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Required: Prepare a balance sheet/ Statement of financial position and income statement with supporting solutions

Chairmaine Company prepared the following condensed trial balance on March 31, 2019: Cash 1,000,000 Accounts receivable 2,000,000 Inventory 1,500,000 Prepaid insurance 400,000 Note receivable 5,000,000 Land 1,500,000 Buildings and equipment 18,000,000 Accounts payable 8,500,000 Share capital 5,000,000 Share premium 4,000,000 Retained earnings 9,500,000 Sales 25,000,000 Purchases 17,000,000 Distribution costs 3,200,000 Administrative expenses 2,400,000 Additional information: 1. Uncollectible accounts typically average 1% of net sales. 2. On Jan 1, 2019, buildings and equipment have an average remaining life of 10 years. One-third of the account balance consists of assets related to selling activities. The entity uses the straight line method. . 3. The note receivable is dated January 1, 2019, matures on January 1, 2021, and carries a 12% interest rate. Interest will be collected annually starting January 1, 2020. 4. On January 1, 2019, the entity had purchased a one-year insurance policy debiting the payment to prepaid insurance 5. The gross profit method is used to determine the interim inventory. Gross profit has averaged 40% of net sales. 6. The income tax rate is 30% and the income tax will be paid on or before April 15, 2019

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