Question

Cash	5,633,555
Accounts Receivable	190,000
Allowance for Doubtful Accounts		13,300
Merchandise Inventory	1,454,919
Parts inventory	437,900
Prepaid insurance	20,667
Supplies	39,520
Short term Investments, FV-NI	390,000
Assets held for sale, fair value	190,000
Investments, FV-OCI	845,000
Building	2,200,000
Accumulated Depreciation: Building		1,540,000
Land	1,845,000
Vehicles	252,000
Accumulated Depreciation: Vehicles		138,600
Equipment	2,640,000
Accumulated Depreciation: Equipment		1,188,000
Bank loan		654,714
Accounts payable		465,574
Salaries payable		11,538
Interest payable		10,489
Mortgage loan		1,503,000
Other long term debt		1,095,780
Common Shares		200,000
Retained Earnings		2,684,200
Accumulated Other Comprehensive Income		174,320
Sales revenue		11,400,000
Service revenue		8,892,000
Revenue from US operations (C$)		2,173,500
Sales Returns & Allowances	342,000
Cost of Goods Sold	9,883,800
Salaries expense	1,000,000
Rent expense	-
Supplies expense	163,200
Depreciation expense	490,400
Marketing expense	838,000
Utilities expense	89,250
Vehicle expense	53,240
Insurance expense	62,000
Misc. expense	16,420
Bad debt expense	22,800
Expenses from US operations (C$)	2,899,000
Interest Expense (on Long Term Debt)	125,867
Gain or Loss on revaluation of Assets Held for Sale	272,000
Interest Income		33,150
Income Tax Expense (Recovery) - Continuous Operations	245175 -
Income Tax Expense (Recovery) - Discontinued Operations		145,100
Income Tax Expense (Recovery) - Revaluation of Assets Held for Sale		54,400
Unrealized Gains (Losses) through OCI		23,590
Income Tax Expense (Recovery) - OCI	4,718
TOTAL	32,401,255	32,401,255

Prepare balance sheet,income statement and statement of owners equity.

Answer 1

Hi

Here is the answer.

Income Statement
Sales revenue		$       11,400,000
Less Sales returns&Allowances		$            342,000
Net Sales		$       11,058,000
Service Revenue		$         8,892,000
Revenue from US Operations		$         2,173,500
Net Revenue		$       22,123,500
Less Cost of goods sold		$         9,883,800
Gross Profit		$       12,239,700
Selling & Admn.Expenses
Salaries Expense	$       1,000,000
Supplies expense	$          163,200
Depreciation Expense	$          490,400
Marketing expense	$          838,000
Utilities expense	$            89,250
Vehicles expense	$            53,240
Insurance expense	$            62,000
Miscellaneous expense	$            16,420
Bad debts expense	$            22,800
Expenses from US Operations	$       2,899,000
Interest expense on long term debt	$          125,867	$         5,760,177
Income from operations		$        6,479,523
Other Income and Expense
Interest Income	$            33,150
Unrealized gain through OCI	$            23,590
Loss on revaluation on assets held for sale	$        (272,000)	$           (215,260)
Income before income taxes		$         6,264,263
Less Income taxes recovery continued opertions	$          245,175
Less Income taxes recovery-Discontinued operations	$          145,000
Less Income tax recovery-Revlalued assets held for sale	$            54,400
Income tax expense( recovery)-OCI	$              4,718	$            449,293
Net Income for the year		$         5,814,970

	Balance Sheet
Assets
Fixed Assets
Land		$        1,845,000
Building	$           2,200,000
Less Accumulated Depreciation	$           1,540,000	$           660,000
Vehicles	$               252,000
Less:Accumulated Depreciation	$               138,600	$           113,400
Equipment	$           2,640,000
Less:Accumulated Depreciation	$           1,188,000	$        1,452,000
Total Fixed Assets		$       4,070,400	$              4,070,400
Cash		$        5,633,555
Accounts receivable	$               190,000
Less:Allowance for bad debts	$                 13,000	$           177,000
Merchandise inventory		$        1,454,919
Parts inventory		$           437,900
supplies		$             39,520
Short term investmentsFV-NI		$           390,000
Assets helf for sale-fair value		$           190,000
Investments -FV-OCI		$           845,000
prepaid insurance		$             20,667
Total current Assets		$       9,188,561
Less Current Liabilities
Bank Loan	$               654,714
Accounts Payable	$               465,574
Salaries Payable	$                 11,538
Interest payable	$                 10,489
	$           1,142,315	$        1,142,315
Net Current Assets			$              8,046,246
Total Assets			$            12,116,646
Liabilities & Owner's Equity
Mortgage Loan		$        1,503,000
Other Long term debt		$        1,095,780	$               2,598,780
Difference in Trail Balance	$               644,376		$                  644,376
Owner's Equity
Common shares	$               200,000
Retained earnings	$           2,684,200
Accumulated other comp.income	$               174,320
Profit transferred	$           5,814,970		$               8,873,490
Total Liabilities and owner's Equity			$            12,116,646

Statement of owner's equity
Capital at the beginning	$               200,000
Retained earnings	$           2,684,200
Add: Accumulated other Income	$               174,320
Profit Transferred	$           5,814,970
Ending Owner's Equity	$           8,873,490

Hope this is helpful.

All the best