Reference no: EM132647252
After a successful year at university, Brooke Sanderson was returning home for the summer to work. Brooke's summer job was to try and learn many of the responsibilities of her uncle's scissor production business, which she would one day hopefully take over. To understand the business, her family felt that the first thing she should do was construct the three fundamental financial statements. Her disorganized Uncle Robert had provided her with the list of accounts that he had compiled for the fiscal year ending March 31, 2020. However, in typical Uncle Robert form, the accounts were in no particular order. Brooke realized she would have to use the skills she learned in her Finance & Accounting course to sort through them and construct a Statement of Earnings, Statement of Changes in Equity, and a Balance Sheet. Upon a quick glance, Brooke realized that several of the accounts were missing and that some didn't seem appropriate for Sanderson's Scissors' financial statements.
Selling Expenses $233,220
Retained Earnings, at March 31, 2019 $198,900
Cost of Goods Sold Sales $12,109,500
Ending Inventory, at March 31, 2019 $49,140
General and Administrative Expenses $97,812
Common Shares, at March 31, 2019 $140,400
Snowmobiles (at ski chalet) $19,890
Accounts Payable $66,300
Accumulated Depreciation, at March 31, 2019 $46,800
Interest Expense $37,440
Cash $89,700
Salaries $1,170,000
Notes Payable $71,760
Long-Term Loan at March 31, 2019 $175,500
Current Portion of Long-Term Loan $29,250
Income Tax 22% Bank Indebtedness (Operating Line of Credit) $10,257
Rent $156,000 Goodwill $31,200
Ending Inventory, at March 31, 2020 $64,584
Maintenance and Repairs $23,985
Common Shares Issued, on January 1, 2020 $46,800
Accounts Receivable $542,880
Marker Production Machinery, Cost $234,000
Depreciation Expense $23,400
Purchases $3,861,000
Retained Earnings, at March 31, 2020 $402,987
Prepaid Expenses $21,840
Question 1: Using the above list, assemble the Income Statement, Statement of Changes in Equity and Balance Sheet for the fiscal year 2020.