ACCT 4200 - INTERMEDIATE ACCOUNTING - PROJECT (Winter 2022)

Name:

Student Number:

Included in this file are the following tabs: Required Points

1 Trial Balance Columns H and I of the worksheet 24.00
2 Financial Statements Columns J-M of the worksheet and financial statements 60.00 Submission 1 59.00
3 Journal Entries Prepare journal entries required 33.00 Submission 2 24.00
4 Cash & Equivalents For information only - Submission 3 60.00
5 FV-NI Investments Perform calculations needed to adjust the investments 2.00
6 Trade Accounts Receivable Calculate the bad debt/allowance for dourbful accounts 4.00
7 Inventory Detail Make any adjustment necessary to inventory 3.00
8 Fixed Asset Details Record depreciation and make any adjustments 8.00
9 FV-OCI Investments Record sale and make any adjustments needed 2.00
10 Intangible Assets Record amortization expense 2.00
11 Payroll Details Calculate the amount of wage accrual needed 3.00
12 Revenue Recognition Determine the amount of revenue to be recorded 2.00
13 Sales Detail For information only -

TOTAL 143.00
 Trial Balance Trial Balance Adjusted
At December 31, 2019 At December 31, 2020 Adjustments Trial Balance Income Statement Balance Sheet
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash & Equivalents 197,282 1,664,544
FV-NI Investments - 801,300
Accounts Receivable - Trade 4,138,222 4,375,772
Accounts Receivable - Projects - 1,510,000
Allowance for Doubtful Accounts (Trade) 126,508 126,508
Inventory 949,578 1,013,800
Prepaid Insurance 240,000 480,000
FV-OCI Investments - 212,000
Contract Asset/Liability 121,880
Land 640,000 640,000
Building 6,300,000 6,300,000
Building - Accumulated Depreciation 137,000 137,000
Equipment 785,080 785,080
Equipment - Accumulated Depreciation 91,592 91,592
Intangible Assets (net) - 323,500
Goodwill 675,000 1,350,000
Accounts Payable 850,000 956,000
Deferred Tax Liability 200,000 204,000
HST Payable 89,100 196,000
Interest Payable 200,000
Dividends Payable 350,000
Wages Payable 90,000
Notes Payable - 500,000
Bank Loan 5,000,000 8,000,000
Common Stock 4,000,000 4,000,000
Retained Earnings 389,224 3,376,862
Revenue from Long-term Contract 6,332,898
Revenue from Long-term Contract - Project #1 - -
Sales Revenue - Equipment 11,371,380 13,724,150
Dividend Income - 65,000
Interest Income 31,000
Gain on sale of truck
Investment Income or Loss
Unrealized Gain or Loss - OCI
Cost of Goods Sold 7,434,800 8,826,400
Construction Expenses 4,820,200
Construction Expenses - Project #1 - -
Equipment Rental (other expenses) 1,050,000 994,188
Equipment Repairs (other expenses) 85,286 204,868
Wages 1,318,000 -
Payroll Tax Expense 164,750 -
Interest Expense 20,000 20,000
Utilities 104,000 126,000
Insurance Expense 82,000
Bad Debt Expense 46,112 -
Commission Expense -
Advertising Expense 14,916 32,800
Amortization Expense -
Depreciation Expense 193,476 -

TOTALS $ 29,258,702 $ 29,258,702 $ 29,782,132 $ 31,377,112

0 1,594,980
Net Income (Loss)
TOTAL

0
 Aylmer Industries Inc.
Statement of Comprehensive Income
For the Year Ended December 31, 2020

2020 2019
Revenue
Cost of Goods Sold
Construction Expenses
Gross Profit
Administrative Expenses
Other Expenses
Income from Operations

Other Revenues and Gains

Dividend Income
Gain on Sale
Investment Income

Other Expenses and Losses

Interest Expense

Net Income

Other Comprehensive income

Earnings Per Share

Aylmer Industries Inc.

