Question

You are provided with the following information for Pharoah Company, effective as of its April 30, 2022, year-enc $ 846 880 620 1,250 17,200 1,040 415 Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Common stock Cost of goods sold Depreciation expense Dividends Equipment Goodwill Income tax expense Income taxes payable Insurance expense Interest expense Inventory Investment in land Land Mortgage payable (long-term) 400 2,590 1,600 190 125 210 600 980 13,645 2,500 3,300

Answer 1

PHAROHA COMPANY

Income Statement  

For the Year Ended April , 30 , 2022

Particulars	Amount $	Amount $
Sales Ravanue	5,000
Less Cost of Goods Sold	1,040
Gross Profit	3,960	3,960
Less Expenses
Saalries	750
Insurance	210
Interest Expense	600
Income Tax Expense	190
Depriciation	415
Toal Expenses	2,165	( 2,165 )
Net Income Before Dividend		1,795
Less Dividend		( 400 )
Net Income		1395

,

PHAROMA COMPANY

Retained Earning Statement  

For the Period   April , 30 , 2022

Particulars	Amount $
Retained Earning Begining Balance	1,500
Add Net Income Earned During the Period	1,395
Less Loss During the Period	0
Retained Earning Clsoing Balance	2,895

PHAROMA COMPANY

Balance Sheet  

as on April , 30, 2022

Assets	Amount $	Amount $
Non Current Assets
Land	2,500
Equipment Working Note 01	1,970
Goodwill	1,600
Investment in Stock	1,800
Investment in Land	13,645
Total Non Current Assets A	21,515	21,515
Current Assets
Account Receivable	880
Cash	1,250
Inventory	980
Prepaid Insurance	70
Total Current Assets B	3,180	3,180
Total Assets ( A + B )		24,695
Liabilities and Stakeholder's Equity
Stakeholder's Equity
Common Stock	17,200
Retained Earning ( As per Above Retained Earning Statement )	2,895
Stakeholder's Equity C	20,095	20,095
Non Current Liabilities
Morgage Payable	3,300
Non Current Liabilities D	3,300	3,300
Current Liabilities
Account Payable	846
Income Tax Payable	125
Note Payable	64
Salaries Payable	265
Current Laibilities E	1,300	1,300
Total Liabilities and Stakeholder's Fund ( C +D + E )		24,695

Working Note 01 Equipment  

Equipmet = Gross Equipment - Accumalted Depriciation on Eqipment

= 2,590 - 620

Equipment = 1,970