Question

In: Accounting

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

Solutions

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

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