ref

Sales 38,730.00 i
Gain from valuation of investment property 60.00
Gain on sale of property, plant, and equipment 250.00
Realized gain on foreign currency transactions 15.00 ii
Unrealized gain on foreign currency transactions 10.00
Cost of goods sold 23,200.00
Selling and administrative expenses 7,840.00 iii
Commission expense 210.00 b
Interest expense 370.00
Depreciation expense 940.00
Amortization expense 112.00
Unrealized holding loss on investment securities 35.00 iv
Income tax expense 2,800.00
Total expenses and losses 35,507.00
Net income 3,558.00 v

Unrealized gain on foreign currency transactions is composed of

Gain on Accounts Receivable 17.00
Gain on Cash 5.00
Loss on Accounts Payable (12.00)
Unrealized gain on foreign currency transactions 10.00

vi

vii

viii
ix

xi

xii

xiii

xiv

d
e.1

e.2

h.1

h.2

h.3

A
B

L
M

P
 Dr Cr
Accounts Receivable 38,730.00
Sales (38,730.00)

Investment Property 60.00

Gain from valuation of investment property (60.00)

Cash - investing activity (Sale of PPE) 900.00

Accumulated Depreciation 420.00
PPE (1,070.00)
Gain on sale of property, plant, and equipment (250.00)

Accounts Receivable 15.00

Realized gain on foreign currency transactions (15.00)

Accounts Receivable 17.00

Unrealized gain on foreign currency transactions (17.00)

Cash 5.00
Unrealized gain on foreign currency transactions (5.00)

Unrealized loss on foreign currency transactions 12.00

Accounts Payable (12.00)

Cost of goods sold 23,200.00

Inventory (23,200.00)

Selling and administrative expenses 7,655.00

Prepaid selling and administrative expenses (7,655.00)

Commission expense 210.00

Commission payable (210.00)

Interest expense 337.00

Interest payable (337.00)

Depreciation expense 940.00

Accumulated Depreciation (940.00)

Amortization expense 112.00

Capitalized software development costs (54.00)
Intangible assets (58.00)

Unrealized holding loss on investment securities 35.00

Investment securities (FVTPL) (35.00)

Income tax expense 2,800.00

Deferred income tax asset 26.00

Income tax expense (26.00)

Income tax expense 2,826.00

Income tax payable (2,826.00)

Income Summary 3,558.00

Retained Earnings (3,558.00)

Bad Debt Expense (selling and administrative expense) 185.00

Allowance for bad debts (185.00)

PPE 75.00
Cash - operating activity (Interest paid) (75.00)

Treasury Shares 130.00

Cash - financing activity (purchase of treasury shares) (130.00)

Cash - financing activity (reissuance of treasury shares) 90.00

Retained Earnings 40.00
Treasury Shares (130.00)

Retained Earnings 1,200.00

Common stock (no par) (1,200.00)

Capitalized software development costs 160.00

Cash - investing activity (Expenditures on capitalized software development) (160.00)

PPE (ROUA) 257.00

Long-term debt (lease liability) (257.00)

Interest Expense 33.00

Cash - operating activity (Interest Paid) (33.00)

Long-term debt (lease liability) 17.00

Cash - financing activity (payment of Lease Liability) (17.00)

Investment property 220.00

Cash - investing activity (Purchase of investment property) (220.00)

Convertible preferred stock 600.00

Common stock (no par) (600.00)

Allowance for bad Debts 167.00

Accounts Receivable (167.00)
Cash - operating activity ( Collections from customer) 38,519.00
Accounts Receivable (38,519.00)

Investment securities (FVTPL) 10.00

Cash - operating activity (Purchases of FVTPL) (10.00)

Inventory 22,653.00
Accounts Payable (22,653.00)

Accounts payable 22,795.00

Cash - operating activity (payment to suppliers) (22,795.00)

Prepaid selling and administrative expenses 7,638.00

Cash - operating activity (payment of operating expense) (7,638.00)

Investment securities (FVTOCI) 45.00

Cash - investing activity (FVTOCI) (45.00)

PPE 1,888.00
Cash - investing activity (purchase of PPE) (1,888.00)

Interest payable 372.00

Cash - operating activity (Interest paid) (372.00)

Income tax payable 2,808.00

Cash - operating activity (income tax paid) (2,808.00)

Cash - operating activity (collection from customers) 340.00

Sales revenue received in advance (340.00)

Retained Earnings 1,068.00

Dividend Payable (1,068.00)

Dividend Payable 923.00

Cash - financing activity (dividends paid) (923.00)

Long-term debt 1,382.00

Cash - financing activity (payment of long-term debt) (1,382.00)

commission payable 130.00

Cash - operating activity (commission paid) (130.00)

