During 2017 the following transactions occurred:1)Mars Limited purchased eight cars for their sales representatives for a total of €120,000. Thecompany also bought some additional fixtures and fittings for €36,000. Both were paid incash.2)Mars Limited purchased inventory on credit at a cost of €5.6million.3) Sales were made on credit amounting to €8 million. There was no cash sales.4)Mars Limited made payment to its creditors amounting to €5.8 million during the year.5) Payments from the customers amounting to €7.6 million was received during the year.6) Mars Limited issued and paid dividends amounting to €120,000 during the year.7) All inventories were used to generate profit. There is no inventory left at the end of accountingperiod.Required:a) Draw up the ledger (T-accounts) for Mars Limited for the year ended 31st December 2017,posting all transactions. Make sure you open and balance off all accounts correctly. Tutorial Question 1Mars limitedMars Limited's Statement of Financial Position as at 1st January 2017 is as follows:Mars Limited Statement of Financial Position as at 1st January 2017ASSETSNon-current assetsPremisesFixtures and ngsVehicleDistribution costsEmployee costsOccupancy costsTotal non-current assetsCurrent assetsInventoriesTrade receivablesCash and cash equivalentsTotal current assetsTotal assetsEQUITY AND LIABILITIESShare capitalRetained earningsTotal equityCurrent liabilitiesTrade payablesTotal current liabilitiesTotal equity and liabilitiesNBV€'000Repairs and maintenance expensesUtility expensesOther administrative expenses1,280144401,464803608201,2602,7241,2801,0442,324There are the following payments listed in the bank statement that took place during 2017:4004002,724€'0002407201689624

Accounting is defined as a process of analyzing, recording and posting the transactions of a…

During 2017 the following transactions occurred: 1) Mars Limited purchased eight cars for their sales representatives for a total of €120,000. The company also bought some additional fixtures and fittings for €36,000. Both were paid in cash. 2) Mars Limited purchased inventory on credit at a cost of €5.6million. 3) Sales were made on credit amounting to €8 million. There was no cash sales. 4) Mars Limited made payment to its creditors amounting to €5.8 million during the year. 5) Payments from the customers amounting to €7.6 million was received during the year. 6) Mars Limited issued and paid dividends amounting to €120,000 during the year. 7) All inventories were used to generate profit. There is no inventory left at the end of accounting period. Required: a) Draw up the ledger (T-accounts) for Mars Limited for the year ended 31st December 2017, posting all transactions. Make sure you open and balance off all accounts correctly.

During 2017 the following transactions occurred: 1) Mars Limited purchased eight cars for their sales representatives for a total of €120,000. The company also bought some additional fixtures and fittings for €36,000. Both were paid in cash. 2) Mars Limited purchased inventory on credit at a cost of €5.6million. 3) Sales were made on credit amounting to €8 million. There was no cash sales. 4) Mars Limited made payment to its creditors amounting to €5.8 million during the year. 5) Payments from the customers amounting to €7.6 million was received during the year. 6) Mars Limited issued and paid dividends amounting to €120,000 during the year. 7) All inventories were used to generate profit. There is no inventory left at the end of accounting period. Required: a) Draw up the ledger (T-accounts) for Mars Limited for the year ended 31st December 2017, posting all transactions. Make sure you open and balance off all accounts correctly.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 16CE: Cornerstone Exercise 1-16 Financial Statements Listed below are elements of the financial...

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