All amounts are expressed in Canadian dollars and report normal balance. Account Balance Accounts payable $...

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

Expert Solution

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

ekkarill92 answered 2 years ago

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