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Iasb Framework

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Q1. COSTELLO ADVERTISING AGENCY. | Trial Balance | November 30,2011 | Account Titles | Debit | Credit | Cash | 11,000.00 | | Accounts receivable | 20,000.00 | | Office supplies | 8,600.00 | | Prepaid Rent | 1,600.00 | | Unexpired Insurance | 3,350.00 | | Equipment | 60,000.00 | | Accumulated Depreciation: Equip | | 28,000.00 | Accounts Payable | | 5,000.00 | Interest payable | | 400 | Unearned Advertising fee | | 7,200.00 | Notes Payable | | 8,000.00 | Salaries payable | | - | Capital Stock | | 30,000.00 | Retained Earnings | | 10,000.00 | Dividends | 4,000.00 | | Advertising Revenue | | 64,000.00 | Salaries Expense | 30,000.00 | | Insurance Expense | 650 | | Rent Expense | 800 | | Depreciation Expense | 5,500.00 | | Office supplies Expense | 7,000.00 | | Interest Expense | 100 | | Totals | Rs. 152,600.00 | Rs. 152,600.00 |

Other data.
1. Office supplies on hand at November 31 totals Rs. 6,000.
2. Accrued but unrecorded and uncollected Advertising revenue totals Rs. 3,000 at the end of November.
3. The equipment is being depreciated over an estimated useful life of 10years.
4. The company prepaid its six-month rent agreement on September 1, 2011.
5. Unearned advertising fee of Rs. 3,200 was earned at the end of the month.
6. Salaries of Rs. 2,000 are accrued at November 30, 2011.
7. Insurance for six-months was paid in advance on October 1, 2011.
8. On July 1, 2011 company borrowed Rs. 8000 by signing a twelve-month, 6% note payable. The entire amount plus interest is due on maturity.
a. Prepare an income statement, Statement of retained earnings and balance sheet.

Q.2. The following information has been extracted from the…...

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