Related questions
Concept explainers
The draft adjusted
|
Debits |
Credits |
||||||
|
$ |
$ |
||||||
|
Cash |
410,000 |
||||||
|
|
1,030,000 |
||||||
|
Allowance for expected credit losses |
|
|
|
|
17,000 |
||
|
Inventory |
1,374,000 |
||||||
|
Buildings |
2,080,000 |
||||||
|
|
304,000 |
||||||
|
Investments |
|
|
1,000,000 |
|
|
||
|
Bonds payable (due in three years) |
1,200,000 |
||||||
|
Accounts payable |
290,000 |
||||||
|
Dividends payable |
72,000 |
||||||
|
Income tax payable |
192,000 |
||||||
|
Common shares |
600,000 |
||||||
|
|
509,000 |
||||||
|
Accumulated other comprehensive income 1 January 2021 |
370,000 |
||||||
|
Sales revenue |
17,870,000 |
||||||
|
Cost of goods sold |
9,518,000 |
||||||
|
Selling & Administrative expenses |
5,520,000 |
||||||
|
Interest expense |
422,000 |
||||||
|
Gain on disposal of land |
120,000 |
||||||
|
Dividends declared |
190,000 |
||||||
|
Totals |
21,544,000 |
21,544,000 |
Notes:
1. Depreciation for 2021 has already been recorded and included in Selling & Administrative expenses.
2. Cash includes prepaid insurance of $9,000, and a bank overdraft of $10,000 has been deducted.
3. Inventory does not include goods costing $10,000 shipped out on consignment. Receivables of $10,000 were recorded on these goods.
4. Investments include:
a. Investments in common shares treated as FV-NI $306,000 (at cost), market value at December 31, 2021 $325,000
b. Long-term investments treated as FV-OCI $554,000 (at cost), market value at December 31, 2021 $540,000
c. Franchises of $140,000 purchased on December 31, 2021.
Required and Additional information:
(a) Calculate the Net Income for the year ended based on the trial balance above and the additional information provided in the notes above. (No need to prepare a proper income statement, just the net income calculation)
(b) Prepare a classified
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