash. The new equipment has an estimated useful life of 15 years and no expected residual value. Apr. 1 Purchased inventory for $80,000 cash from ordinary suppliers. July 1 Paid rent in advance of $3,200 on a six-month office lease. Aug. 1 Made cash sales of $150,000. The related cost of goods sold was $65,000. Sept. 1 Purchased additional land for cash of $20,000. Oct. 31 All remaining accounts receiv ole were collected Dec. 30 Various operating expenses totalled $40,000. All were paid in cash except for $5,000 for utilities, which will be paid in January Dec. 31 Paid the annual dividend on the preferred shares, and a 5- cent dividend per common share. Dec. 31 Paid the interest on the bank loan. Dec. 31 Recorded depreciation for the new equipment. Dec. 31 Recorded rent expense for 2019. Dec. 31 Paid cash of $3,800 for income taxes. Required (a) Using the transactions-based approach (tabular analysis), record the above transactions and events for 2019. Determine the end- ing balances for all accounts that are included in the tabular analysis. (b) Prepare an income statement for the year 2019. (c) Prepare a statement of changes in retained earnings for the year 2019, (d) Prepare a balance sheet as at December 31, 2019. 204 Discussion Questions and Problems (e) Using the financial statements you prepared, calculate the following: (i) Return on assets ratio (ii) Return on equity ratio (iii) Gross profit percentage (iv) Return on sales ratio (v) Net income to sales ratio (vi) Earnings per share (vii) Dividend payout ratio (viii) Receivables turnover ratio (ix) Inventory turnover ratio (x) Asset turnover ratio (xi) Current ratio (xii) Quick ratio (xiii) Debt to equity ratio (xiv) Debt to assets ratio