dim_trading_co - DIM TRADING CORPORATION1 Beginning and...

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DIM TRADING CORPORATION 1 Beginning and ending balance sheet items of Dim Trading Co. and all income statement items for the year 2004 are listed below in a mixed order. (Table 1) a) For each item, state reporting location among the sections of the basic financial statements by using the following abbreviations. CA = Balance Sheet - Current Assets FA = Balance Sheet - Fixed Assets STL = Balance Sheet - Short Term Liabilities LTL = Balance Sheet - Long Term Liabilities OE = Owner’s Equity IS = Income Statement b) For each item, state whether the related account should carry debit or credit balance. c) Prepare the financial statements and leave spaces for the missing figures. d) Considering the cash flow information for the year 2004 (Table 2) and the additional note, calculate the missing figures and complete the financial statements. Table 1: The List of The Items of The Financial Statements Location Deb/Cre 31.12.2003 31.12.2004 CASH 100 10 SALES ????? TELEPHONE EXPENSE 240 PREPAID INSURANCE 45 ????? INSURANCE EXPENSE 710 UTILITY EXPENSE 430 FIXTURES AND FURNISHINGS 2.400 2.400 CAPITAL ????? ????? BUILDINGS 3.000 3.000 ACCUMULATED DEPRECIATION 250 400 S.T. BANK LOANS 2.560 2.460 DEPRECIATION EXPENSE ????? NOTES PAYABLES 1.100 790 SALE ORDERS 200 260 TAX PAYABLES 0 125 ACCOUNTS PAYABLE 140 200 MARKETABLE SECURITIES 2.400 3.800 INTEREST EXPENSE 1.395 INVENTORY 1.000 870 RETAINED EARNINGS 1.195 ????? SALES DISCOUNTS AND ALLOWANCES 1.180 COST OF GOODS SOLD ????? Table 2: Cash Flows Collections from the Customers 13.060 Disbursements to the Suppliers 8.620 Disbursements for the Insurance 765 Dividend Payment 200 Additional Info: There is no increase in capital and no sale of any fixed asset during the period. 1 Kerem Sar ı o ğ lu ©2004 1
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SOLUTION A) REPORTING LOCATIONS AND BALANCES “D” stands for DEBIT “C” stands for CREDIT RL BAL. 31.12.2003 31.12.2004 CA D CASH 100 10 IS C SALES ????? IS
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dim_trading_co - DIM TRADING CORPORATION1 Beginning and...

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