Leslie Cheung was the proprietor of Leslie Fresh Fruits Company. Following was the unadjusted trial...
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Leslie Cheung was the proprietor of Leslie Fresh Fruits Company. Following was the unadjusted trial balance as at 31 December 2019: Credit ($) Debit ($) 13,500 188,000 113,000 3,000 520,000 84,000 59,500 300,000 328,000 Accounts Cash Accounts receivable Merchandise inventory (beginning) Shop supplies Trucks Accumulated depreciation - trucks Accounts payable Long term notes payable Leslie - Capital Leslie - Withdrawals Sales revenue Sales returns and allowances Purchases Purchases discount Transportation-in expense Shop supplies expense Trucks expense Salaries expense Utilities expense 26,000 1,500,000 4,000 660,000 2,000 33,000 41,000 166,000 331,000 175,000 2,273,500 2,273,500 Additional information: (i) The ending merchandise inventory on 31 December 2019 was $99,000. Depreciation expense for the truck ($42,000) has not been accounted for. (iii) Of the $300,000 long term notes payable, $30,000 would be due for payment in next year. You are required to: (a) Prepare the income statement and the statement of changes in equity for the year 2019. [8 marks] (b) Prepare the balance sheet at 31 December 2019. [6 marks) (c) What are "trade discount" and "cash discount"? [6 marks
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