Date Description Debit Credit

Jan-20 Bad debts A/C DR 2900

To allowance for debts A/C 2200
To Accounts Receivable A/C 700

( for creating bad debts)

31-Dec Supplies expense A/C DR 1600

To Supplies A/C 1600

( for use of supplies in operation)

1-Apr Insurance Expense A/C Dr 3000

To Prepaid Insurance A/C 3000

( For recording insurance expense)

31-Dec FV-NI investment A/C DR 2500

To unrealised gain/loss A/C 2500

(for recording unrealised gain on FV-NI)

20-Mar Gain on Disposal of equipment A/C DR 100

Accumulated Depriciation A/C DR 4200
To Equipment A/C 4300

( For correcting recording sales of equipment)

31-Dec Depriciation Expense A/C DR 7200

To Accumulated Depriciation A/C 7200

( For recording depriciation Expense)

31-Oct Interest Receivable A/C DR 208

To Interest Income A/C 208

( For interest receivable on notes receivable )

31-Dec Interest Expense A/C DR 200

To Accrued Liabilities A/C 200

( For interest payable on demanded bank loan)

31-Dec Salaries and wages Expense A/C DR 790
To Salaries and wages Payable A/C 790

( Recorded due salaries and wages)

31-Dec Unearned Revenue A/C DR 3200

To Revenue A/C 3200

( Unearned revenue Due)

31-Dec Litigation Expense A/C DR 5000

To litigation Liability A/C 5000

( Provision for legal Activity )

31-Dec Income Tax Expense A/C DR 30287

To Income Tax Payable A/C 30287

( For income tax paysble is paid)

 Wexdorf Consulting Ltd.
Unadjusted Trial Balance
31-Dec-20 Adjustments
Account Debit Credit Debit
Petty Cash $ 600
Cash $ 18,500
Accounts Receivable $ 44,700
Allowance for Doubtful Accounts $ 1,800
Interest Receivable $ - $ 208
Prepaid Insurance $ 4,000
Supplies Inventory $ 2,000
FV-NI Investments $ 20,000 $ 2,500
Notes Receivable $ 25,000
Equipment $ 94,000
Accumulated Depreciation - Equipment $ 36,000 $ 4,200

Goodwill $ 22,000
Bank Loan $ 18,000
Accounts Payable $ 7,950
Salaries and Wages Payable $ -
Interest Payable $ -
Unearned Revenue $ 4,200 $ 3,200
Litigation Liability $ -
Accrued Liabilities $ -
Income Taxes Payable $ 30,000
Common Shares $ 36,000
Retained Earnings $ 59,800
Dividends $ 26,000
Service Revenue $ 242,768
Interest Income $ 1,042
Unrealized gain/loss $ -
Gain on Disposal of Equipment $ 300 $ 100
Depreciation Expense $ - $ 7,200
Office expense $ 4,100
Travel expense $ 6,700
Insurance expense $ 900 $ 3,000
Interest Expense $ 1,300 $ 200
Utilities Expense $ 750
Rent expense $ 54,000
Salaries and Wages Expense $ 49,510 $ 790
Supplies expense $ - $ 1,600
Bad Debt expense $ - $ 2,900
Telephone and Internet expense $ 3,200
Repairs and Maintenance Expense $ 600
Litigation expense $ - $ 5,000
Income tax expense $ - $ 30,287

$ 407,860 $ 407,860
Adjustments Adjusted Trial Balance
Credit Debit Credit
$ 600
$ 18,500
$ 700 $ 44,000
$ 2,200 $ 4,000
$ 208
$ 3,000 $ 1,000
$ 1,600 $ 400
$ 22,500
$ 25,000
$ 4,300 $ 89,700

