Answer key for competency practice when all data are multiplied to 120%

UNADJUSTED ADJUSTMENTS ADJUSTED

Debit Credit Debit Credit DEBIT
Petty cash 72,000.00 72,000.00
Cash in b 1,267,200.00 78,540,000.00 13,920,000.00 65,887,200.00
Trading se 1,180,368.00 1,180,368.00
Accounts 4,342,392.00 4,342,392.00
Allowance for doubtful acc 132,432.00
Notes rec 1,560,000.00 1,560,000.00
Inventorie 3,305,880.00 3,305,880.00
Premium-containers 216,000.00 133,200.00 82,800.00
Prepaid a 768,000.00 768,000.00
Prepaid i 588,000.00 588,000.00
Prepaid re 504,000.00 504,000.00
Office su 433,200.00 433,200.00
Furniture 3,358,080.00 3,358,080.00
Accumulated depreciation-f 636,000.00
Equipment 5,124,000.00 5,124,000.00
Accumulated depreciation 813,000.00
Machinery 294,000.00 294,000.00
Accumulated depreciation-machine 72,000.00
Investmen 3,600,000.00 3,600,000.00
Accumulated Depreciation 180,000.00 270,000.00 90,000.00
Intangible 657,600.00 120,000.00 164,280.00 613,320.00
Accounts payable – trade 2,227,584.00
Estimated Premium Liability 190,800.00
Notes payable, 10% 3,960,000.00 150,000.00
Accrued expenses 202,848.00
Interest payable 936,000.00 11,250.00
Interest rate swap payable 194,400.00
Bonus payable 914,113.23
Deferred grant income 18,000,000.00 54,000,000.00
Loans payable 6,000,000.00
Bonds payable, 9% 6,000,000.00 4,800,000.00
Premium on bonds payable 33,446.40 181,920.00
Ordinary share capital 6,480,000.00
Share premium-conversion privilege 118,080.00
Retained earnings 2,694,792.00
Unrealized loss-interest rate swap 194,400.00 194,400.00
Sales 15,693,600.00 10,800,000.00
Grant income 18,000,000.00
Cost of g 9,280,800.00 9,280,800.00
Depreciat 1,800,000.00 162,000.00 1,962,000.00
Research and development cost 408,000.00 408,000.00
Legal expense
Loss on patent written off 120,960.00 120,960.00
Environmental Cost 12,000,000.00 12,000,000.00
Marketin 428,400.00 428,400.00
Interest 936,000.00 1,043,250.00 33,446.40 1,945,803.60
Advertisi 750,336.00 750,336.00
Bonus expense 914,113.23 914,113.23
Loss on sale 690,000.00 690,000.00
Premium expense 324,000.00 324,000.00
Amortization 43,320.00 43,320.00
TOTAL 39,956,256.00 39,956,256.00 113,373,489.63 113,373,489.63 117,175,372.83
- - -
ADJUSTED KAYA COTTO INCORPORATED
CREDIT STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 2017

CURRENT ASSET
Cash and cash equivalents
132,432.00 Financial asset at fair value
Trade and other receivable
Inventories
Prepaid Expense
TOTAL CURRENT ASSET

NONCURRENT ASSET
Property, plant, and equipment
Intangible Asset
636,000.00 TOTAL NONCURRENT ASSET

