Question 2The accountant for Wilfred Trading Company prepared the following Adjusted Trial Balance at31 December 2019.Wilfred Trading CompanyAdjusted Trial Balance31 December 2019$14,910$7,000$500CashAccounts ReceivableSuppliesInventoryPrepaid InsuranceEquipmentAccumulated Depreciation-EquipmentNotes PayableAccounts PayableInterest PayableIncome Tax PayableSalaries PayableDividend PayableShare Capital OrdinaryRetained Earnings$3,500.$2,200$15,000$1,625$100$1,220009$$14,000$5,500DividendsSales$19,780000000$Sales Returns and AllowancesCost of goods soldSalaries ExpenseTravel ExpenseRent ExpenseMiscellaneous ExpenseSupplies ExpenseDepreciation ExpenseInterest ExpenseIncome Tax ExpenseInsurance Expense$3,460$1,300$1,200$230$750$1,500$1,200$2,000$200$64,075Totals$64,075Requireda) Prepare the income statement and statement of retained earnings for the year ended 31December 2019. (Missing figures (?) above should be found and included in the statements.)b) Prepare the statement of financial position as at 31 December 2019. c) Suppose Wilfred Trading Company only started operation on 1 December 2018, computethe followings according to the adjusted trial balance:i) Years of useful life for Equipment all purchased on the first day of business, withstraight-line depreciation and residual value of $3,000, with partial year depreciationrounded to the nearest full month;ii) The depreciation expense for the year ended 2019 if double declining balance is used,with residual value of $3,000 and partial year depreciation rounded to the nearest fullmonth;iii) Why may Wilfred Trading Company choose the double declining balance method?Name one more depreciation method and explain the difference between this and theother methods.d) Compute Cash flow from financing activities for the year ended 31 December 2019assuming the following balance at 31 December 2018:$10,000$12,000Notes PayableShare CapitalDividend Payable .Interest Payable$100..... ....(For the purpose of part (ii), payments of interest and dividend are treated as financingactivities.)The 6-year $10,000 notes payable was issued on 1 December 2018, with interest payableannually on December 1. Prepare all journal entries that should be prepared in relation tothe notes payable and interests in 2019. Show the date of each journal entry.

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Asked Dec 19, 2019
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Answer Question 2

Question 2
The accountant for Wilfred Trading Company prepared the following Adjusted Trial Balance at
31 December 2019.
Wilfred Trading Company
Adjusted Trial Balance
31 December 2019
$14,910
$7,000
$500
Cash
Accounts Receivable
Supplies
Inventory
Prepaid Insurance
Equipment
Accumulated Depreciation-Equipment
Notes Payable
Accounts Payable
Interest Payable
Income Tax Payable
Salaries Payable
Dividend Payable
Share Capital Ordinary
Retained Earnings
$3,500.
$2,200
$15,000
$1,625
$100
$1,220
009$
$14,000
$5,500
Dividends
Sales
$19,780
000
000$
Sales Returns and Allowances
Cost of goods sold
Salaries Expense
Travel Expense
Rent Expense
Miscellaneous Expense
Supplies Expense
Depreciation Expense
Interest Expense
Income Tax Expense
Insurance Expense
$3,460
$1,300
$1,200
$230
$750
$1,500
$1,200
$2,000
$200
$64,075
Totals
$64,075
Required
a) Prepare the income statement and statement of retained earnings for the year ended 31
December 2019. (Missing figures (?) above should be found and included in the statements.)
b) Prepare the statement of financial position as at 31 December 2019.
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Question 2 The accountant for Wilfred Trading Company prepared the following Adjusted Trial Balance at 31 December 2019. Wilfred Trading Company Adjusted Trial Balance 31 December 2019 $14,910 $7,000 $500 Cash Accounts Receivable Supplies Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Income Tax Payable Salaries Payable Dividend Payable Share Capital Ordinary Retained Earnings $3,500. $2,200 $15,000 $1,625 $100 $1,220 009$ $14,000 $5,500 Dividends Sales $19,780 000 000$ Sales Returns and Allowances Cost of goods sold Salaries Expense Travel Expense Rent Expense Miscellaneous Expense Supplies Expense Depreciation Expense Interest Expense Income Tax Expense Insurance Expense $3,460 $1,300 $1,200 $230 $750 $1,500 $1,200 $2,000 $200 $64,075 Totals $64,075 Required a) Prepare the income statement and statement of retained earnings for the year ended 31 December 2019. (Missing figures (?) above should be found and included in the statements.) b) Prepare the statement of financial position as at 31 December 2019.

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c) Suppose Wilfred Trading Company only started operation on 1 December 2018, compute
the followings according to the adjusted trial balance:
i) Years of useful life for Equipment all purchased on the first day of business, with
straight-line depreciation and residual value of $3,000, with partial year depreciation
rounded to the nearest full month;
ii) The depreciation expense for the year ended 2019 if double declining balance is used,
with residual value of $3,000 and partial year depreciation rounded to the nearest full
month;
iii) Why may Wilfred Trading Company choose the double declining balance method?
Name one more depreciation method and explain the difference between this and the
other methods.
d) Compute Cash flow from financing activities for the year ended 31 December 2019
assuming the following balance at 31 December 2018:
$10,000
$12,000
Notes Payable
Share Capital
Dividend Payable .
Interest Payable
$100
..... ....
(For the purpose of part (ii), payments of interest and dividend are treated as financing
activities.)
The 6-year $10,000 notes payable was issued on 1 December 2018, with interest payable
annually on December 1. Prepare all journal entries that should be prepared in relation to
the notes payable and interests in 2019. Show the date of each journal entry.
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c) Suppose Wilfred Trading Company only started operation on 1 December 2018, compute the followings according to the adjusted trial balance: i) Years of useful life for Equipment all purchased on the first day of business, with straight-line depreciation and residual value of $3,000, with partial year depreciation rounded to the nearest full month; ii) The depreciation expense for the year ended 2019 if double declining balance is used, with residual value of $3,000 and partial year depreciation rounded to the nearest full month; iii) Why may Wilfred Trading Company choose the double declining balance method? Name one more depreciation method and explain the difference between this and the other methods. d) Compute Cash flow from financing activities for the year ended 31 December 2019 assuming the following balance at 31 December 2018: $10,000 $12,000 Notes Payable Share Capital Dividend Payable . Interest Payable $100 ..... .... (For the purpose of part (ii), payments of interest and dividend are treated as financing activities.) The 6-year $10,000 notes payable was issued on 1 December 2018, with interest payable annually on December 1. Prepare all journal entries that should be prepared in relation to the notes payable and interests in 2019. Show the date of each journal entry.

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Expert Answer

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Hey, since there are multiple questions posted, we will answer first question. If you want any specific question to be answered then please submit that question only or specify the question number in your message.

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Income statement:

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Wilfired Trading Company Income statement For the Year ended December 31, 2019 Amount ($) $19,780 $2,000 Sales Less: Sales returns and Allowances Net Sales $17,780 Less: Expenses Cost of goods sold Salaries expense Travel expense Rent expense Miscellaneous Expense Supplies expense Depreciation expense $6,000 $3,460 $1,300 $1,200 $230 S750 $1,500 $1,200 Interest expense Income tax expense $2,000 Insurance expense S200 $17,840 Net Income / (Loss) ($60)

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