January $1,2022,$ Mr$.$ John established his business $-$ foreign wines shop.

He brought $50,000$ CHF in the capital of the company. The bank granted a loan of $100,000$ CHF at the rate of $3\%.$ This amount must be repaid over a period of $5$ years, with constant amortization schedule $($December $30).$

Office equipment was purchased for $80,000$ CHF$.$ John estimates that useful life of equipment is $8$ years. Computer equipment was purchased for $15,000$ CHF$.$ The expected useful life is $3$ years.

During the year, John bought $10,000$ bottles of wine for $150,000$ CHF $($at the end of year, he paid accounts payable associated with this purchase$).$ During the year, he bought $20,000$ bottles of wine for $270,000$ CHF; $20\%$ of this amount still was not paid at the end of $2022.$

In $2022,$ he sold $25,000$ bottles for $500,000$ CHF$.$ At year end, $10,000$ CHF of the amount was not yet collected.

The rent expenses $($for rented stores$)$ are $5,000$ CHF per month. The rent is paid on the first day of the month. During the year, various operating costs amounted to $47,000$ CHF $($all paid in $2012).$

Record transactions in the journal and general ledger.

Construct trial balance. Do adjustment in the trial balance for depreciation expenses and other accruals$/$ deferrals.

Construct balance sheet, income statement for $2022$

Construct cash flow statement for $2022$

Answer rating: 100% (QA)

To prepare all the financial statements requested and perform the necessary adjustments it would be ... View the full answer