Statement of Retained Earnings
For the Year Ended December 31, 2020

Balance, January 1, 2020

Add: net income

unrealized Gain or loss
Deduct: dividends declared
Balance, December 31, 2020

Aylmer Industries Inc.

Statement of Financial Position
At December 31, 2020

ASSETS
Current Assets
Cash and Cash Equivalents 1
Short-Term Investments 2
Accounts Receivable (net) 3
Inventories, net 4
Prepaid and other current assets 5
Total Current Assets

Other Long-term Assets 6

Property and equipment (net) 7
Intangible Assets, net 8
Goodwill 9
TOTAL ASSETS

LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities
Other current liabilities
Deferred taxes
Current portion of long term debt
Total Current Liabilities
Long Term Debt
Total Liabilities

SHAREHOLDERS EQUITY
Common Stock
Retained Earnings
Accumulated Other Comprehensive Income
Total Shareholders' Equity
TOTAL LIABITILIES & SHAREHOLDERS' EQUITY
DATE REF ACCOUNTS Debit Credit
a)

a) Investments-redemption corporation 189,750

To Cash 189,750
( to record prchase of 15000 shares @ 12.65 per share)

b) Investment - ALM crop 210,900

To Cash 210,900
( To record the purchase of 10000 share @ 21.09 per share of ALM crop)

c) Unrealized loss on investment

To Valuation allowance for investment 300
( To record the unrealized loss on investment in Reemption corp. ) 300

d) Valuation allowance for investment 28,900

To Unrealized gain on investment 28,900
( to record the unrealized gain on investment in ALM corp. )

e) Insurance Expense A/c Dr. 300

To Pre paid Insurance a/c 300
( insurance paid in advance )

f) Closing stock a/c Dr. 498,470

To COGS 498,470
( valuation closing stock )

g) Cash a/c 225,000 (20000 shares * $11.025 per share)

To Investment in shares 212,000 (20000 shares * $11 per share)
To gain on sale 13,000 ( 20000 shares * $ 0.25 per share)
( to record sale of shares in Hub cap compay)

Retained Earning A/c 13,000

To Gain on sale 13,000
( to transfer gain sale to retained earnings)
h)

h) cash a/c 800,000

To Bank loan payable 800,000
( to loan amount payable)

i) Cash 275,000
To Note payable 275,000
( To record cash borrowed by signing note)

Note payable a/c 275,000

k) interest payable a/c 1,100
interest expense a/c 550
To cash a/c 276,650
( To record note repaid at maturity )
l) Amortization Expense A/c 300,000
To Patent a/c 300,000

m) Retained Earning a/c 131,250

To dividend payable a/c 131,250
( dividend paid to retained earning)

Dividend Payable a/c 131,250

To Cash a/c 131,250
Petty Cash 1,100
Bank of Montreal - Chequing - 20,652
Bank of Montreal - Deposit 253,800
Royal Bank - Chequing 171,296
Short-term paper 390,000 7 month paper @3.5% interest with Hilo Investments
Short-term paper 69,000 45 day paper @2.25% interest
Restricted Cash 800,000 set aside for bank loan - have to maintain 10% of bank loan payable in restricted cash per agreement

1,664,544
Note Payable 275,000
 Purchase
Date Description COST
6/15/2020 30,000 shares of Redemption Corp @ $12.65 per share 379,500.00 30000 shares
12/05/2020 20,000 shares of ALM Corp @ $21.09 per share 421,800.00 20000 shares
801,300.00

Dec 31,
Total purchased cost of Investment-redemption corporation 189,750
2020
Less:- Fair value of investment (15,000 shares @12.63 per
189,450
share)
Unrealized loss on investment $300

Dec 31,
Total purchased cost of Investment-redemption corporation 210,900
2020
Less:- Fair value of investment (10,000 shares @23.98 per
239,800
share)
Unrealized gain on investment $28,900
Customer Name Total Due 0-30 Days 31-60 days 61-90 days 91-120 days Over 120

