Ron Abrams has come into your office for his weekly 1 on 1 in which you...

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Ron Abrams has come into your office for his weekly 1 on 1 in which you update him on your weekly progress on your projects. He has arrived with a stack of paperwork in his hands and a befuddled look on his face. You ask what's going on and he responds as follows. "Last year, as you know, we purchased a bankrupt, closed down. bottling facility in The Ukraine. I don't know if you know this but in countries other than Canada they are using somewhat different accounting policies than we do, and the reports I have for the first few months of operations for that location look nothing like anything I have seen before. I'm aware that the company made no money this month as it's had no sales or operations, but I cannot understand our capital position. I'm leaving you with a new project. I know you've been learning accounting so I want you to take the opening information for the business from the date of purchase and come up with the balance sheet as it should appear to me as a Canadian Reader." You are somewhat puzzled with this new challenge, yet flattered at the same time, and agree to take it on. Given: The newly purchased firm was bought on November 1. At inception the balance sheet accounts of the firm were as follows: Account Name Accounts Payable Accounts Receivable Land Building Equipment Cash Notes Payable $ 85,000 67,000 490,000 320,000 175,000 2,200 60,000 Account Name Bonds Payable (Over 1 Year) Share Capital Furniture and Fixtures Wages Payable Bottle Processing Patent Fee's Payable Taxes Payable Bottle Inventory $ 45,000 936,200 15,000 55,000 25,000 58,000 195,000 During the month of November the following transactions occurred: Accounts Receivable for $16,000 was collected. Wages due of $15,000 were paid out in cash $175,000 in Equipment was purchased on credit ($100 was due on delivery and was paid in cash). Focus 71 Their land was appraised and found to be worth $560,000. A stakeholder, Bruce Wayne, provided the company with equipment and in return received $65,000 in shares. $300,000 in shares was retired for bonds payable on December 15, 2025. Bottle Processing Patent Fees were paid completely out on Credit. $175,000 in Old Bottles was returned to the former supplier for their cash value. A bank loan for $65,000 was taken out. The amount was kept in cash over the end of the month. Required: Create a Balance Sheet for November 30th assuming no other transactions occurred for the month other than those noted above. I 1-Conversion to Canadian Balance Sheet and T-Accounts (17 marks) 2- Final Balance Sheet (23 Marks) Ron Abrams has come into your office for his weekly 1 on 1 in which you update him on your weekly progress on your projects. He has arrived with a stack of paperwork in his hands and a befuddled look on his face. You ask what's going on and he responds as follows. "Last year, as you know, we purchased a bankrupt, closed down. bottling facility in The Ukraine. I don't know if you know this but in countries other than Canada they are using somewhat different accounting policies than we do, and the reports I have for the first few months of operations for that location look nothing like anything I have seen before. I'm aware that the company made no money this month as it's had no sales or operations, but I cannot understand our capital position. I'm leaving you with a new project. I know you've been learning accounting so I want you to take the opening information for the business from the date of purchase and come up with the balance sheet as it should appear to me as a Canadian Reader." You are somewhat puzzled with this new challenge, yet flattered at the same time, and agree to take it on. Given: The newly purchased firm was bought on November 1. At inception the balance sheet accounts of the firm were as follows: Account Name Accounts Payable Accounts Receivable Land Building Equipment Cash Notes Payable $ 85,000 67,000 490,000 320,000 175,000 2,200 60,000 Account Name Bonds Payable (Over 1 Year) Share Capital Furniture and Fixtures Wages Payable Bottle Processing Patent Fee's Payable Taxes Payable Bottle Inventory $ 45,000 936,200 15,000 55,000 25,000 58,000 195,000 During the month of November the following transactions occurred: Accounts Receivable for $16,000 was collected. Wages due of $15,000 were paid out in cash $175,000 in Equipment was purchased on credit ($100 was due on delivery and was paid in cash). Focus 71 Their land was appraised and found to be worth $560,000. A stakeholder, Bruce Wayne, provided the company with equipment and in return received $65,000 in shares. $300,000 in shares was retired for bonds payable on December 15, 2025. Bottle Processing Patent Fees were paid completely out on Credit. $175,000 in Old Bottles was returned to the former supplier for their cash value. A bank loan for $65,000 was taken out. The amount was kept in cash over the end of the month. Required: Create a Balance Sheet for November 30th assuming no other transactions occurred for the month other than those noted above. I 1-Conversion to Canadian Balance Sheet and T-Accounts (17 marks) 2- Final Balance Sheet (23 Marks)

Answer rating: 100% (QA)

SOLUTION 1 Conversion to Canadian Balance Sheet and TAccounts To convert the balance sheet to a Canadian format we need to reorganize the accounts into three categories assets liabilities and equity W... View the full answer