Question 7 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 30 out of 32 points $ 150,800 Accounts Receivable Accumulated Depreciation - Building 271,160 507,600 your answers should include numerals only, no dollar sign ("$"), no eg five thousand dollars should be input as 5000, otherwise, no marks Accumulated Depreciation-Equipment 389,800 Accumulated Depreciation-Motor vehicle 382,660 Allowance for Doubtful Accounts 27,116 Bad Debt Expense 32,591 Building Cash 6,480,000 Followings are items from the income statement 643,743 for the month ended 30 September 20x1 $ Depreciation Expense-Building 110,800 Net Sales [1] Depreciation Expense-Equipment 9,800 Cost of Good purchased [2] Depreciation Expense-Motor Vehicle 3,420 Cost of Goods available for sale [3] Dividends Payable 335,200 Cost of Goods Sold [4] Equipment 660,000 Gross Profit [5] Freight-in 400 Total Operating Expense [6] Freight-out 500 Operating Profit [7] Insurance Expense 1,200 Net Income [8] Interest Expense Interest Payable 250 250 Interest Receivable 1,050 Following is items from retained earnings statement the income statement for the month ended 30 September 20x1 Interest Revenue 1,050 Long-term Investment 2,500,000 Ending Retained Earnings $ [9] Loss on Disposal 6,128 Merchandise Inventory 650,000 Motor Vehicle 475,000 Notes Payable 100,000 Notes Receivable Prepaid Insurance. 210,000 10,800 Following are the items from the statement of financial position as at 30 September 20x1