$ 7,200 $ 39,000
$ 22,000
$ 18,000
$ 7,950
$ 790 $ 790

$ 1,000
$ 5,000 $ 5,000
$ 200 $ 200
$ 287
$ 36,000
$ 59,800
$ 26,000
$ 3,200 $ 245,968
$ 208 $ 1,250
$ 2,500 $ 2,500
$ 200
$ 7,200
$ 4,100
$ 6,700
$ 3,900
$ 1,500
$ 750
$ 54,000
$ 50,300
$ 1,600
$ 2,900
$ 3,200
$ 600
$ 5,000
$ 30,287

$ 421,945 $ 421,945
 Wexdorf Consulting LTD.
Consolidated Statement of Earnings
for the year ended December 31st 2020

Particulars Amount

Service Revenue

Service Revenue $ 245,968

Net Sales Revenue $ 245,968

Operating Expenses
Depriciation Expense $ 7,200
Insurance expense $ 3,900
Utilities Expense $ 750
Rent Expense $ 54,000
Salaries and wages Expenes $ 50,300
Bad Debt Expense $ 2,900
Repairs and maintenance Expense $ 600 $ 119,650

Administrative Expense
Office Expense $ 4,100
Travel Expense $ 6,700
Telephone and Internet Expense $ 3,200
Supplies Expense $ 1,600 $ 15,600 -$ 135,250

Income from operations $ 110,718

Other Revenues and Gains

Interest Revenue $ 1,250

Unrealised gain/Loss $ 2,500
Gain on disposal of equipment $ 200 $ 3,950 $ 3,950

$ 114,668

Other Expenses and Losses

Interest Expense $ 1,500

Litigation Expense $ 5,000 $ 6,500 -$ 6,500
Income before Income Tax $ 108,168

Income Tax Expense (28%) -$ 30,287

Net Income $ 77,881

 Wexdorf Consulting LTD.
Consolidated Statement of Retain Earnings
for the year ended December 31st 2020

Particulars Amount

Opening Balance $ 59,800

ADD: Net Income $ 77,881

Less: Dividend Paid -$ 26,000

Closing Balance $ 111,681

 Wexdorf Consulting LTD.
Statement of Financial Position
December 31st 2020

Particular Amount

Assets
Current Assets
Petty Cash $ 600
Cash $ 18,500
Accounts Receivable $ 44,000
Less: Allownce for Doubtful Debts -$ 4,000 $ 40,000
Interest Receivable $ 208
Prepaid Insurance $ 1,000
Notes Receivable $ 25,000
Supplies $ 400

Total Current Assets $ 85,708

Fixed Assets
FV-NI Investment $ 22,500
Equipment $ 89,700
Less: Accumulated Depreciation - Equipment $ 39,000 $ 50,700
Goodwill $ 22,000

Total Fixed Assets $ 95,200

Total Assets $ 180,908

Liabilities
Current Liabilities
Bank Loans $ 18,000
Accounts Payable $ 7,950
Salaries and Wages Payable $ 790
Unearned Revenue $ 1,000
Income Tax Payable $ 287

Total Current Liabilities $ 28,027

Long-Term Debt
Accrued Liabilities $ 200
Litigation Liability $ 5,000
$ 5,200
Total Lialibities $ 33,227

Shareholder's Equity
Common Shares $ 36,000
Retain Earnings $ 111,681

Total Liabilities & Equity $ 180,908

Level 1 Inputs: -
Level 1 inputs are quoted prices in active markets for
identical assets or liabilities that the entity can access
at the measurement date.

Level 2 Inputs: - quoted prices for similar assets or liabilities in active markets

quoted prices for identical or similar assets or liabilities in markets that are not active

inputs other than quoted prices that are observable for the asset or liability, for example
interest rates and yield curves observable at commonly quoted intervals implied volatilities
credit spreads

inputs that are derived principally from or corroborated by observable market data by
correlation or other means ('market-corroborated inputs').
Level 3 inputs

Level 3 Inputs: - Level 3 inputs inputs are unobservable inputs for the asset or liability.
bility, for example
s implied volatilities

e market data by
s').
1) Current Ratio Current Assets
Current Liabilities

85708
28027

3.06 times

2) Dividend Payout Ratio Total Dividend

Net Income

26000 *100
77881

33.38%