Problem No.3 (24 %) International Welfare Inc. Adjusted Trial Balance December 31, 2020 Debit $5,300 5,850 2,600 Credit 600 360 700 400 500 Cash Accounts receivable Machinery Accumulated Depreciation: Machinery Supplies Prepaid Insurance Salary Payable Notes Payable Unearned Service Revenues Share Capital Retained earnings Dividends Service Revenues Insurance Expense Salary Expense Income Taxes Expense Miscellaneous Expense Depreciation Expense Totals 550 5,200 1,940 500 13,250 120 4,210 2,000 340 460 $22.440 $22.440 Cont'd... Problem No.3 (a) Using the Adjusted Trial Balance shown in the previous page, prepare an Income Statement for International Welfare Inc. for the year ended December 31, 2020. (9%) (Note: Record all expenses in descending order.) (b) Using the Adjusted Trial Balance shown in the previous page, prepare a Statement of Changes in Equity for International Welfare Inc. for the year ended December 31, 2020. (6%) Cont'd... Problem No.3 The following is Adjusted Trial Balance of International Welfare Inc. as shown in page 6. Reprint of this Adjusted Trial Balance is to enhance the preparation of Statement of Financial Position on the next page. Credit International Welfare Inc. Adjusted Trial Balance December 31, 2020 Debit $5,300 5,850 2,600 Cash 600 360 700 400 Accounts receivable Machinery Accumulated Depreciation: Machinery Supplies Prepaid Insurance Salary Payable Notes Payable Unearned Service Revenues Share Capital Retained earnings Dividends Service Revenues Insurance Expense Salary Expense Income Taxes Expense Miscellaneous Expense Depreciation Expense Totals 500 550 5,200 1,940 500 13,250 120 4,210 2,000 340 460 $22.440 $22.440 Cont'd... Problem No.3 (c) Using the Adjusted Trial Balance shown in the previous page, prepare a Statement of Financial Position for International Welfare Inc. as at December 31, 2020. (9%) (Note: Record all assets in liquidity order.)