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need financial statement calculations for the following scenario blb enterprises is 689006

Need Financial Statement Calculations for the following scenario:

BLB Enterprises is located in France and has been in business for several years. They use IFRS to prepare their financial statements and have a calendar year accounting period (January 1 – December 31). Ending balances of the accounts at September 30, 2014 are as follows:




Accounts Payable


Accounts Receivable


Accumulated Depreciation Equipment


Advertising Expense




Common Stock


Cost of Goods Sold


Depreciation Expense






Consists of: €31,000 equipment with €1,000 salvage value and 5 year estimated life; €40,000 equipment with €7,000 salvage value and 4 year estimated life; and €28,600 equipment with €2,500 salvage value and 3 year estimated life

Gain on sale of assets


Insurance Expense


Income Tax Expense


Income Tax Payable


Income Taxes relating to third quarter that won’t be paid until future months.

Interest Expense


Interest Payable






Loss on sale of assets


Machine Rental Expense


Note Payable to Bank


Other operating expenses


Prepaid Advertising


Prepaid Insurance


Prepaid Machine Rent


Paid €12,000 in June for the months of July December

Retained Earnings


Sales Revenue




Supplies were counted at the end of September

Supplies Expense


Unearned Revenue


Wages Expense


Wages Payable


September wages won’t be paid until October

In October 2014, the company had the following transactions:
1. Made sales on account of €180,000 and cash sales of €15,000. The cost of the inventory sold was


  1. Purchased €135,500 of inventory on account.

  2. Purchased €2,500 of supplies for cash

  3. Made cash payments of €15,000 to employees for wages. This €15,000 includes the €5,000 owed

    to employees for September wages.

  4. On October 1, borrowed €50,000 from the bank. The principal of the note (the €50,000) is due in

    two years. The note has a 6% interest rate and interest is due quarterly (first payment is due

    January 1, 2015).

  5. The company declared and paid a cash dividend of €25,000

  6. The company paid €18,000 for insurance. The policy covers the company from October 1, 2014

    through March 31, 2015.

  7. The company received €10,000 from a customer in advance as a down payment. The sale will not

    take place until November.

  8. The company paid vendors €140,200 for payment of accounts payable.

  9. The company collected €175,000 from customers on account.

  10. The company sold the land they owned. They received €18,000 cash from the sale of the land.

  11. The company paid €27,550 for other operating expenses.

  12. The company issued additional common stock in exchange for €20,000

  13. The company purchased €60,000 of new equipment for cash. The estimated salvage value is

    €9,000 and the estimated life is 4 years.

  14. The company paid €5,000 for radio advertising. Half of the advertising relates to October

    advertising and half of the advertising will take place in November.

Use the information above (including beginning balance notes) to prepare adjusting journal entries. Additional information you may need:

a. €3,200 of wages for the last 3 days of October will be paid in November.
b. A physical count of supplies indicated that, at the end of October, there were €6,100 of supplies on

c. The company has €7,000 of income tax expenses relating to October which will not be paid until a

future month.

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