Khormuja Limited follows annual accouting period for its record keeping.

At December 31,2018 The trial Balance Khormu

SL. Account Titles Debit Credit

1 Cash 37,700
2 Accounts Receivable 111,600 Additional Data:
3 Merchandise Inventory 180,000 1. The company is under 32
4 Office Supplies 5,000 2. The interest accrued on
5 Prepaid Insurance 12,000 3. $ 0.40 Cash dividend has
6 Office Equipment 115,200 4. Depreciation @ 20% is to
7 Accumulated Depreciation-Office Equipment 49,500 However, for the Store Equ
8 Store Equipment 311,500 5. The prepaid insurance w
9 Accumulated Depreciation-Store Equipment 87,500 6. The physical inventory c
10 Patent 300,000 Required: You have to prepare
11 Accounts Payable 48,600
12 10% Bonds 54,000
13 Common Stock ($4 par value) 200,000
14 Additional Paid in Capital-Common Stock 209,800 Remember the following instru
15 Retained Earnings 345,000 1. You have to watch all the vid
16 Sales 2,703,600 2. You have to answer the ques
17 Sales Salaries Expense 378,000 3. You must do it on your own.
18 Sales Returns and Allowances 37,800 4. Your effort must be visible in
19 Sales Discount 19,800 5. Suppose your effort is clearly
20 Cost of Goods Sold 1,926,000 6. You should use the consultati
21 Advertising Expense 50,900 7. Remember one think: "Your
22 Office Salaries Expense 73,800
23 Rent Expense 102,300
24 Utlities Expense 16,500
25 Loss on Sale of Office Equipment 22,900
26 Interest Revenue 16,000
27 Auditors Fees 13,000

Total 3,714,000 3,714,000 -

18 The trial Balance Khormuja Limited contained the following account balances.

ditional Data:
1. The company is under 32.5% tax bracket.
2. The interest accrued on the Bond has not been paid yet.
3. $ 0.40 Cash dividend has been declared on each common stock.
4. Depreciation @ 20% is to be charged on Office Equipment under reducing-balance method.
However, for the Store Equipment straight line method is used where depreciation is charged @10%.
5. The prepaid insurance was paid for 2 years on September 1, 2018.
6. The physical inventory check reveals that Merhcandise Inventory actually at hand is $ 175,000.
quired: You have to prepare a multi-step income statement, Statement of Owner's Equity and Classified Balance Sheet of BBS Limited.

member the following instructions:

You have to watch all the videos related to the "Company Financial Statements" topic before attempting this assignment.
You have to answer the question in the next tab. For your convenience we have again provided you the template for answering.
You must do it on your own. Copying from other will result in severe consequences.
Your effort must be visible in your answer. The presentation of your answer must be impeccable. (For this you can follow the way shown in
Suppose your effort is clearly visible from your assignment but not all your answers are correct, still you will get a good mark.
You should use the consultation hour session if you have any confusions.
Remember one think: "Your better learning is always our priority, it is logical that this must be your priority too"
ance Sheet of BBS Limited.

s assignment.
plate for answering.

u can follow the way shown in the lecture videos)

get a good mark.
 XXX Limited
Income Statement
For the year ended December XX,20XX
Details USD
Sales Revenue
Less: Sales returns and allowance 37,800
sales Discount 19,800

Net sales Revenue

Less: Cost Of good sold 1,926,000
Add: Merchandising inventory 5,000

Total income
Less: Operating Expense
Advertising expense 50,900
Office salaries expense 73,800
Rent expense 102,300
Utility expense 16,500
Insurance expense 2,000
Sales salaries expense 378,000
Depriciation expense- Office equipment 13,140
Depriciation expense- Store equipment 31,150
Auditors fee 13,000
Total operating expense
Net Operating income
Net operating income
Interest revenue

Less: Non operating expense

Loss of Sale of office equipment
Earnings before interest and tax
Less: Interest expense
Earnings before tax
Less: Taxes
Net income

XXX Limited
Statement of Stockholder's Equity
For the year ended December XX,20XX

Explaination Common stock

 Balance January 1, 2018 200,000
Add: Net income
Less: cash devident

200,000

XXX Limited
Balance Sheet
December XX, 20XX
XX
USD
2,703,600

57,600
2,646,000

1931000
715000

680,790
34,210

16,000
50,210

22,900
27,310
5,400
21,910
7,121
14,789

Limited
ockholder's Equity
d December XX,20XX

Additional paid and capital Retained earnings total

209,800 345,000 754,800
14,789 14,789
20,000 20,000

209,800 339,789 749,589