Questions:
(a) Without narrations, or cross references, prepare journal entries for events 1 - 14 in the text, but incorporate the following:
i. For event #1, assume that the "sales taxes" consist of non-refundable import taxes.
ii. For event #8, assume that the company has decided to switch to the declining balance method using a rate of 30%.
iii. For event 10, you may credit Patents. (Note that events 4-14 are AJEs.)
(b) In addition to events 1 -14 above, prepare journal entries for events 15 and 16 below. Note that these new accounts were created for the general ledger: Inventory Write-down Loss; OCI Gain/Loss on Revaluation, Land; OCI Gain/Loss on Revaluation, Building; Gain/Loss on Revaluation, Land; Gain/Loss on Revaluation, Building, and Revaluation Reserve.
15) The Revaluation Model was adopted for the Land, which was re-valued to $30,000, and for the Building, which was revalued to $100,000.
16) The $36,200 of Merchandise Inventory includes several classes of merchandise. One of these classes, with a cost of $12,000, has suffered a loss in market value such that its net realizable value is now estimated at $10,000. This "class" was not part of the inventory sold in event #3.
(c) A Statement of Comprehensive Income for the year, in the form and format prescribed in this course. Even though a GL is not required, make sure that all of your balances are updated prior to preparing your financial statements.
(d) A Balance Sheet as at 31 December 2017, also in the form and format prescribed in this course. Even though closing entries are not required, assume that they were journalised and posted so that the general ledger balances are correct for the Balance Sheet.
CP9 Raymond Company's trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below and on page 473 Debit E 28,000 Credit Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Eauipment 36,800 36,200 4,400 20,000 160,000 60,000 8,000 49,000 24.000 Debit Credit Accounts Payable Income Taxes Payable Salaries and Wages Payable Unearned Rent Revenue Notes Payable (due in 2018) Interest Payable Notes Payable (due after 2018) Share Capital-Ordinary 28,300 6,000 11,000 35,000 50,000 63,600 Dividends Sales Revenue Interest Revenue Rent Revenue Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 12,000 910,000 630,000 61,800 10,000 1,77,200 1,177,200
