iii. Karie Auto Supplies is a soletrader enterprise which did not maintain full double entry records. The owner asked you an accounts clerk to find some missing figures for him. He provides the following balances: Jan 1, 2020 Dec 31, 2020 Building Fixtures and fittings 1,000,000 1,0000,00 250,000 250,000 Loan 800,000 800,000 Stock 120,000 155,000 Bank 200,000 535,000 Receivables 85,000 100,000 Payables 56,000 75,000 Goods taken for personal use amounted to $5,0000. Required : a. Calculate the capital as at January 1, 2020 and December 31, 2020. b. Ascertain the amount for net profit for the year via the balance sheet.
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- F Polk, after being in the Bakery business for some years without keeping proper records, now decide to keep a double-entry set of books. On 1 September 2021 he estabilishes that his assets and liabilities are as follows: Assets: Van £5700 , Fixtures £2800 , Stock £5200, Debtors: - P Mullen £105 , M Abel £311 Bank £1060, Cash £85 Liabilities: Creditors - Syme Ltds £229, A. Hill £80 He is not sure about Journal entries for the following transactions in September 2021 as follows: 1 September: A debt of £105 owing from P Mullen was written off as a bad debt. 5 September: Office Fixtures originally bought by credit for £150 was returned to the supplier Syme Ltd, as it was unsiuitable. Full allowance will be given for this. 10 September: The business is owed £311 by M.Abel. He is declared bankrupt and we only received £180 cash in full settlement of the debt. 18 September: Bought a Machinery from Brown Ltd. to use in the company. The total purchasing value of the machine is £1800. The…Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company’s accounting clerk prepared the following unadjusted trial balance:Pitman CompanyUNADJUSTED TRIAL BALANCEOctober 31, 2019ACCOUNT TITLE DEBIT CREDIT1Cash7,710.002Accounts Receivable37,935.003Prepaid Insurance7,070.004Supplies2,125.005Land108,400.006Building145,300.007Accumulated Depreciation-Building85,610.008Equipment134,800.009Accumulated Depreciation-Equipment96,100.0010Accounts Payable12,625.0011Unearned Rent6,340.0012Jan Pitman, Capital219,690.0013Jan Pitman, Drawing15,120.0014Fees Earned323,700.0015Salaries and Wages Expense196,770.0016Utilities Expense42,265.0017Advertising Expense23,135.0018Repairs Expense17,195.0019Miscellaneous Expense6,240.0020Totals744,065.00744,065.00The data needed to determine year-end adjustments are as follows:a. Unexpired insurance at October 31, $6,105.b. Supplies on hand at October 31, $485.c.…On 1 August 2021, the owners of the ABC Enterprise, Maurice & brothers, decided that they will boldly go and keep their records on a double entry system. Their assets and liabilities at that date were. Their assets and liabilities at that date were: office fixtures £1200, a van £32,000 and£36,800 in the bank account. They have no liabilities at the 1st of August 2021Their transactions during August 2021 were as follows:2021August2 Maurice & brothers received a loan of £12,400 from Santander Bank and they deposited in their bank account. 3 The amount of £2800 was transferred from bank Account to Cash in hand account.4 Bought a second-hand Van paying by cheque £6,200 5 Bought office fixtures £3400 from Sharp Office Ltd. They paid £1000 by issuing a cheque and rest of the fixtures value would remain as credit. 8 Bought a new van on credit from Toyota Co. £8,700 15 Bought office fixtures paying by cash £110 19 Paid Toyota Co. a cheque for whole amount of debt25 Paid £430 of the…
- Barney Technologies - As the new accountant for Barney Technologies, you notice that their some information has not been included in their account balances. Answer the following questions based on the information below. Barney Technologies Balance Sheet as at 30 June 2021 Cash 18,000 Accounts payable 4,500 Office supplies 1,500 Merchandise inventory 12,000 Accounts receivable 3,000 Bank loan 27,000 Property and equipment 75,000 Owners equity 78,000 The following information has not been incorporated to the accounts of Barney at the end of the period. 1. On the 30 June, Barney withdrew $1,000 from the business. 2. Depreciation for the year of $7,500 has not been included. 3. Although the invoice has not arrived, utilities expense for the last month is expected to be $300. The Total Liabilities is?Horace Culpepper, CA, was retained by Pulsar Cable to prepare financial statements for April 2020. Horace accumulated all the ledger balances per Pulsar’s records and found the following. Analyze errors and prepare correcting entries and trial balance. Pulsar Cable Trial Balance April 30, 2020 Debit Credit Cash £ 4,100 Accounts Receivable 3,200 Supplies 800 Equipment 10,800 Accumulated Depreciation—Equip. £ 1,350 Accounts Payable 2,100 Salaries and Wages Payable 700 Unearned Service Revenue 890 Share Capital—Ordinary 10,100 Retained Earnings 2,800 Service Revenue 5,650 Salaries and Wages Expense 3,300 Advertising Expense 600 Miscellaneous Expense 290 Depreciation Expense 500 £23,590 £23,590 Horace Culpepper found the following errors. 