4210119 Ont Ltd 522,362 311,788 100,398 100,188 9,988 -

43rd Street Place 13,250 12,988 262 - -
6 Star Services 131,350 62,620 61,398 - 7,332 -
9900 International Corp 281,584 181,962 99,622 - - -
A1 Distributions 261,468 131,888 125,804 1,888 1,888 -
Aylmer Enterprises 275,636 269,172 - 6,464 - -
Booktime Services 199,594 199,286 - - 308 -
Box Top Inc 98,098 26,062 26,062 26,062 19,912 -
Briar Forest Corp 5,884 2,886 2,998 - - -
Cavhill Industries 244,446 123,998 120,226 - 222 -
Colborne Corp 2,626 2,626 - - - -
Copper Gallery 24,072 - - - - 24,072
Dairy Ashford Corp 32,998 32,998 - - - -
Demilo Inc 166,672 73,570 79,882 13,220 - -
Dustin Enterprises 381,622 128,904 128,322 121,288 - 3,108
Greenway Place 209,746 143,096 63,322 3,328 - -
Grosvenor Limited 85,754 71,688 14,066 - - -
Houston Consultants 96,928 2,638 21,398 72,892 - -
Jesse Blackstone 45,360 19,692 19,692 2,988 2,988 -
Joseph Company 202,814 63,198 73,020 65,298 1,298 -
Lawrence Brothers 117,122 37,692 39,688 38,920 822 -
Mapleton Express 38,096 37,872 - 224 - -
OKC Limited 46,752 19,712 19,712 7,328 - -
Oxford Distributing 41,070 19,768 21,302 - - -
Paper Brands 211,580 25,272 19,328 73,888 93,092 -
Plaid Corp 77,262 25,000 25,000 25,000 262 2,000
Quality Logistics 49,130 4,262 4,472 4,132 3,382 32,882
TC Jester 201,330 99,332 99,332 2,666 - -
Wellington Limited 276,288 130,956 145,332 - - -
Westella Drive LTD 28,820 13,888 12,822 2,110 - -
Woodplank Inc. 2,130 - - - - 2,130
Yellow Street Ltd 2,656 1,328 1,328 - - -
Zephyr Limited 1,272 636 636 - - -

TOTAL 4,375,772 2,276,778 1,325,424 567,884 141,494 64,192

 Item # Description Cost Selling Price Selling costs
7%
14566SA X205 30 HP Machine 27,000.00 63,250.00 4,427.50
145669A X205 30 HP Machine 27,000.00 63,250.00 4,427.50
147502A X205 30 HP Machine 27,000.00 63,250.00 4,427.50
147503A X205 30 HP Machine 27,000.00 63,250.00 4,427.50
147504A X205 30 HP Machine 27,000.00 63,250.00 4,427.50
360010X G350 60 HP Machine 71,800.00 95,800.00 6,706.00
360011X G350 60 HP Machine 71,800.00 95,800.00 6,706.00
360012X G350 60 HP Machine 71,800.00 95,800.00 6,706.00
360013X G350 60 HP Machine 71,800.00 95,800.00 6,706.00
598750W L500 100HP Machine 197,200.00 206,000.00 14,420.00
598751W L500 100HP Machine 197,200.00 206,000.00 14,420.00
598752W L500 100HP Machine 197,200.00 206,000.00 14,420.00
1,013,800.00

: i)First we need the cost of Inventory , which is in

Cost Column.

ii) Find NRV = SP – Selling cost = 31625 –

(31625*7%) = 31625 -2213.75 = 29411.25

iii) Take Step (i) or (ii) w.e. Lower , Item by Item

basis NOT on aggregate basis.

