Intelligent Toys, Inc (“ITI”) is a well establish toy trading company that adopts the periodic system. ITI prepares its financial statements on a monthly basis. The trial balance of ITI as at 29 February 2020 is presented as follows:

**Transactions in March and adjustment data are shown in separate email ** The information will be released via email on 9 November 2020, 18:00 The alternative treatment in Slide 18 of Lecture 4 powerpoints is not adopted by ITI.

(a) Journalize the March transactions.

(b) Prepare an adjusted trial balance.

(c) Prepare an income statement and a retained earnings statement for March and a statement of financial position as of 31 March 2020.

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Intelligent Toys, Inc Trial Balance As at 29 February 2020 Account No. Account Title Debit Credit ($) (S) 201 Accounts Payable 112 Accounts Receivable 152 Accumulated Depreciation - Building 154 Accumulated Depreciation - Equipment 156 Accumulated Depreciation - Motor Vehicle 280,000 450,000 496,800 380,000 443,112 113 Allowance for Doubtful Accounts 13,500 151 Building 6,480,000 101 Cash 667,680 291 Dividends Payable 153 Equipment 115 Interest Receivable 80,000 660,000 96,000 140 Long-term Investment 500,000 121 Merchandise Inventory 650,000 155 Motor Vehicle 555,000 114 Notes Receivable 1,800,000 131 Prepaid Insurance 320 Retained Earnings 12,000 1,384,808 241 Salaries Payable 311 Share Capital - Ordinary 70,200 $1 par value, 5,000,000 shares authorized, 4,000,000 shares issued Intelligent Toys, Inc Trial Balance As at 29 February 2020 Account No. Account Title Debit Credit ($) (S) 201 Accounts Payable 112 Accounts Receivable 152 Accumulated Depreciation - Building 154 Accumulated Depreciation - Equipment 156 Accumulated Depreciation - Motor Vehicle 280,000 450,000 496,800 380,000 443,112 113 Allowance for Doubtful Accounts 13,500 151 Building 6,480,000 101 Cash 667,680 291 Dividends Payable 153 Equipment 115 Interest Receivable 80,000 660,000 96,000 140 Long-term Investment 500,000 121 Merchandise Inventory 650,000 155 Motor Vehicle 555,000 114 Notes Receivable 1,800,000 131 Prepaid Insurance 320 Retained Earnings 12,000 1,384,808 241 Salaries Payable 311 Share Capital - Ordinary 70,200 $1 par value, 5,000,000 shares authorized, 4,000,000 shares issued

Answer rating: 100% (QA)

a Journal entries Date Accounts title and explanation Ref Debit Credit March 1 Freight in Ac 400 Cash ac 400 March 1 Cash ac 30000 Treasury Stock ac 3... View the full answer