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10:01 ull LTE 4 ( Davida practice question- financia... Question I Below is the trial balance extracted from the books of Election Petition Ghana Enterprise at the end of the year 2020. DR CR GH¢ GHe Capital Revenue Purchases 195,000 445,000 255,560 86,700 Inventory at 31/12/2019 Land and Building Distribution Trucks 35,200 7,480 50,000 16,350 20,420 2,850 Deep Freezers and Bicycles 20% Long term Loan 1000 Interest on loan 150 Carriage inwards Purchases returms 100 8,520 Cash and Bank 40,600 Trade Receivables Trade Payables 36,760 65,000 Provision for doubtful debts 2,180 19,990 32,650 19,250 Vehicle running expenses Utilities Fuel Sales promotion and advertising Selling expenses 22,900 39,750 50,860 Salaries Insurance 21,410 Transportation expenses Rent income received Income from the sale of empty bags and scraps 11,950 450 390 Discounts Allowed 90 Discounts Received 120 744,340 744,340 The following information is also provided: a) Inventory in trade were valued at GH¢51,700 at the close of business on 31/12/2020 and the long-term loan was contracted on 1/07/2019. b) Kofi Tsatsu, an occupant of one of the offices of the business, has not paid his rent of GH¢150 for the last quarter of 2020. c) Included in insurance paid is GH¢1,410 which relates to the first quarter of 2021 and selling expenses yet to be paid amounted to GH¢10,050. d) All the non-current assets are depreciated at 10% using the straight-line basis. e) Provision for doubtful debt is to be maintained at 5% of outstanding debtors. Required Prepare the Income Statement for the year ending 31/12/2020 and the statement of financial position as at that date.

10:01 ull LTE 4 ( Davida practice question- financia... Question I Below is the trial balance extracted from the books of Election Petition Ghana Enterprise at the end of the year 2020. DR CR GH¢ GHe Capital Revenue Purchases 195,000 445,000 255,560 86,700 Inventory at 31/12/2019 Land and Building Distribution Trucks 35,200 7,480 50,000 16,350 20,420 2,850 Deep Freezers and Bicycles 20% Long term Loan 1000 Interest on loan 150 Carriage inwards Purchases returms 100 8,520 Cash and Bank 40,600 Trade Receivables Trade Payables 36,760 65,000 Provision for doubtful debts 2,180 19,990 32,650 19,250 Vehicle running expenses Utilities Fuel Sales promotion and advertising Selling expenses 22,900 39,750 50,860 Salaries Insurance 21,410 Transportation expenses Rent income received Income from the sale of empty bags and scraps 11,950 450 390 Discounts Allowed 90 Discounts Received 120 744,340 744,340 The following information is also provided: a) Inventory in trade were valued at GH¢51,700 at the close of business on 31/12/2020 and the long-term loan was contracted on 1/07/2019. b) Kofi Tsatsu, an occupant of one of the offices of the business, has not paid his rent of GH¢150 for the last quarter of 2020. c) Included in insurance paid is GH¢1,410 which relates to the first quarter of 2021 and selling expenses yet to be paid amounted to GH¢10,050. d) All the non-current assets are depreciated at 10% using the straight-line basis. e) Provision for doubtful debt is to be maintained at 5% of outstanding debtors. Required Prepare the Income Statement for the year ending 31/12/2020 and the statement of financial position as at that date.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 18E: Errors During the course of your examination of the financial statements of Burnett Co., a new...
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10:01 ull LTE 4 Davida practice question- financia... Question I Below is the trial balance extracted from the books of Election Petition Ghana Enterprise at the end of the year 2020. DR CR GH¢ GHe 195,000 445,000 Capital Revenue Purchases 255,560 Inventory at 31/12/2019 Land and Building 86,700 35,200 7,480 50,000 16,350 20,420 2,850 Distribution Trucks Deep Freezers and Bicycles 20% Long term Loan 1000 Interest on loan 150 Carriage inwards 100 Purchases returns 8,520 40,600 36,760 Cash and Bank Trade Receivables 65,000 2,180 Trade Payables Provision for doubtful debts Vehicle running expenses Utilities 19,990 32,650 19,250 22,900 39,750 50,860 Fuel Sales promotion and advertising Selling expenses Salaries Insurance 21,410 Transportation expenses 11,950 Rent income received 450 Income from the sale of empty bags and scraps 390 Discounts Allowed 90 Discounts Received 120 744,340 744,340 The following information is also provided: a) Inventory in trade were valued at GH¢51,700 at the close of business on 31/12/2020 and the long-term loan was contracted on 1/07/2019. b) Kofi Tsatsu, an occupant of one of the offices of the business, has not paid his rent of GH¢150 for the last quarter of 2020. c) Included in insurance paid is GH¢1,410 which relates to the first quarter of 2021 and selling expenses yet to be paid amounted to GH¢10,050. d) All the non-current assets are depreciated at 10% using the straight-line basis. e) Provision for doubtful debt is to be maintained at 5% of outstanding debtors. Required Prepare the Income Statement for the year ending 31/12/2020 and the statement of financial position as at that date.
Transcribed Image Text:10:01 ull LTE 4 Davida practice question- financia... Question I Below is the trial balance extracted from the books of Election Petition Ghana Enterprise at the end of the year 2020. DR CR GH¢ GHe 195,000 445,000 Capital Revenue Purchases 255,560 Inventory at 31/12/2019 Land and Building 86,700 35,200 7,480 50,000 16,350 20,420 2,850 Distribution Trucks Deep Freezers and Bicycles 20% Long term Loan 1000 Interest on loan 150 Carriage inwards 100 Purchases returns 8,520 40,600 36,760 Cash and Bank Trade Receivables 65,000 2,180 Trade Payables Provision for doubtful debts Vehicle running expenses Utilities 19,990 32,650 19,250 22,900 39,750 50,860 Fuel Sales promotion and advertising Selling expenses Salaries Insurance 21,410 Transportation expenses 11,950 Rent income received 450 Income from the sale of empty bags and scraps 390 Discounts Allowed 90 Discounts Received 120 744,340 744,340 The following information is also provided: a) Inventory in trade were valued at GH¢51,700 at the close of business on 31/12/2020 and the long-term loan was contracted on 1/07/2019. b) Kofi Tsatsu, an occupant of one of the offices of the business, has not paid his rent of GH¢150 for the last quarter of 2020. c) Included in insurance paid is GH¢1,410 which relates to the first quarter of 2021 and selling expenses yet to be paid amounted to GH¢10,050. d) All the non-current assets are depreciated at 10% using the straight-line basis. e) Provision for doubtful debt is to be maintained at 5% of outstanding debtors. Required Prepare the Income Statement for the year ending 31/12/2020 and the statement of financial position as at that date.
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