Cash - financing activity (issuance of common stock) 85.00

Common stock (no par) (85.00)
 2010 Dr Cr
Balance Sheet
Cash 3,130.00
Accounts receivable 728.00 i 38,730.00 A (167.00)
v 17.00 B (38,519.00)
iv 15.00
Allowance for bad debts (92.00) A 167.00 a (185.00)
Investment securities (FVTPL) 105.00 C 10.00 xii (35.00)
Inventory 2,134.00 D 22,653.00 vi (23,200.00)
Prepaid selling and administrative expenses 43.00 F 7,638.00 vii (7,655.00)
Investment securities (FVTOCI) 200.00 G 45.00
Property, plant, and equipment 8,250.00 d 75.00 iii b (1,070.00)
h.1 257.00
H 1,888.00
Accumulated depreciation (2,780.00) iii b 420.00 x (940.00)
Investment property - ii 60.00
i 220.00
Capitalized software development costs - g 160.00 xi (54.00)

Deferred income tax asset 90.00 26.00

Intangible assets 740.00 xi (58.00)

Accounts payable (490.00) E 22,795.00 v (12.00)

D (22,653.00)
Interest payable (110.00) I 372.00 ix (337.00)
Income taxes payable (36.00) J 2,808.00 xiii (2,826.00)
Sales revenue received in advance (1,480.00) K (340.00)
Dividends payable (125.00) M 923.00 (1,068.00)
Long-term debt (3,227.00) N 1,382.00 h.1 (257.00)
h.3 17.00
Commissions payable (830.00) O 130.00 viii (210.00)
Convertible preferred stock (600.00) j 600.00
Common stock (no par) (3,450.00) f (1,200.00)
j (600.00)
P (85.00)
Retained earnings (2,200.00) e.2 40.00 xiv (3,558.00)
f 1,200.00
1,068.00
Treasury shares e.1 130.00 e.2 (130.00)

Income Statement
Sales i (38,730.00)
Gain from valuation of investment property ii (60.00)
Cost of Goods Sold vi 23,200.00
Depreciation Expense x 940.00
Unrealized holding loss on investment securities xii 35.00
Bad Debt Expense (selling and administrative expense) a 185.00
Interest Expense h.2 33.00
Interest expense ix 337.00
Realized gain on foreign currency transactions iv (15.00)
Selling and administrative expenses vii 7,655.00
Gain on sale of property, plant, and equipment iii b (250.00)
Unrealized Foreign Exchange Gain on Cash v (5.00)
Unrealized Foreign Exchange Gain on AR v (17.00)
Unrealized loss on foreign currency transactions v 12.00
Amortization expense xi 112.00
Income tax Expense xiii 2,800.00
Commission Expense viii 210.00

Net Income xiv 3,558.00

Cash T Account
Operating Activities
Interest paid d (75.00)
Interest paid h.2 (33.00)
Interest paid I (372.00)
Collections from Customers B 38,519.00
Collections from Customers K 340.00
Purchases of FVTPL C (10.00)
Payment to suppliers E (22,795.00)
payment of operating expense F (7,638.00)
income tax paid J (2,808.00)
Commission paid O (130.00)

Investing Activities
Expenditures on capitalized software development g (160.00)
Purchases of FVTOCI G (45.00)
Sale of PPE iii b 900.00
Purchase of PPE H (1,888.00)
Purchase of Investing Property i (220.00)

Financing Activities
Purchase of Treasury Shares e.1 (130.00)
Reissuance of Treasury Shares e.2 90.00
Payment of Lease Liability h.3 (17.00)
Dividends paid M (923.00)
payment of long-term debt N (1,382.00)
issuance of common stock P 85.00

Effects of Changes in Foreign Currency v 5.00

182,862.00 (182,862.00)
-
2011 2011 BS Diff

3,130.00 4,443.00 (1,313.00)

804.00 804.00 -

(110.00) (110.00) -
80.00 80.00 -
1,587.00 1,587.00 -
26.00 26.00 -
245.00 245.00 -
9,400.00 9,400.00 -

(3,300.00) (3,300.00) -
280.00 280.00 -

106.00 106.00 -

116.00 116.00 -
682.00 682.00 -

(360.00) (360.00) -

(75.00) (75.00) -
(54.00) (54.00) -
(1,820.00) (1,820.00) -
(270.00) (270.00) -
(2,085.00) (2,085.00) -
 (910.00) (910.00) -
- -
(5,335.00) (5,335.00) -

(3,450.00) (3,450.00) -

- -
Supersonic Corporation
Statement of Cash Flows
For the Year Ended December 31, 2011

Operating Activities
Collections from Customers 38,859.00
Payment to suppliers (22,795.00)
payment of operating expense (7,638.00)
Commission paid (130.00)
Purchases of FVTPL (10.00)

Interest Paid (480.00)

income tax paid (2,808.00)
Cash flows from Operating activities 4,998.00

Investing Activities
Sale of PPE 900.00
Purchase of PPE (1,888.00)
Purchase of Investing Property (220.00)
Expenditures on capitalized software development (160.00)
Purchases of FVTOCI (45.00)
Cash flow used in Investing activities (1,413.00)

Financing Activities
Reissuance of Treasury Shares 90.00
issuance of common stock 85.00
payment of long-term debt (1,382.00)
Dividends paid (923.00)
Purchase of Treasury Shares (130.00)
Payment of Lease Liability (17.00)
Cash flow used in financing activities (2,277.00)
 Effects of Changes in Foreign Currency 5.00

Net change in Cash 1,313.00

Cash, 1/1/2011 3,130.00
Cash, 12/31/2011 4,443.00 TRUE

1.00