Required

Prepare Statement of Retained Earnings for the period ended at December 31, 2022.

Prepare Statement of Financial Position, for the period ended at December 31, 2022.

        

1. ASF uses a perpetual inventory system. Below is a breakdown of inventory on hand at December 31, 2022: Inventory - Skis Inventory - Snowboards Inventory-Helmets Inventory - Boots Quantity 20 5 5 35 Unit Cost $300 $400 $100 $70 Total Cost Net Realizable Value $5,700 $2,250 $550 $2,300 $6,000 $2,000 $500 $2,450 2. The company ran out of a popular helmet. They placed an order for 8 of these helmets on account at a cost of $100 each on December 28, 2022. Terms of this order were 2/10, n/30 FOB shipping point. Olivia received an email notifying her of shipment on December 31, 2022. Olivia looked forward to replenishing this popular item and adding it to inventory upon receipt. 3. A count of supplies was done on December 31, 2022, where $1,550 worth of supplies was found on hand. 4. An insurance policy was purchased in March 2022 for the next 12 months starting April 1, 2022, and the purchase was properly recorded. 5. Olivia was ecstatic when the custom storefront sign arrived on March 1, 2022; just in time to be put up before the store's official grand opening! She hopes that the sign will last for the next 15 years. Olivia sure had fun designing and setting up the store! The furniture and fixtures she invested in (all of which was incurred within the first couple days of January 2022) are expected to last for the next 10 years. Olivia wanted to ensure that she could monitor the store's operations and her teaching schedule. As such, she invested in both a laptop and tablet. Everything was purchased on January 1, 2022 when she took advantage of some Boxing Day sales prices. She expects that both the laptop and tablet would be valuable for the next 5 years where she would need to expect to upgrade. Straight-line method is used for the storefront sign and the furniture and fixtures, and double declining-balance method is used for the laptop and tablet.