CHART OF ACCOUNTS

Code Account Name

1001 Cash
1002 Accounts Receivable
1003 Supplies
1004 Prepaid Insurance
1005 Equipment
1006 Accumuated Depreciation - Equipment
2001 Accounts Payable
2002 Interest Payable
2003 Unearned Service Revenue
2004 Notes Payable
3001 Share Capital - Ordinary
3002 Retained Earnings Ledger
3003 Dividends
4001 Service Revenue Cash 1001
5001 Utilities Expense 600 70
5002 Advertising Expense 2000 130
5003 Supplies Expenses 500 900
5004 Depreciation Expense 35 1300
5005 Interest expense
735
General Journal

Trans. Description Reff Dr Cr Prepaid Insurance 1004

10-Mar Cash 600 1300
Share capital 600
12-Mar Advertising expense 70
Cash 70
13-Mar Supplies 130
Cash 130
15-Mar Equipment 320
Share capital 320 Account Payable 2001
20-Mar Cash 2000
Notes payable 2000
22-Mar Equipment 900
Cash 900
25-Mar Cash 500
Service revenue 500
27-Mar Cash 35
Unearned revenue 35 Notes Payable 2004
31-Mar Prepaid insurance 1300 2000
Cash 1300
PT
INDOFOOD
Trial Balance
31-Mar-20
Debit Credit
Cash 360
Supplies 130 Dividend 3003
Prepaid Insurance 1300
Equipment 1220
Unearned Service Revenue 35
Notes Payable 2000
Share Capital - Ordinary 920
Service Revenue 500
Advertising Expense 70
Total 3080 3455 Advertising Expense 5002
70
 Adjusting Entries PT INDOFOOD
Statement of Financial P
Date Description Reff Dr Cr March 31, 2020
31-Mar Supplies expense 35 Assets
Supplies 35
Property, plant, and equipment
31-Mar Depreciation expense 30 Equipment
Accumulated depreciation 30 Less: Accumuated depreciation
Interest Expense 5005 Current Assets
31-Mar Interest expense 5 Prepaid Insurance
Interest payable 5 Supplies
Account Receivable
31-Mar Account receivable 300 Cash
Service revenue 300 Total Current Assets
Total Assets
31-Mar Utilities expense 50
Acc. Receivable 1002 Supplies 1003 Account payable 50 Equity and Liabiliti
Equity
Share Capital - Ordinary
PT INDOFOOD Retained Earning
Adjusted Trial Balance Non Current Liabilities
31-Mar-20 Notes Payable
Debit Credit Current Liabilities
Cash 360 Account payable
Accounts Receivable 300 Interest Payable
Acc. Depreciation
Equipment 1005 -Equipment 1006 Supplies 130
320 Prepaid Insurance 1300 Unearned service revenue
900 Equipment 1220 Total Current Liabilities
Accumulated Depreciation - Equipment 30 Total Liabilities
Accounts Payable 45 Total Equity and Liab
Interest Payable 5
1220 Unearned Service Revenue 35
Notes Payable 2000 Closing Entries
Interest Payable 2002 Unearned Revenue 2003 Share Capital - Ordinary 920
35 Retained Earnings Date Description
Dividends 31-Mar Service Revenue
Service Revenue 500 Income Summary
Utilities Expense 50
Advertising Expense 70 Income Summary
Supplies Expenses 35 Utilities Expense
Depreciation Expense 30 Advertising Expen
Share Capital- Ordinary 3001 Retained Earning 3002 Interest expense 5 Supplies Expense
600 Total 3500 3535 Depreciation Expe
320 Interest expense
PT INDOFOOD
Income Statement
March 31 2020 31-Mar Income Summary
920 Retained Earning
Revenue
Service Revenue 4001 Utilities Expense 5001 Service Revenue 500
500 Expenses PT INDOFOOD
Utilities Expense 50 Post Closing Trial Bal
Advertising Expense 70 March 31 2020
Supplies Expense 35
Depreciation Expense 30 Cash
Interest expense 5 Accounts Receivable
Depreciation Expense Supplies
Depreciation
Supplies Expense 5003 Expense 5004 Interest expense Prepaid Insurance
Total Expense 190 Equipment
Net Income 310 Accumulated Depreciation - Equipm
Accounts Payable
Salaries and Wages Payable
PT INDOFOOD Interest Payable
Retained Earnings Statement Unearned Service Revenue
March 31 2020 Notes Payable
Retained earnings, November 1 0 Share Capital - Ordinary
Add: Net Income 310 Retained Earnings
Less: Dividends 0
Retained earnings, December 31 310
 T INDOFOOD
t of Financial Position
March 31, 2020
Assets

quipment
1220
d depreciation 30 1190

1300
130
300
360
rent Assets 2090
l Assets 3280

ty and Liabilities

Ordinary 920
310

2000

45
5

e revenue 35
nt Liabilities 85
iabilities 2050
quity and Liabilities 3315

Reff Dr Cr
500
ome Summary 500

180
ities Expense 50
vertising Expense 70
pplies Expenses 35
preciation Expense 20
erest expense 5

310
ained Earnings 310

T INDOFOOD
osing Trial Balance
March 31 2020
Debit Credit
360
300
130
1300
1220
ation - Equipment 30
45
ayable 0
5
30
2000
920
310
3310 3340
 Given Information from case

2014 Investment $ 32,000

Plant Assets (net) $ 81,000
Land $ 40,000
Accounts Receivable $ 21,200
Cash $ 20,000
$ 194,200
Share Capital-Ordinary $ 100,000
Retained Earnings $ 23,200
Bonds Payable $ 41,000
Accounts Payable $ 30,000
$ 194,200

2015 Investments Sold at a Loss of $ 8,000

Cash $ 70,200
Account Receivable $ 42,000
Account Payable $ 40,000
Net Income $ 35,000
Depreciation Expense (10%) $ 8,100

Answer
LUO INC.
Statement of Cash Flows
December 31 2015
Cash flows from operating activities
Net income
Adjustment to reconcile net income to net
cash provided by operating activities:
Depreciation expenses $ 8,100.00
Loss on sale of investments $ 8,000.00
Increase in Account Payable $ 10,000.00
Increase in Account Receivable $ (20,800.00)
Net cash provided by operating activities
Cash flows from investing activities
Sale of investments $ 24,000.00
Purchase of land $ (35,000.00)
Net cash used by investing activities
Cash flows from financing activities
Insuance of Ordinary Shares $ 35,000.00
Payment of Cash Dividends $ (15,000.00)
Net Cash Provided by Financing Activities
Net increase in cash
Cash at beginning of year
Cash at end of year

LUO INC.
Statement of Financial Position
31-Dec-15
Assets
Plant Assets (net)
Land
Account Receivable
Cash
Equity and Liabilities
Share Capital - Ordinary
Retained Earnings
Bonds Payable
Account Payable

Free Cash Flow Analysis

Net cash provided by operating activities
Less: Purchase of equipment
Dividends
Free Cash Flow

Overal, it appears that its liquidity position is not very strong and overall financial flexibility os
$ 35,000.00

$ 5,300.00
$ 40,300.00

$ (11,000.00)

$ 20,000.00
$ 49,300.00
 $ 20,000.00
$ 69,300.00

$ 72,900
$ 40,000.00
$ 42,000
$ 69,300.00

$ 135,000.00
$ 73,200.00
$ 76,000.00
$ 40,000

$ 40,300.00
$ (35,000.00)
$ (15,000.00)
$ (9,700.00)

nd overall financial flexibility os strained