is the below correct? Requirement:-is statement correct? Statement of Profit or Loss For the period ending 30 June 2023 Account Name Revenue Other Revenue Interest Received Total Revenue Dr Cr 86,000 890 86,890 Expenses Advertising Expense 1,700 Depreciation Expense - Equipment 3,276 Phone Expense 1,228 Motor Vehicle Expense 4,590 Supplies Expense 52,104 Total Expense Profit (Loss) 62,898 23,990
Q: 1. Sold and issued 18,000 ordinary shares for cash at 90 per share to FAITH. 2. Sold and issued…
A: Treasury shares:The shares outstanding that are repurchased by an issuing company are known as…
Q: At December 31, 2023, Sandhill Corp's general ledger includes the following account balances:…
A: Intangible Assets to Include:Copyrights: $52,500Trademarks: $106,000Intangible Assets to…
Q: f Officer Ellis receives a tip from a reliable source that Jaidyn is dealing drugs out of her…
A: References: Fourth Amendment of the U.S. Constitution:…
Q: How much withholding tax on compensation will Near Eastern University. withhold on the salary of…
A: Income tax: The income tax refers to the amount that is paid by the taxpayer to the tax authority of…
Q: Garza Company had sales of $155,000, sales discounts of $2,325, and sales returns of $3,720. Garza…
A: Step 1:The net sales are computed by deducting sales discounts and sales returns from the total…
Q: Filimonov Inc. has the following information related to purchases and sales of one of its inventory…
A: Approach to solving the question: For ease of understanding, I have provided solutions in both text…
Q: Exercise 16-43 (Algo) Variable Cost Variances (LO 16-5) The records of Heritage Home Supplies show…
A: Part 2: Explanation:Step 1: Calculate the standard direct labor cost per unit of output:Standard…
Q: A company purchased $12,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping…
A: Step 1: Calculate the balance after the return Purchase$12,000Less: Purchase return 2,400Balance…
Q: am. 118.
A: The objective of the question is to prepare the operating expense budget for ABC Company for the…
Q: On September 1, 2023, Tipton Enterprises borrowed $400,000 on a mortgage to purchase land and a…
A: Calculate the balance in the Mortgage Payable account after the October 31 payment using Excel as…
Q: 2011 During 2011, its first yearof operations, Eli-Wallace Distributors reported pretax accounting…
A: Part 2: Explanation:1. Income Tax Expense on the Income Statement: - The income tax expense is…
Q: The following information is presented for Setlagole Catering, a business in providing luxury…
A: To calculate the net profit or loss made on the simultaneous liquidation of Setlagole Catering, we…
Q: A company purchased $9,700 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it…
A: Step 1:Computation of the amount due for merchandise purchase on payment date i.e. June 24:Amount…
Q: Whispering Company has a stock portfolio valued at $3,800. Its cost was $3,200. If the Fair Value…
A: Step 1:To prepare the journal entry at year-end for the given scenario, we need to adjust the value…
Q: None
A: When faced with the decision to make or buy a product, businesses must carefully evaluate the costs…
Q: None
A: Answer information:Step 1:1.Calculation of Estimated warranty liabilityEstimate warranty liability =…
Q: Widmer Company had gross wages of $309,000 during the week ended June 17. The amount of wages…
A: Step 1: Preparation of entry for payroll of the week.DateAccount Titles and…
Q: North Ltd. purchased a building in 20X5 for $1,450,000. Straight-line depreciation was used, with a…
A: The objective of the question is to calculate the depreciation expense for the year 20X8 under two…
Q: Determine the tax liability for tax year 2021 In each of the following Instances. In each case,…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: Problem 13-62 (LO 13-2) (Static) In 2023, Nital (age 40) contributes 10 percent of his $100,000…
A: Step 1: Calculate Nital's annual contributions.His contribution: 10% * $100,000 = $10,000AY…
Q: Consider the following table for an eight-year period: Year T-bill return Inflation 123L 7.41% 8.59%…
A: The answer is shown in the following table:| **a. Treasury bills** | **Inflation rate** || --- | ---…
Q: am. 115.
