ABC Corporation participates in merchandising business. It starts its operation on January 1, 20x1. The company...

 

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ABC Corporation participates in merchandising business. It starts its operation on January 1, 20x1. The company registered 25,000 shares of common stocks at par of THB 100 each. Its fiscal period starts from January 1 and ends at December 31 of each year. As at December 31, 20x1, unadjusted trial balance of the company is following. ABC Corporation Unadjusted Trial Balance As at December 31, 20x1 Ref. 101 Cash 102 Accounts receivable 106 103 104 Inventory # A 105 Inventory # B Allowance for inventory valuation Prepaid insurance expense-buildings (for the next 107 9 months) 108 Accrued interest revenue 111 Land Buildings Vehicles 112 202 Account Items 113 114 Accumulated depreciation-buildings 115 Accumulated depreciation-vehicles 116 201 203 Allowance for expected credit loss 206 Salary payable 204 Income tax payable 205 Dividends payable 301 Investment bonds of other companies Accounts payable Unearned sale revenue - Inventory # B Loan from banks (due on December 1, 20x3) Common shares (par at THB 100 each) 302 Additional paid-in capital-common shares Debit 2,368,500.00 250,000.00 60,000.00 47,500.00 50,000.00 9.000.00 700,000.00 300,000.00 100,000.00 500,000.00 Q: Prepare statement of financial position of ABC Corporation as at December 31, 20x1. Credit 12,500.00 7,500.00 22,000.00 5.750.00 100.000.00 55,000.00 6,000.00 16,450.00 20,000.00 400,000.00 2,000,000.00 1,690,000.00 Ref. 303 304 401 402 403 501 502 503 504 505 506 507 508 509 Account Items Retained earnings (as at January 1, 20x1) Dividends 510 Debit 20,000.00 Sale revenue -Inventory #A Sale revenue- Inventory #B Interest revenue Cost of goods sold - Inventory #A Cost of goods sold - Inventory #B Salary expense Utility expense Insurance expense-buildings Expected credit loss. Loss on inventory valuation Interest expense Depreciation expense Income tax expense 27,750.00 16,450.00 4,889,200.00 Totals 4,889,200.00 As at December 31, 20x1 (before the preparation of financial statements), accountant of the company considers the following adjusting entries. ABC Corporation forgets to record the 20x1 depreciation expense for a vehicle. This vehicle is acquired on April 1, 20x1 at cost of THB 60,000. The company applies straight-line method for depreciation calculation, and estimates the useful life of this vehicle of 3 years. Residual value is THB 3,000. (Adjusting entry for depreciation of the vehicle) ABC Corporation received utility bill of the December month of THB 9,000. This bill is supposed to be paid on January 15, 20x2. (Adjusting entry for accrued utility expense). ABC Corporation has not yet computed and recorded an interest expense for its loan. The company borrowed THB 400,000 from a commercial bank on December 1, 20x1. Bank charges an interest of 8.5%, and requests to pay the interest at the beginning of each month starting from January 1, 20x2. (Adjusting entry for accrued interest expense). Additional information: ABC Corporation invested in bonds of other companies. It intends to hold until the maturity date of bonds, which will be November 1, 20x6. 210,000.00 2,500.00 60,000.00 87,500.00 60,000.00 12,500.00 7,500.00 Credit 0.00 0.00 540,000.00 5,000.00 9,000.00 ABC Corporation participates in merchandising business. It starts its operation on January 1, 20x1. The company registered 25,000 shares of common stocks at par of THB 100 each. Its fiscal period starts from January 1 and ends at December 31 of each year. As at December 31, 20x1, unadjusted trial balance of the company is following. ABC Corporation Unadjusted Trial Balance As at December 31, 20x1 Ref. 101 Cash 102 Accounts receivable 106 103 104 Inventory # A 105 Inventory # B Allowance for inventory valuation Prepaid insurance expense-buildings (for the next 107 9 months) 108 Accrued interest revenue 111 Land Buildings Vehicles 112 202 Account Items 113 114 Accumulated depreciation-buildings 115 Accumulated depreciation-vehicles 116 201 203 Allowance for expected credit loss 206 Salary payable 204 Income tax payable 205 Dividends payable 301 Investment bonds of other companies Accounts payable Unearned sale revenue - Inventory # B Loan from banks (due on December 1, 20x3) Common shares (par at THB 100 each) 302 Additional paid-in capital-common shares Debit 2,368,500.00 250,000.00 60,000.00 47,500.00 50,000.00 9.000.00 700,000.00 300,000.00 100,000.00 500,000.00 Q: Prepare statement of financial position of ABC Corporation as at December 31, 20x1. Credit 12,500.00 7,500.00 22,000.00 5.750.00 100.000.00 55,000.00 6,000.00 16,450.00 20,000.00 400,000.00 2,000,000.00 1,690,000.00 Ref. 303 304 401 402 403 501 502 503 504 505 506 507 508 509 Account Items Retained earnings (as at January 1, 20x1) Dividends 510 Debit 20,000.00 Sale revenue -Inventory #A Sale revenue- Inventory #B Interest revenue Cost of goods sold - Inventory #A Cost of goods sold - Inventory #B Salary expense Utility expense Insurance expense-buildings Expected credit loss. Loss on inventory valuation Interest expense Depreciation expense Income tax expense 27,750.00 16,450.00 4,889,200.00 Totals 4,889,200.00 As at December 31, 20x1 (before the preparation of financial statements), accountant of the company considers the following adjusting entries. ABC Corporation forgets to record the 20x1 depreciation expense for a vehicle. This vehicle is acquired on April 1, 20x1 at cost of THB 60,000. The company applies straight-line method for depreciation calculation, and estimates the useful life of this vehicle of 3 years. Residual value is THB 3,000. (Adjusting entry for depreciation of the vehicle) ABC Corporation received utility bill of the December month of THB 9,000. This bill is supposed to be paid on January 15, 20x2. (Adjusting entry for accrued utility expense). ABC Corporation has not yet computed and recorded an interest expense for its loan. The company borrowed THB 400,000 from a commercial bank on December 1, 20x1. Bank charges an interest of 8.5%, and requests to pay the interest at the beginning of each month starting from January 1, 20x2. (Adjusting entry for accrued interest expense). Additional information: ABC Corporation invested in bonds of other companies. It intends to hold until the maturity date of bonds, which will be November 1, 20x6. 210,000.00 2,500.00 60,000.00 87,500.00 60,000.00 12,500.00 7,500.00 Credit 0.00 0.00 540,000.00 5,000.00 9,000.00

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