STOCK
Selling Cost NSP/NRV(B=B1- VALUE (A
Item # Cost(A) SP(B1)
@7%(B2) B2) OR B
W.E.L.)
14566SA 13500 31625 2213.75 29411.25 13500
145669A 13500 31625 2213.75 29411.25 13500
147502A 13500 31625 2213.75 29411.25 13500
147503A 13500 31625 2213.75 29411.25 13500
147504A 13500 31625 2213.75 29411.25 13500
360010A 35900 47900 3353 44547 35900
360011A 35900 47900 3353 44547 35900
360012A 35900 47900 3353 44547 35900
360013A 35900 47900 3353 44547 35900
598750W 98600 103000 7210 95790 95790
598751W 98600 103000 7210 95790 95790
598752W 98600 103000 7210 95790 95790
TOTAL
CLOSING 498470
STOCK
 Accumulated Depreciation Accumulated
Asset Acquisition Useful Depreciation Expense Depreciation Adjustments
Category Number Description Date Life (Yrs) Cost to 12/31/19 2020 to 12/31/20 to 12/31/20 NBV

Land 1 acre - 11th Line 05/31/19 200,000.00 -

401 Main Street 09/01/18 400,000.00 -
.5 acre 402 Main Street 09/01/18 40,000.00 -
640,000.00 -

Building
2018-01 401 Main Street 09/01/18 40 4,110,000.00 137,000.00
2020-02 406 Main Street 05/01/20 40 2,190,000.00
6,300,000.00 137,000.00

Equipment
2018-02 Toro lawn mower 02/01/18 4 59,850.00 28,678.13
2018-05 2007 John Deere Excavator 09/01/18 10 94,200.00 12,560.00
2019-10 2018 Chev Truck 03/01/19 4 77,200.00 16,083.33
2019-11 2010 Toyota Tundra 05/31/19 6 37,500.00 3,645.83
2019-12 2017 Kenworth 07/31/19 6 441,000.00 30,625.00
2020-13 2015 Loader 08/01/20 10 50,730.00
2020-15 Flat-bed Trailer 12/01/20 10 24,600.00
2020-16 Ford F150 12/31/20 10 - -
785,080.00 91,592.29

TOTAL $ 7,725,080.00 $ 228,592.29

(e) Record the Depreciation:

Accumalated   Depreciation Accumalated  
Asset Acquisition Useful Depreciation Expense Depreciation Adjustments
Category Number Depreciation Date Life (yrs) Cost to 12/31/19 2020 to 12/31/20 to 12/31/20 NBV

102,750.00
Building 2018-01 401 main Street 1/9/2018 40 4,110,000.00 137,000.00 239,750.00 3,870,250.00
(4,110,000/40)
36,500.00
2020-02 406 Main street 1/5/2020 40 2,190,000.00 NA 36,500.00 2,153,500.00
-2,190,000
6,300,000.00 137,000.00 139,250.00 276,250.00 6,023,750.00

14,962.50 16,209.37
Equipment 2018-02 Toro Lawn Mowe 1/2/2018 4 59,850.00 28,678.13 43,640.63 0
(59,850/4) (59,850 - 43
9,420.00
2018-05 2007 john deere 1/9/2018 10 94,200.00 12,560.00 21,980.00 72,220.00
(94,200/10)
19,300.00
2019-10 2018 chev truck 1/3/2019 4 77,200.00 16,083.33 35,383.33 41,816.67
(77,200/4)
6,250.00
2019-11 2010 Totato tund05/31/19 6 37,500.00 3,645.83 9,895.83 27,604.17
(37,500/6)
73,500.00
2019-12 2017 kenworth 07/31/19 6 441,000.00 30,625.00 104,125.00 336,875.00
(441,000/6)
2,113.75
2020-13 2015 loader 1/8/2020 10 50,730.00 2,113.75 48,616.25
(50,730/10)*5/12
205
2020-15 Flat Bed Trailer 1/12/2020 10 24,600.00 205 24,395.00
(24,600/10)*1/12
2020-16 Ford F150 12/31/20 10 24,000.00 0 0 24,000.00
809,080.00 91,592.29 125751.25 217,343.54 16,209.37 575527.09