813,000.00 TOTAL ASSET

72,000.00
CURRENT LIABILITIES
Trade and other payable
Note payable-short term
2,227,584.00 Current portion of notes payable
190,800.00 Estimated premium liability
4,110,000.00 TOTAL CURRENT LIABILITIES
202,848.00
947,250.00 NONCURRENT LIABILITIES
194,400.00 Bonds payable
914,113.23 Noncurrent portion of notes payable
36,000,000.00 Loans payable
6,000,000.00 Deferred grant income
10,800,000.00 TOTAL NONCURRENT LIABILITIES
148,473.60
6,480,000.00 SHAREHOLDERS' EQUITY
118,080.00 Ordinary share capital
2,694,792.00 Reserves
Retained earnings
26,493,600.00 26,493,600.00 TOTAL SHAREHOLDERS' EQUITY
18,000,000.00 18,000,000.00
(9,280,800.00) TOTAL LIABILTIES AND SHAREHOLDERS' EQUITY
(1,962,000.00)
(408,000.00)
-
 (120,960.00) KAYA COTTO INCORPORATED
(12,000,000.00) INCOME STATEMENT
(428,400.00) FOR THE YEAR ENDED DECEMBER 31, 2017
(1,945,803.60)
(750,336.00) Net Sales
Cost of Goods Sold
(690,000.00) Gross Income
(324,000.00) Other Income
(43,320.00) Total Income
117,175,372.83 16,539,980.40
NET INCOME
BEFORE BONUS Total Expenses
AND TAX Operating Expense 4,422,169.23
BONUS 914,113.23 Other Charges 13,218,960.00
Finance cost 1,945,803.60
NET INCOME
AFTER BONUS 15,625,867.17 Net income
INCORPORATED
INANCIAL POSITION
MBER 31, 2017

65,959,200.00
1,180,368.00
5,769,960.00
3,305,880.00
2,376,000.00
78,591,408.00

7,255,080.00
613,320.00
7,868,400.00

86,459,808.00

4,486,195.23
3,960,000.00
25,000.00
190,800.00
8,661,995.23

10,948,473.60
125,000.00
6,000,000.00
36,000,000.00
53,073,473.60

6,480,000.00
(76,320.00)
18,320,659.17
24,724,339.17

86,459,808.00
 INCORPORATED
STATEMENT
ED DECEMBER 31, 2017

26,493,600.00
(9,280,800.00)
17,212,800.00
18,000,000.00
35,212,800.00

(19,586,932.83)

15,625,867.17
1 DEPRECIATION EXPENSE 90,000.00
ACCU. DEPRECIATION- INV PROPERTY 90,000.00

CASH 2,640,000.00
ACCU. DEPRECIATION- INV PROPERTY 270,000.00
LOSS ON SALE 690,000.00
GAIN ON SALE 3,600,000.00

2 CASH 6,000,000.00
LOANS PAYABLE 6,000,000.00

INTEREST EXP. 600,000.00

CASH 600,000.00

UNREALIZED LOSS-INTEREST RATE SWAP 194,400.00

INTEREST RATE SWAP PAYABLE 194,400.00

3 CASH 54,000,000.00
DEFERRED GRANT INCOME 54,000,000.00

ENVIRONMENTAL COST 12,000,000.00

CASH 12,000,000.00

DEFERRED GRANT INCOME 18,000,000.00

GRANT INCOME 18,000,000.00

4 MACHINE 294,000.00
CASH 144,000.00
NOTES PAYABLE 150,000.00

DEPRECIATION EXPENSE 72,000.00

ACCUMULATED DEPRECIATION 72,000.00

INTEREST EXPENSE 11,250.00

INTEREST PAYABLE 11,250.00

5 RESEARCH AND DEVELOPMENT 408,000.00

CASH 408,000.00

INTANGIBLE ASSET 120,000.00

CASH 120,000.00

AMORTIZATION 3,000.00
INTANGIBLE ASSET 3,000.00
6 AMORTIZATION 40,320.00
INTANGIBLE ASSET 40,320.00

LOSS ON PATENT WRITTEN OFF 120,960.00

INTANGIBLE ASSET 120,960.00

7 PREMIUM-CONTAINERS 216,000.00
CASH 216,000.00

CASH 10,800,000.00
SALES 10,800,000.00

PREMIUM EXPENSE 133,200.00

PREMIUM-CONTAINERS 133,200.00

PREMIUM EXPENSE 190,800.00

ESTIMATED PREMIUM LIABILTIY 190,800.00

8 CASH 5,100,000.00
BONDS PAYABLE 4,800,000.00
PREMIUM ON BONDS PAYABLE 181,920.00
SHARE PREMIUM-CONVERSION PRIVILEGE 118,080.00

INTEREST EXPENSE 432,000.00

CASH 432,000.00

PREMIUM ON BONDS PAYABLE 33,446.40

INTEREST EXPENSE 33,446.40

9 BONUS EXPENSE 914,113.22

BONUS PAYABLE 914,113.22