The following partial information from the accounting records of Logan Roy Co. as of December 31, 2020, the end of the company's fiscal year, has been collected:

Accounts receivable (Balance at Dec 31, 2020)_______________________________$60020
Accumulated Depreciation-Equipment(Balance at January 1, 2020)______________$50060
Cash (Balance at Dec 31, 2020)______________________________________________$20040
Common Stock (Balance at January 1, 2020)___________________________________$40460
Cost of Goods Sold (of the year 2020)_______________________________________$250020
Earnings before interest and taxes (of the year 2020)_______________________$180220
Equipment (Balance at January 1, 2020)______________________________________$160200
Inventory (Balance at Dec 31, 2020_Unadjusted)______________________________$45210
Loan (Balance at Jan 01, 2020)______________________________________________$80380
Net Income (of the year 2020)_______________________________________________$90400
Retained Earnings (Balance at January 1, 2020)______________________________$60470
Supplies (Balance at Dec 31, 2020_Unadjusted)_______________________________$4100

Additional Information

a.Throughout the year, Supplies of $2720 has been used.
b.The annual interest rate on the Loan is 5%.
c.Physical check on December 31, 2020, reveals that inventory actually on hand is $42,200.
d.Depreciation @ 8% is to be charged on Equipment using the straight-line method.
e.The company has declared a 5% Cash Dividend on its Common Stock.

Calculate the following using all the relevant information given above:

(1) Retained Earnings Balance at the end of December 31, 2020 (1 Mark)

(2) Earnings Before Taxes (EBT) for the year ended December 31, 2020 (1 Mark)

(3) Accumulated Depreciation-Equipment Balance at the end of December 31, 2020 (1 Mark)

(4) Cost of Goods Sold for the year ended December 31, 2020 (1 Mark)

(5) Total Current Assets at the end of December 31, 2020 (1 Mark)

Answer rating: 100% (QA)

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