Question 2 in pinned below. It has 2 pictures Transcribed Image Text: Question 2 The accountant for Wilfred Trading Company prepared the following Adjusted Trial

Question 2 in pinned below. It has 2 pictures Transcribed Image Text: 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. Transcribed Image Text: 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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