1. Cash received from a customer on account was recorded as £950 instead of £590. 2. A payment of £75 for advertising expense was entered as a debit to Miscellaneous Expense £75 and a credit to Cash £75. 3. The first salary payment this month was…T. Cook Enterprises purchased goods from a supplier on credit for $2,000 on December 31, 2020. No journal entry was recorded for this transaction. As a result of this error, what is the effect on the company’s financial statements for the year ended December 31, 2020? Liabilities are understated; assets are understated. Assets are overstated; liabilities are overstated. Assets are understated; expenses are understated. Liabilities are understated; expenses are understated. None of the answers are correct. I believe it is the bolded option, as we now have credit we owe, as well as an asset. Leading to both being understated
- Although Deborah Adefowope has run a small business for many years, she has never kept adequate accounting records. However, a need to obtain a bank loan for the expansion of the business has necessitated the preparation of ‘final’ accounts for the year ended 31 August 2009. As a result, the following information has been obtained after much careful research:1. Deborah Adefowope’s business assets and liabilities are as follows:As at 1/09/08 31/08/08Stock in trade GHS8,600 G 800Debtors for sales 3,900 4,300Creditors for purchases 7,400 8,900Rent prepaid 300 420Electricity accrued due 210 160Balance at bank 2,300 1,650Cash in hand 360 330 2. All takings have been banked after deducting the following payments:Cash drawings – Deborah Adefowope has not kept a record of cash drawings, but suggests these will be in the region of GHS8,000Casual labour 1,200Purchase of goods for resale 1,800 Note: takings have been the source of all amounts…F Polk, after being in Bakery business for some years without keeping proper records, now decidesto keep a double entry set of books. On 1 September 2021 he establishes that his assets andliabilities are as follows: Assets: Van £5,700, Fixtures £2,800, Stock £5,200, Debtors – P Mullen£105, M Abel £311, Bank £1060, Cash £85. Liabilities: Creditors – Syme Ltd £229, A Hill £80.You work as a freelance accounting professional and have beenrecently engaged by the auditors of Life-Positive Inc. for anassignment. In examining the company’s records, you have extractedthe following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) accounts payable 24,600.00 21,250.00Accounts receivable 15,700.00 12,340.00Cash 23,450.00 28,600.00Cost of goods sold 19,700.00 23,000.00Depreciation 3,090.00 4,590.00Dividends 5,800.00 10,800.00Interest 2,340.00 2,890.00Inventory 7,050.00 8,640.00Long-term debt 28,000.00 30,000.00Net fixed assets 41,500.00 48,000.00Other expenses 2,400.00 2,800.00Sales 58,000.00…
- You work as a freelance accounting professional and have beenrecently engaged by the auditors of Life-Positive Inc. for anassignment. In examining the company’s records, you have extractedthe following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) accounts payable 24,600.00 21,250.00Accounts receivable 15,700.00 12,340.00Cash 23,450.00 28,600.00Cost of goods sold 19,700.00 23,000.00Depreciation 3,090.00 4,590.00Dividends 5,800.00 10,800.00Interest 2,340.00 2,890.00Inventory 7,050.00 8,640.00Long-term debt 28,000.00 30,000.00Net fixed assets 41,500.00 48,000.00Other expenses 2,400.00 2,800.00Sales 58,000.00…BDA Co. is unclear about Journal entries. Required: You are required to show the Journal entries (only) (with narrative) necessary to record the following items which occur in June 2020: June 1: Bought a Car on credit from Pressed Garages for £8,500. June 3: A debt of £100 owing from B.Ford was written off as a bad debt June 8: Office Fixtures originally bought for £500 was returned to the supplier Kalleh Ltd, as it was unsuitable. Full allowance will be given for this. June 12: We are owed £160 by Q Hanson. She is declared bankrupt and we received £100 in full settlement of the debt. June 14: The owner takes goods costing £180 out of the business inventory without paying for them. June 28: Some time ago, the owner paid an insurance bill thinking that it was in respect of the business. We now discover that £80 of the amount paid was in fact insurance of our private house. June 28: Bought machinery for £1250 on credit from Electronics R Us. Part 3 J.Moon has the following transactions…You work as a freelance accounting professional and have been recently engaged by the auditors of Life-Positive Inc. for an assignment. In examining the company’s records, you have extracted the following information: Life-Positive’s AccountBalances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00Accounts receivable 15,700.00 12,340.00Cash 23,450.00 28,600.00Cost of goods sold 19,700.00 23,000.00Depreciation 3,090.00 4,590.00Dividends 5,800.00 10,800.00Interest 2,340.00 2,890.00Inventory 7,050.00 8,640.00Long-term debt 28,000.00…