A: Computation of the Net Present Value of the investment in the machine Given,Cost of the machine is…
Q: Sagar
A: Part 2: Explanation:Step 1: In this step, we find the reciprocals of the proportions of service used…
Q: Account$ 51,000Accounts payable$33, 700 Land Notes payable49,000Accounts receivable 71, 2000perating…
A: To determine the amount of owner's equity, you need to calculate the total assets and total…
Q: Garden Depot is a retailer that provided the following budgeted cash flows for next year: 1st…
A: Step 1: Show formula version of the solution sheet for a better understanding of the calculations:…
Q: For each of the following independent cases, fill in the missing amounts in the table: Note:…
A: Step 1:CaseDirect Labor Spending VarianceA= Direct Labor Rate Variance(U) + Direct Labor Efficiency…
Q: Dinesh
A: For the first option, the present value of receiving $74,000 immediately is straightforwardly…
Q: None
A: Step 1:Given:Sample size, n = 8MonthUnits ProducedMixed…
Q: ! Required information [The following information applies to the questions displayed below.] Greer…
A: To calculate Greer Utsey's employee share of taxes for the third weekly payroll of the year, we need…
Q: A company must decide between scrapping or reworking units that do not pass inspection. The company…
A: Scrapping the units will generate a revenue of $37,700.Reworking the units will incur additional…
Q: Maria Am Corporation uses the weighted-average method of process costing. The Baking Department is…
A: Cost of unit transferred out= Total cost to be account for - Cost of Ending WIP…
Q: Manufacturing Decisions Whenever the units manufactured differ from the units sold, finished goods…
A: Completing the Table (Question 1)Here's the completed table with operating income under absorption…
Q: Calculate the Taxes Payable for the following scenario assuming in all cases a $200,000 investment,…
A: Taxable Payable- Income tax payable is a liability reported for financial accounting purposes. It…
Q: Exercise 2-28 (Algo) Analyzing changes in a company's equity LO P1 Compute the missing amount for…
A: The above answer can be explained as under - The Equation for equity is explained as under - Ending…
Q: Urmila
A: Computation of the amount of revenue and gross profit (loss) according to the percentage of…
Q: 1 2 Stanley Manufacturing Company, which sold 16,000 units of product at $20 per unit, collected the…
A:
Q: Knowledge Check 01 Which of the following is not a benefit of self-imposed budgets?
A: The objective of the question is to identify a disadvantage or a non-benefit of self-imposed…
Q: None
A: Number of units available for sale :Beginning balance + Units purchased during the year= 50 +…
Q: aaa Ltd acquires 100% interest in YYY Ltd. On 1 July 2022 aax Ltd sells an item of plant to YYY Ltd…
A: 3. Adjust the carrying value of the plant in aaX Ltd's accounts: Dr. Accumulated Depreciation…
Q: Exquisite Homes Company is considering the acquisition of Condominiums, Inc. early in 2020. To…
A: Accounting classifies intangible assets as those that are not observable to the naked eye, that is,…
Q: None
A: Step 1:Computation of the contribution margin per unit on units sold to outside…
Q: Ladbrecks was founded by members of the Ladbreck family in the 1880s. The first store opened under…
A: Sales Impact AssessmentThe Percentage Change in Sales, depicted in Figure 1, showcases the temporal…
Q: None
A: Step 1: Determine the actual borrowing cost Step 2: Find the average carrying amountStep 3: Find…
Q: A company preparing for a Chapter 7 liquidation has listed the following liabilities: Note payable A…
A: Step 1: Calculation of Free assets after payment of liabilities with priority.Free assets…
Q: None
A: Maximum Gain:My previous explanation contained an error. The maximum gain of $60,400 is incorrect.…
Q: Own 1,000 shares of common stock from Milkshake inc which is an S corporation and has 100,000 shares…
A: TaxThe amount of money paid by the government on the income or gains earned by a company or…
Q: PROBLEM 1 Ms. Mabunina Mae Galisfa, a famous licensed lawyer, had the following transactions, in…
A: Part 2: Explanation:Step 1: Compute Output TaxOutput tax refers to the VAT collected from customers…
Q: None
A: VIKKAGE OF SEASIDE PINESENTERPRISE FUNDReconcilliation of Operating Income toNet Cash Provided by…
Q: On the first day of the fiscal year, Shiller Company borrowed $32,000 by giving a 5-year, 11%…
A: The objective of this question is to understand how to journalize the entries for the issuance of an…
Q: None
A: An evaluation of the applicability of Section 351 of the Internal Revenue Code (IRC) is necessary in…
Step by step
Solved in 2 steps
- Adjustment for depreciation The estimated amount of depredation on equipment for the current year is $133,000. a. How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b. If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?What is the term used for the profit on a sale before any operating expenses have been deducted? a. Net Income b. Net Profit c. Gross Profit d. Gain on Sale e. All of the aboveUnusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
- For each of the following situations, indicate the effect on assets, net income, andretained earnings at December 31, 2020 and 2021 as follows:• O if the financial statement element is overstated.• U if the financial statement element is understated.