《 Industry comparison of Accounting 》 TASK 5 International Accounting 1. If you are a financial manager of an American subsidiary in China, you have got the trial balance of Dec 31 2013.It is below: Trial Balance of Dec 31 2013 科 目 期 初 余 额 本 年 发 生 额 Account Debit Credit YTD Debit YTD Credit cash $10,000.00 $4,000.00 $2,000.00 bank deposit $1,000,000.00 $40,000.00 $10,000.00 Trade Receivables $50,000.00 $1,838,000.00 Inventories $80,000.00 $60,000.00 Property, plant and equipment $100,000.00 depreciation $20,000.00 $10,000.00 Intangible assets $500,000.00 Trade payables--A company $500,000.00 $500,000.00 $390,000.00 --B company $10,000.00 $30,000.00 Other payables--staff Li $500,000.00 --staff Wang $10,000.00 $60,000.00 Long-term bank loans $200,000.00 Ordinary Shares $500,000.00 Retained Earnings $0.00 $2,000,000.00 Net profit for the year $10,000,000.00 $10,000,000.00 Revenues $10,000,000.00 $10,000,000.00 Cost of revenues $5,000,000.00 $5,000,000.00 Selling expenses $1,000,000.00 $1,000,000.00 Administrative Expenses $1,000,000.00 $1,000,000.00 Finance Costs $900,000.00 $900,000.00 Income Tax $100,000.00 $100,000.00 Total amount $1,740,000.00 $1,740,000.00 $30,472,000.00 $30,472,000.00 Now, please you prepare the “Balance sheet of Dec 31 2013” and “Income Statement of 2013”below: (1) Blank Balance Sheet: Balance Sheet of Dec 31 2013 ITEM AMOUNT Cash and cash equivalents Trade Receivables Other Receivables Inventories Prepayments and deposits Deferred income tax assets Other current assets TOTAL CURRENT ASSETS Property, plant and equipment Investments in subsidiaries Intangible assets TOTAL NON CURRENT Total assets LIABILITIES Trade payables Other payables Bill payable Advances from customers Salary payables Tax payables Borrowings TOTAL CURRENT LIABILITIES Long-term bank loans Deferred tax liabilities, net Total non-current liabilities Total liabilities Ordinary Shares/stock Additional paid-in capital Revenue reserves Retained Earnings TOTAL EQUITY TOTAL LIABILITIES AND (2) Blank Income statement: INCOME STATEMENT of 2013 ITEM AMOUNT Net revenues Cost of revenues Gross profit Operating expenses: Selling expenses Administrative Expenses R&D Expenses Operating Profit Other income, net Finance Costs Profit Before Tax Income Tax Net Profit for the year
