Asset Liability Equity

Owner capital + Retained Earnings

Profit - Deviden - drawings

revenue - expense

S1-6

Split Second Wireless Inc. Brazoz Medical Inc

Income Statement Statement of Cash flow
For the year ended 2020 For the year ended 2020
cash flows from operating activities
Revenue 90,000 net income
cash provided by operating activities
Expense 20,000
cash flows from investing activities
Net Income 70,000 equipment
cash used investing activities

S1-7 cash flows from financing activities

Mondala Ltd. long term debt
Statement of Retained Earnings paying deviden
For the year ended 2020 cash provided by financing activities

Beginning Retained earnings 200 net inflow of cash

net income 100 beginning cash
300 ending cash, end of period
deviden 40
ending balance retained earnings 260

S1-8
Skate Sharp Limited
Balance Sheet
For the year ended 2020
Asset Asset
Current Assets cash acc Rec
Cash 13,000
Acc Receivable 2,000
Inventory 40,000
Total Current Asset 55,000

Non Current Assets

Equipment 75,000
total non-current asset 75,000
other assets 10,000

total Asset 140,000

Liability
Current Liability
account payable 10,000
short-term notes payable 5,000
total current liabilities 15,000

non-current liabilities
long term debt 70,000
total non current liabilities 70,000

total liability 85,000

Equity
Shared capital 15,000
retained earning
total Equity 15,000

total Liability and Equity 100,000

 Retained Earnings

ofit - Deviden - drawings

venue - expense

Brazoz Medical Inc

Statement of Cash flow
For the year ended 2020
m operating activities

by operating activities (20,000)

m investing activities
300,000
sting activities

m financing activities
150,000
15,000
by financing activities 165,000

24,000
nd of period 469,000

Asset liabilities
 account long term owners
inventory supplies equipment payable debt capital drawings
Equity
 revenue expense
sales revenueservice reve ad exp supplies exp depreciation income tax interest tax
PQ4-7
Split Second Wireless Inc.
Income Statement
For the year ended 2020
Revenue cash flows from operatin
Service revenue 89,000

Operating expense
travel expense 8,950 cash provided by operati
rent expense 21,600
wages expense 18,500 cash flows from investin
advertising expense 6,000
insurance expense 2,400 cash used investing activ
Supplies expense 1,750
total operating expense 59,200 cash flows from financin
profit before interest and tax 29,800
Interest expense 7,120
income tax expense 1,320
profit 21,360 cash provided by financin

net inflow of cash

Mondala Ltd. beginning cash
Statement of Retained Earnings ending cash, end of perio
For the year ended 2020
Opening Retained Earnings 10,989
Add Profit 21,360
Deduct Devidends 19,250
Closing retained earnings 13,099

Skate Sharp Limited

Balance Sheet
For the year ended 2020
Assets
Current Assset
Cash, end of period 16,289
Account Receivable 6,950
supplies 450
 Prepaid rent 3,600
prepaid insurance 2,400
Total current assets 29,689

Non Current Asser

Equipment 20,000
Patent 15,770
Business licence 480
Total non current asset 36,250
total asset 65,939

Liabilities
Current Liabilities
Accounts payable 2,840
Fees received 3,500
Income tax payable 5,000
total current liabilities 11,340

Non curent Liabilities

loan payable 12,000
total liabilities 23,340

Equity
Owner's capital 29,500
Closing retained earnings 13,099
total Equity 42,599

total liability and equity 65,939

 Brazoz Medical Inc
Statement of Cash flow
For the year ended 2020
sh flows from operating activities
Cash receipts from customers 83,200
Cash payments to suppliers 58,511
cash paid for interest 1,320
sh provided by operating activities 23,369

sh flows from investing activities

Purchase intangibles (15,770)
sh used investing activities (15,770)

sh flows from financing activities

Capital contributions by owners 12,000
Cash received from debt 8,000
cash paid to for deviden 19,250
sh provided by financing activities 750