Total 7,109,080.00 228,592.29 265,001.25 493,593.54 16,209.37 6,599,277.09

Explanation:
1. Land/ is one asset which need not be depreciated because it has unlimited life. as it does not require any adjustments i didnt enter the details in the calculation.
2. Next is Building.
The Depreciation is calculated by dividing the cost of the asset by no. of useful lives. As the both building were purchased before 2020 the depreciation is calculated for full year.
3. Equipment:
Similarly except 2015 Loader, Flat Bed Trailer and Ford F150 all the other equipment were purchased before 2020 so depreciation is calculated for full year.
The Depreciation is calculated by dividing the cost of the asset by no. of useful lives.
2015 Loader was purchased on August 2020 so the depreciation is calculated for 5 months. (i.e)depreciation = (cost of the asset/no. of useful lives )*5 /12.
Flat bed trailer Was purchased on 1st December 2020 so the depreciation is calculated for 1month . (i.e)depreciation = (cost of the asset/no. of useful lives )*1 /12.
4. Next Ford F150,
As it is purchased on the last date of the year no depreciation is calculated for this asset.’
The cost of Ford F150 is calculated by adding the fair market value of Toro Lawn Mover + $6000 paid by the company.
Cost of Ford F150 = $18,000+$6000 = $24,000
5. Sale of Toro Lawn Mover:
Toro Lawn Mover is exchanged on the last day of the year after calculating the depreciation for the year. So, full years depreciation is posted.
Adjustment to the Account = Cost of Toro Lawn Mower – Accumulated Depreciation
                       $16,209.37 = $59,850 - $43,640.63
So, the NBV of Toro Lawn Mower is 0.
The Profit on exchange of Toro Lawn Mower = 18,000 – 16,209.37 = $1790.63 will be carried forward to Profit and loss account as profit on sale of asset.
6. Others:
Accumulated Depreciation to 12/31/20 = Accumulated Depreciation to 12/31/19 + Depreciation expense.
              NBV is nothing but Net Book Value = Cost - Accumulated Depreciation to 12/31/20
 Purchase
Date Description COST
6/15/2020 20,000 shares of Hub Cap Company 212,000.00
 Date Useful
Item Developed Cost Life
Trademark 1/1/2020 253,500 10 Yrs
Patent 1/1/2020 70,000 3 yrs

323,500
Name Title Wage

Brian Dennis President $ 250,000.00 annually

Jane Ferris Controller $ 170,000.00 annually
Lin Wang Sales $ 150,000.00 annually
Hannah Carter Sales $ 150,000.00 annually
Jessica Lampman Supervisor $ 130,000.00 annually
Larry Jones Supervisor $ 130,000.00 annually
Amy Fanshawe-Grad Accountant $ 80,000.00 annually
Max Vance Labourer $ 43.00 hourly
John Demilo Labourer $ 43.00 hourly
Kevin St Clair Labourer $ 43.00 hourly
Allison Brubaker Labourer $ 43.00 hourly
Project #1 - Downtown Hotel & Shopping Centre
Contract Price $ 20,000,000

Costs incurred in 2020 $ 4,121,880

Estimated total costs to complete $ 14,721,000 includes costs incurred in 2020

Other project information

Progress Billings:
31-May 1,150,000
31-Aug 1,350,000
30-Nov 1,500,000
Collections
1-Jul 1,150,000
9-Sep 1,340,000

0
 Selling
Units Sold Price Cost
206 X205 30 HP Machine 31,625.00 6,514,750.00 13,500.00 2,781,000.00
86 G350 60 HP Machine 47,900.00 4,119,400.00 35,900.00 3,087,400.00
30 L500 100HP Machine 103,000.00 3,090,000.00 98,600.00 2,958,000.00
13,724,150.00 8,826,400.00