• NE if there is no effect on the financial statements.Provide a brief explanation for your choice eg NI U – expenses too highNote: please present in a table form a) Depreciation expense on machinery is too high for 2020 and the 2021depreciation expense is correct. b) A 3-year rental agreement was signed on Jan. 1 2020 and recorded as aprepaid asset. No rent expense has been recognized. c) 2019 ending inventory was overstated by $10,000; 2020 inventoryunderstated by $8,000; 2021 inventory was correct.Use the trial balance, adjustments and additional information to prepare the Statement ofComprehensive Income for the year ended 28 February 2022.Liat TradersPRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022Balance sheet accounts section Debit CreditR RCapital 550 854Drawings 75 150Land and buildings 477 164Vehicles at cost 91 000Equipment at cost 67 000Accumulated depreciation on vehicles 31000Accumulated depreciation onequipment 23800Trading inventory 68 800Debtors control 45 850Provision for bad debts 1900Bank 15 560Cash float 1 250Petty cash 250Creditors control 38 860Loan: MUFG Bank (15%) 21600Nominal accounts sectionSales 498 000Cost of sales 244 000Sales returns 8 000Wages 42 500Bank charges 2 300Rent income 26000Packing materials 12 000Advertising 8 500Rates 3 000Bad debts 900Discount allowed 750Discount received 980Stationery 8 500Interest on loan 2 970Water and electricity 5 550Insurance 5 000Telephone 7 0001 192 994 1 192 994Adjustments and additional information1. A…You are presented with the following trial balance of Carl Ltd at 31 October 2018. DrCr R,000Building at costBuildings, accumulated depreciation, 1 November 2018 Plant at costPlant, accumulated depreciation, 1 November 2018 Land at costBank balanceRevenuePurchasesDiscounts receivedReturns inwardsWagesEnergy expensesTrade PayablesTrade ReceivablesInventory at 1 November 2018Allowance for debtors at 1 November 2018 Administrative expensesDirector's remunerationAccumulated profit at 1 November 201810% DebentureDividend paidR1 Ordinary sharesShare premium accountR,000 74060 220110 23550 1,8001,1059035 180 105250 3201601080 70306503,28080 3,280130 50Additional information as at 31 October 2019.a. Closing inventory has been counted and is valued at R75,000b. An invoice of R15 000 for energy expenses for October 2019 has not been received.c. The allowance for debtors is to be increased to 5% of trade receivable.d. Buildings are depreciated at 5% per annum on their original cost, allocated 30%…
- Listed below are nine technical accounting terms used in this chapter:Unrecorded revenue Adjusting entries Accrued expensesBook value Matching principle Accumulated depreciationUnearned revenue Materiality Prepaid expensesEach of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not cor-rectly describe any of the terms. a. The net amount at which an asset is carried in the accounting records as distinguished from itsmarket value. b. An accounting concept that may justify departure from other accounting principles for pur-poses of convenience and economy. c. The offsetting of revenue with expenses incurred in generating that revenue.d. Revenue earned during the current accounting period but not yet recorded or billed, whichrequires an adjusting entry at the end of the period.e. Entries made at the end of the period to achieve the goals of accrual accounting…For each of the following situations, indicate the effect on assets, net income, and retained earnings at December 31, 2020 and 2021 as follows: • O if the financial statement element is overstated. • U if the financial statement element is understated. • NE if there is no effect on the financial statements. Provide a brief explanation for your choice eg NI U – expenses too high Note: please present in a table form a) Depreciation expense on machinery is too high for 2020 and the 2021 depreciation expense is correct. b) A 3-year rental agreement was signed on Jan. 1 2020 and recorded as a prepaid asset. No rent expense has been recognized. c) 2019 ending inventory was overstated by $10,000; 2020 inventory understated by $8,000; 2021 inventory was correct. d) A machine with a 15-year useful life was expensed when purchased in 2020. e) Did not accrue interest expense on a note payable at Dec 31 2020. Interest expensed when paid in 2021.State the effect of the following errors if OVERSTATED, UNDERSTATED, or NO EFFECT. NO. ERRORS EFFECT IN 1. Omission of accrued expense in year 2021 Retained Earnings, 12/31/2022 2. Omission of prepaid expense in year 2021 Net income of 2022 3. Omission of accrued income in year 2021 Asset, 12/31/2022 4. Omission of unearned income in year 2021 Income of 2022 5. Sales of 2021 recorded as sales of 2022 Retained Earnings, 12/31/2022 6. Purchases of 2021 recorded as purchases of 2022 Retained Earnings, 12/31/2022 7. Inventory, 12/31/2021 is overstated Net income of 2022 8. Inventory, 1/1/2021 is understated Net income of 2022 9. Depreciation of 2021 is understated Net income of 2022 10. Interest income is recorded as Rent Income Net income
- IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the following instructions, indicate the following: ASSETS- if the transaction results to an asset LIABILITY- if the transaction results to a liability EQUITY- if the transaction results to an equity INCOME - if the transaction results to an income EXPENSE - if the transaction results to an expense WITHDRAWAL- if the transaction results to a withdrawal N/A- if the transaction does not result to any of the elements. Sale of P10,000 goods for P7,000 cash. Contribution of land and building from the owner to be used as the new business office. Receipts of goods from supplier with a billing invoice Receipt of cash from clients for services to be provided in the futureAn accrued expense amounting rm18000 was not recorded when ascertaining the profit year. The effect of this eror is that A. Net profit as well as liability are overstage B net profit is not affected but liability is understand C net profit is overstated and liability understand D. Net profit as well as liability are understatedListed below are nine technical accounting terms. Unrecorded revenue Adjusting entries Accrued expenses Book value Matching principle Accumulated depreciation Unearned revenue Materiality Prepaid expenses Required: Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting term described, or answer “None” if the statement does not correctly describe any of the terms. The net amount at which an asset is carried in the accounting records as distinguished from its market value. An accounting concept that may justify departure from other accounting principles for purposes of convenience and economy. The offsetting of revenue with expenses incurred in generating that revenue. Revenue earned during the current accounting period but not yet recorded or billed, which requires an…
