Flamingo, a limited liability company, has an accounting year end of 31 December. The accountant is preparing
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- Flamingo, a limited liability company, has an accounting year end of 31 December. The accountant is preparing the financial statements as at 31 December 2019 and requires your assistance. The following unadjusted trial balance has been extracted from the general ledger.
account | Dr | Cr |
Plant & Equipment at cost | 370,000 | |
Plant & Equipment accumulated depreciation, 1 Jan 2019 | 30,000 | |
Building at cost | 110,000 | |
Building accumulated depreciation, 1 Jan 2019 | 55,000 | |
Prepaid rent | 30,000 | |
Bank balance | 35,000 | |
Revenues | 915,000 | |
Supplies | 15,000 | |
Purchases | 555,000 | |
Inventory at 1 Jan 2019 | 80,000 | |
Cash | 10,000 | |
Account Payable | 125,000 | |
Account Receivable | 170,000 | |
Salaries expense | 62,500 | |
Electricity Expense | 25,250 | |
Telephone expense | 45,000 | |
Insurance expense | 29,750 | |
Loan due (December 2029) | 15,000 | |
Retained earnings at 1 Jan 2019 | 65,000 | |
Common stock, $1 | 235,000 | |
Unearned Revenues | 40,000 | |
Dividend paid | 12,500 |
The following additional information is also available:
- The rent prepayment covers three years from July 1, 2019
- Employee salaries of $1,500 are owed for the last three days of the year
- The balance in Supplies after a physical count reveals $7,000of supplies on hand on December 31, 2019
- Plant and equipment has a useful life of 10 years with a salvage value of $20,000
- Building has a useful life of 50 years with no salvage value
- Unearned Revenue tickets show that $14,000 of the trial balance amount has been earned by December 31, 2019
- Closing inventory after a physical count amounted to $87,500
Required: Prepare for Flamingo Ltd.
- The journal entries required for the additional information
- The adjusted trial balance (in good form)
- The income statement for the year ended
- The statement of retained earnings
- The balance sheet as at the year end
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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