et inflow of cash 8,349

eginning cash 7,940
nding cash, end of period 16,289
No Account Debet Kredit General Ledger - Asset
1 cash 40,000 Cash account p
owners capital 40,000 no Debet no Credit no
2 business lisence 60 1 40,000 6 1,944 16
acc payable 60 21 20,564 10 1,100 27
4 supplies 800 13 690 30
interest expnse 104 16 22,932 30
acc payable 904 30 4,625
6 prepaid insurance 1,944 30 964
cash 1,944 60,564 32,255
8 no trans Balance 28,309
9 inventory 23,400
acc payable 23,400 Acc Receivable Owner's
10 Inventory 1,100 no Debet no Credit no
cash 1,100 12 26,500 17 5,300
12 acc receivable 26,500 21 21,200
COGS 14,575 26,500 26,500
sales revenue 26,500 Balance -
inventory 14,575
13 freight expense 690 supplies Sales Re
cash 690 no Debet no Credit no
16 acc payable 23,400 4 400 30 400
cash 22,932 400 400
inventory 468 Balance -
17 sales return 5,300
inventory 2,915 Inventory
acc receivable 5,300 no Debet no Credit Sales R
COGS 2,915 9 23,400 12 14,575 no
21 cash 20,564 10 1,100 16 468 17
sales discount 636 17 2,915 27 4,625
acc receivable 21,200 24 9,250
24 inventory 9,250 36,665 19,668
acc payable 9,250 Balance 16,997
25 no transaction sales dis
27 acc payable 4,625 Prepaid Insurance no
inventory 4,625 no Debet no Credit 21
30 acc payable 4,625 6 1,944 30 162
cash 4,625 1,944 162
30 supplies expense 575 Balance 1,782
supplies 575
30 insurance expense 162 Business License
prepaid insuranse 162 no Debet no Credit
30 acc payable 964 2 60
 cash 964 60 -
Balance 60
TOTAL 182,189 182,189
General Ledger - Liabilities General Ledger - Equity - Expense Trial Balanc
account payable Interest expense
Debet no Credit no Debet no Credit
23,400 2 60 4 104
4,625 4 904 104 -
4,625 9 23,400 Balance 104
964 24 9,250
27 4,625 General Ledger - Equity - Expense
33,614 38,239 freight expense
Balance 4,625 no Debet no Credit
13 690
General Ledger - equity 690 -
Owner's capital Balance 690
Debet no Credit
1 40,000 General Ledger - Equity - Expense
- 40,000 Supplies Expense
Balance 40,000 no Debet no Credit
30 575
General Ledger - equity 575 -
Sales Revenue Balance 575
Debet no Credit
12 26,500 General Ledger - Equity - Expense
- 26,500 Insurance Expnse
Balance 26,500 no Debet no Credit
30 162
General Ledger - equity 162 -
Sales Return Balance 162
Debet no Credit
5,300 General Ledger - Equity - Expense
5,300 - Cost of Good Sold
Balance (5,300) no Debet no Credit
12 14,575 17 2,915
General Ledger - equity 14,575 2,915
sales discount Balance 11,660
Debet no Credit
636
636 -
Balance (636)
 Trial Balance
Account Debit Credit
Cash 28,309
Acc Receivable 0 500,000
Supplies 0 400,000 10
Inventory 16,997 40,000 120
Prepaid Insurance 1,782 3,333 4,167
Business License 60
Account Payable 4,625
Owner's Capital 40,000
Sales Revenue 26,500
Sales Return (5,300)
Sales Discount (636)
Interest Expense 104
Freight expense 690
Supplies Expense 575
Insurance Expense 162
Cost of Good sold 11,660
TOTAL 60,339 65,189
1,400,000,000
15
180
7,777,778
bank balance balance 2,500
cheque

36,923 8,000,000
41,760 8,000,000 0 90 160,000
8,280,000 0
4,657,500 652,050

60,600

280,000

1-Apr 500,000 beginning

80,000 residual

20 years 420,000
year 21,000
presentage 5%

straight line 21,000 annual

60,000 10 years 7th

annual dept 6,000 7,800 annual depresiation

4th 24,000 13%

3th 18,000 1.33
42,000
18,000

60,000
36,000 12,000.00 6,000
24,000
12,000 4,000
Questions
1 6%, $100 par value cumulative preferred stock, 50.000 share authorized, issued,and outstanding
Devidend payable semiannually, no devidends in arrears. Semi annual preffered devidend amount:

$ 300,000 $ 150,000

2 $4.50, $75 par value cumulative preferred stock, 50.000 shares authorized and issued.
40.000 shares outstanding (there are 10.000 shares of treasury stock)
Devidend payable quarterly, no dedivends in arrears. Quarterly preffered stock:

3 8%, $50 par value cumulative preferred stock, 100.000 share authorized, 60.000 issued,and 54.000 out
(there are 6.000 shares of treasury stock). Devidend payable annually. Devidends were not paid in prio
devidends required in current year to pay devidends in arrears and current year's preferred deviden:

Equity 0

retained earnings

net income deviden 0

 issued,and outstanding
effered devidend amount:

ed and issued.

60.000 issued,and 54.000 outstanding

evidends were not paid in prior two year
ent year's preferred deviden: