Question

Wascana Ltd. is a small wholesaler of restaurant supplies. The company’s post-closing trial balance at December 31, 2017, the end of its fiscal year, is presented below:

The company had the following transactions during January 2018. When recording these transactions, use the item number listed in lieu of the date and also use that same item number if recording a subsequent adjustment pertaining to that item.

Prepare T accounts and enter the December 31 balances.

Question 3 Wascana Ltd. is a small wholesaler of restaurant supplies. The company's post-closing trial balance at December 31, 2017, the end of its fiscal year, is presented below: Credit 23,200 WASCANA LTD. Post-Closing Trial Balance December 31, 2017 Debit Cash $83,000 Accounts receivable 464,000 Allowance for doubtful accounts Inventory 320,000 Equipment 1,800,000 Accumulated depreciation-equipment Accounts payable Interest payable Employee income tax payable CPP payable El payable Provisions Unearned revenue Bank loan payable Common shares Retained earnings $2,667,000 480,000 342,000 4,000 54,000 29,000 12,000 32,000 13,000 1,200,000 63,000 414,800 $2,667,000

Answer 1

Please find the attached T-Accounts.

Thanks

Cash Account Receivable Particluars Particulars $ $ $ Particulars Particluars Beginning Beginning 83,000 Bank Loan Payable $ 464,000 Cash $ $ $ Allowance for doubtful $ 8,000 837,000 Account Receivable 837,000 Interest Payable Prepaid Insurance Employee Income Tax Profit & Loss 703,000 accounts $ 4,000 15,000 Unearned Revenue $ 24,000 8,000 54,000 CPP Payable El Payable Profit & Loss (Salary) Advance Income Tax Accounts Payable Retained Earning 29,000 $ 12,000 157.176 10,000 $ 349,000 4.000 Ending Ending $ 323,000 268,824 Interest Payable Bank Loan Payable Particulars Particluars Particulars $ $ $ $ Particluars 4,000 Beginning Profit & Loss 8,000 Beginning Cash $12,000,000 4,000 Cash 3,973 Ending Ending $ $11,992,000 3,973 1,200,000 8000 1,192,000*4% = 47,680 * (1month/12month) = 3,973 Retained Earning Prepaid Insurance Particluars Particulars Particulars $ $ Particluars $ $ 4,000 Beginning 24,000 Profit & Loss Cash (Dividend) Profit & Loss $ $ Cash 414,800 2,000 476,527 Ending $ Ending $ 65,727 22,000

Accumulated Depreciation on Equipment Particulars Beginning Profit & Loss Particluars Interest Payable Particulars Particluars $ $ $ $ 703,000 3,973 Account Receivable $ $ 480,000 Accumulated Depreciation 528,000 Reained Earning Profit & Loss on Equipment $ $ 476,527 $ 528,000 Cash (Salary Paid) 157,176 Employee Income Tax CPP Payable El Payable CPP Payable El Payable Inventory Allowance for doubtful 54,000 14,500 $ 4,324 14,500 6,054 $ 296,000 $ accounts 33,000 Accounts Payable Provisions 47,000 $ 19,000 Prepaid Insurance 2,000 Ending $ 1,008,000 Cost A А 1,800,000 Less:Accumulated Depreciation Carrying Value Life % of Depreciation [(1/5 years)*2] Depreciation В $ 480,000 C A-B $ 1,320,000 5 Years 40% Е E F-C*E $ 528,000

CPP Payable Employee Income Tax Payable Particulars 54,000 beginning Profit & Loss a/c Particluars $ $ $ $ Particluars Particulars 29,000 beginning Profit & Loss a/c Profit & Loss a/c $ $ Cash $ $ Cash 29,000 54,000 $ $ 54,000 14,500 14,500 Ending Ending $ 54,000 29,000 El Payable Particulars Provisions Particluars Particluars Particulars $ 12,000 beginning Profit & Loss a/c Profit & Loss a/c beginning Profit & Loss $ $ $ Cash 12,000 32,000 $ 4,324 19,000 $ 6,054 Ending $ Ending 10,378 51,000 Advance Income Tax Inventory Particulars $ Particluars Particluars Particulars $ 320,000 Profit & Loss $ Beginning Accounts Payable $ Cash 10,000 296,000 268,000 Ending Ending $ $ 10,000 292,000 Allowance for doubtful accounts Accounts Payable Particulars Particulars 15,000 Beginning $ $ $ $ Particluars Particluars 349,000 beginning Inventory Account Receivable $ $ 23,200 Cash 342,000 Profit & Loss 33,000 268,000 $ Profit & Loss 47,000 Ending $ Ending $ 308,000 41,200

Unearned Revenue Common Stock Particulars Particulars Particluars $ $ Particluars beginning Account Receivable beginning $ $ 13,000 63,000 8,000 Ending Ending $ 21,000 63,000