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WilePLUS Support Indigo Corpora t e 1.2001 INDIGO CORPORATION Balance Sheet December 31, 2021 56360 Account 104.000 During 2022. the following tractions occurred 5 12230 o r4500 1 Only Indigo 3.12040 2. On January 1 Indioshow 2.340 the w Indigo performedvice for $132.000 4. On April 1. 2002. In collected of 93.40 Indige collected 577. frostomers ano s . 1 2022 March 31.2003 for share 7 Indio od 83.720 counts payable & indigo record 164 shares of common stone Pald otherwipes of $49320 10. On December 31, 2002. Indiec i ded the common stock, wil plenary 15 11. An outre of $4420 which are in 2002 w o ce Adjustment 4 The lowance for downl o Depreciation corded on the building on l The income tax rates 30%. Prepare the income ine ad a to come before n d and m $36.000 compute the amount y by Prepare journal entries or the transactions listed above n ge many is required. select "Cry for thes e d and are automatically indeed when amount is entered. Do not indent the amounts Recorde rs in the order presented in the problem

Answer 1

Indigo Corporation Journal Enteries Trans. Particulars Debit in $ Credit in $ 1 Cash a/c Dr. 127920 To Preferred Share 124800 To Paid in Capital in excess of par-PS 3120 (Preferred shares issued) 3120 x 40 = 124800 2 54600 Cash a/c Dr. To Common Share To Paid in Capital in excess of par-CS (Preferred shares issued) 2340 x 10 = 23400 23400 31200 3 Dr. 832000 Accounts Receivable a/c To Service Revenue (Services on account) 832000 93600 Cash a/c Dr. To Unearned Revenue (Advance from client) 93600 717600 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 717600 91260 Supplies a/c Dr. To Accounts Payable (Supplies on account) 91260 Dr. 83720 Accounts Payable a/c To Cash (Creditors paid) 83720 8 29120 Treasury Shares a/c Dr. To Cash (Treasury shares purchased) 1040 x 28 29120 Dr. 489320 Operating Expense a/c To Cash (Operating Expenses paid) 489320 10 35256 Cash Dividends a/c Dr. To Dividends Payable - PS To Dividends Payable - CS (Dividends declared) 124800 x 7% = 8736 (20800 + 2340 - 1040 ) x 1.20 8736 26520 11 4420 Allowance for Doubtful accounts Dr. To Accounts Receivable (Uncollectible written off) 4420

Adjusting Enteries Trans. Particulars 1 Supplies Expense a/c Dr. To Supplies (Supplies Expensed) 11440 + 91260 - 15340 Debit in $ Credit in $ 87360 87360 2 70200 Unearned Revenue a/c Dr. To Service Revenue (Revenue earned) 93600 x 9/12 70200 3 9620 9620 Bad Debts a/c Dr. To Allowance for doubtful accounts (Bad debts estimated) 3900 - 4420 = -520 9100 + 520 = 9620 11440 Depreciation Expense a/c Dr. To Accum.Depre - Build. (To record depreciation) (369200 - 26000) / 30 11440 Dr. 91338 Income Tax Expense a/c To Income Tax Payable (Income Tax accrued) 91338

Worksheet For the period ending 31.12.2022 Particulars Cash Accounts Receivable Allowance for Doubtful accounts Supplies Land Building Accum.Depre - Buildings Accounts Payable Income Tax Payable Unearned Revenue Dividends Payable - PS Dividends Payable - CS Preferred Stock Common Stock Paid in Capital in excess of par-PS Paid in Capital in excess of par - CS Retained Earnings Treasury Shares Cash Dividends Service Revenue Operating Expense Supplies Expense Bad Debts Depreciation Expense Income Tax Expense Total Unadjusted Current Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 63960 391560 455520 118300 109980 228280 3900 4420 9620 9100 11440 91260 87360 15340 104000 104000 369200 369200 57200 11440 68640 66560 7540 74100 91338 93600 70200 23400 8736 8736 26520 26520 124800 124800 208000 23400 231400 3120 3120 31200 31200 331240 331240 29120 29120 35256 35256 832000 70200 902200 489320 489320 87360 87360 9620 9620 11440 11440 91338 666900 666900 1150916 1150916 178620 178620 1925794 1925794 902200 Statement of Income For the period ending 31.12.2022 Service Revenue Less: Operating Expense Supplies Expense Bad Debts Depreciation Expense 489320 87360 9620 11440 597740 304460 -91338 213122 Income Tax Expense @30% Net Income Statement of Retained Earnings For the period ending 31.12.2022 Beginning Balance Add:Net Income 331240 213122 544362 -35256 509106 Cash Dividends

Balance sheet As at 31.12.2022 Assets Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Assets Current Liabilities Cash 455520 Accounts Payable 74100 Accounts Receivable 228280 Income Tax Payable 91338 Allowance for Doubtful a -9100 Unearned Revenue 23400 Supplies 15340 690040 Dividends Payable - PS 8736 Dividends Payable - CS 26520 224094 Non Current Assets Land 104000 Shareholders Equity Building 369200 Preferred Stock 124800 Accum.Depre - Buildings -68640 300560 Common Stock 231400 Paid in Capital in excess of par-PS Paid in Capital in excess of par-CS 31200 Retained Earnings 509106 Treasury Shares -29120 870506 Total Assets 1094600 Total Liabilities & Equity 1094600 3120