PROBLEM 1: Prepare and evaluate financial statements from accounts (22% Marks) A list of accounts for Geewhiz Productions Co. Ltd at November 30, 2019, is shown below, in no particular order or preference. $78,000 Dividends declared Salaries Expense Income tax payable Land $ 14,000 108,000 3,200 Accumulated amortisation 74,000 Cash in Bank 27,000 13,200 Income tax expense 8,100 6,100 Credit Sales Revenue 402,200 Employees Benefits expenses Tax deductions payable Accounts Receivable Cash Sales Revenue 18,600 Inventory on Hand 78,000 33,400 Prepaid Insurance Asset 3,200 Beginning Retained 7,500 Earnings 96,600 Dividends Payable Amortisation expense 53,000 37,200 Accounts payable 184,100 Interest Income Cost of goods sold expense 2,100 13,800 Building 346,000 Insurance expense Share Capital 300,000 Trucks and Equipment 253,400 Office Expense 5,200 46,200 Salaries payable 169,800 Mortgage Payable 9,700 Miscellaneous Expenses Interest expense Bank loan owing 37,900 20,500 Required: i. Using the list, decide which ones are income statement accounts. Estimate net income based on your answer to part 1. (3 marks) (2 marks) (2 marks) iii. Estimate ending retained earnings based on your answer to part 2. iv. Prepare the following financial statements, demonstrating that your answers to parts 2 and 3 are correct: a. Income statement for the year ended November 30, 2019. (312 marks) (2½ marks) b. Statement of retained earnings for the year ended on that date. c. Balance sheet at November 30, 2019. V. Comment briefly on what the financial statements show about the company's year 2019 and financial position at November 30, 2019. (5% marks) performance for the (4 marks)
