Question 8 32 points Save Answer 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 150,600 ** your answers should include numerals only, no dollar sign ("S"), no comma" Accounts Receivable 271,160 eg five thousand dollars should be input as 5000, otherwise, no marks will be a Accumulated Depreciation - Building 507,600 Accumulated Depreciation - Equipment 389,800 Accumulated Depreciation - Motor vehicle 382,660 Allowance for Doubtful Accounts 27,116 Bad Debt Expense 32,591 Building 6,480,000 Followings are items from the income statement Cash 643,743 for the month ended 30 September 20x1 $ Depreciation Expense - Building 10,800 Net Sales Depreciation Expense - Equipment 9,800 Cost of Good purchased Depreciation Expense - Motor Vehicle 3,420 Cost of Goods available for sale Dividends Payable 335,200 Cost of Goods Sold Equipment 660,000 Gross Profit Freight-in 400 Total Operating Expense Operating Profit Freight-out 500 Net Income Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue 1,200 250 250 1,050 1,050 Following is items from retained earnings statement the income statement for the month ended 30 September 20x1 $ Ending Retained Earnings Long-term Investment Loss on Disposal Merchandise Inventory Motor Vehicle Notes Payable Notes Receivable Prepaid Insurance Purchase Discounts 2,500,000 6,128 650,000 475,000 100,000 210,000 10,800 918 Following are the items from the statement of financial position as at 30 September 20x1 $ Purchase Returns and Allowances 1,200 PPE (net book value) Purchases 193,000 Long Term Investment Retained Earnings 208,108 Current Assets Total Assets Salaries Expense Salaries Payable Sales Returns and Allowances 118,800 81,000 980 Sales Revenue 436,960 Current Liabilities Share Capital - Ordinary 4,400,000 Equity Total Liabilities & Equity Share Capital - Preference Share Premium - Ordinary Share Premium - Preference Supplies Supplies Expense Treasury Shares Unearned Rent Revenue Utilities Expense 4,000,000 1,000,000 200,000 3,000 9,040 46,000 120,000 4,800 Additional information: closing inventory at 30 September 20x1 is $698,000