Toy Town Toys Incorporated

You are required to construct a Statement of Earnings, a Statement of Retained Earnings and a Balance Sheet for the year ended, or as at, January 31, 2014, whichever is appropriate. Not all of the account titles needed are given (i.e., Total current assets). You must provide the missing titles. However, you must also use those listed below and, in certain cases, determine the missing amounts. This quiz has been designed so that if you cannot complete one section you can still go on to the next section and not be at a disadvantage.

N.B. The Balance Sheet accounts are as of January 31, 2014, except where noted. The Income Statement amounts are for the year ending January 31, 2014. All account amounts are in thousands of dollars.

Net earnings after tax............................................................................................................................................18.0

Other current liabilities .........................................................................................................................................61.5

Common shares ....................................................................................................................................................36.3

Bank loan demand note .................................................................................................................................... 150.1

Purchases..........................................................................................................................................................1,729.3

Office expenses....................................................................................................................................................105.9

Goodwill...................................................................................................................................................................9.4

Long-term debt......................................................................................................................................................89.5

Sales returns and allowances.................................................................................................................................57.5

Buildings, cost......................................................................................................................................................123.4

Accounts Payable..................................................................................................................................................248.0

Delivery expenses...................................................................................................................................................86.6

Preferred shares.....................................................................................................................................................43.3

Equipment, cost......................................................................................................................................................96.4

Accounts receivable (net).....................................................................................................................................231.2

Income taxes payable...............................................................................................................................................6.0

Accumulated depreciation, Equipment, January 31, 2014.....................................................................................74.6

Retained Earnings, January 31, 2014....................................................................................................................232.2

Prepaid expenses....................................................................................................................................................16.0

Sales...................................................................................................................................................................2,188.1

Accumulated depreciation, Building, January 31, 2014..........................................................................................55.5

Inventory, January 31, 2013..................................................................................................................................358.9

Dividends.................................................................................................................................................................12.0

Interest expense......................................................................................................................................................25.3

Land..........................................................................................................................................................................33.4

Inventory, January 31, 2014...................................................................................................................................441.7

Cash...........................................................................................................................................................................45.5

Depreciation expense................................................................................................................................................35.0

Estimated income tax expense....................................................................................................................................6.0

Salaries and wages expense.....................................................................................................................................207.3