In: Accounting
All amounts are expressed in Canadian dollars and report normal balance.
Account | Balance |
Accounts payable | $ 4,360 |
Accounts receivable | $ 200 |
Advertising expense | $ 3,200 |
Bank loan payable | $ 8,000 |
Building (net value) | $ 26,100 |
Cash | $ 34,000 |
Common shares | $ 16,000 |
Cost of goods sold | $ 92,000 |
Depreciation expense, Building | $ 4,400 |
Income tax payable | To determine |
Interest expense | $ 600 |
Inventory | $ 10,800 |
Land | $ 16,000 |
Prepaid rent | $ 9,200 |
Rent expense | $ 1,000 |
Retained earnings (opening balance January 1, 2020) | $ 46,020 |
Sales revenue | $ 168,000 |
Supplies | $ 400 |
Supplies expense | $ 200 |
Unearned revenue | $ 2,400 |
Wages expense | $ 18,000 |
1- Calculate total current asset
2- Total non current asset ( consider the net book value at it appears in the table given. The 4,400 depreciation expense has been already added to accumulated depreciation)
3- Income tax payable (30% tax rate)
4- Total current liabilities
5- Total non current liabilities
6- Retained earnings ending balance (Using Ben’s Inc. account balances, assuming the board of directors declared dividends of $28,680, calculate)
7 - Total Shareholders' equity
Requirement 1 | ||
Cash | 34,000 | |
Accounts receivable | 200 | |
Inventory | 10,800 | |
Prepaid rent | 9,200 | |
Supplies | 400 | |
Total current asset | 54,600 | |
Requirement 2 | ||
Building | 26,100 | |
Land | 16,000 | |
Total non current asset | 42,100 | |
Requirement 3 | ||
Sales revenue | 168,000 | |
Less: Expenses | ||
Cost of goods sold | 92,000 | |
Advertising expense | 3,200 | |
Depreciation expense, Building | 4,400 | |
Rent Expense | 1,000 | |
Interest expense | 600 | |
Supplies Expense | 200 | |
Wages Expense | 18,000 | 119,400 |
Net Operating Income | 48,600 | |
Income taxes @30% | 14,580 | |
Net Income | 34,020 | |
Requirement 4 | ||
Accounts Payable | 4,360 | |
Income tax payable | 14,580 | |
Unearned revenue | 2,400 | |
Total current liabilities | 21,340 | |
Requirement 5 | ||
Bank loan payable | 8,000 | |
Total non current liabilities | 8,000 | |
Assuming not payble with in one year | ||
Requirement 6 | ||
Retained earnings, Opening balance | 46,020 | |
Add: Net income | 34,020 | |
80,040 | ||
Less:Dividends | 28,680 | |
Retained earnings, Ending balance | 51,360 | |
Requirement 7 | ||
Common shares | 16,000 | |
Retained earnings | 51,360 | |
Shareholders equity | 67,360 |