Imustration IIThe following transactions relates to the business activities of Raqeeba Ltd for the month ofMarch 2018.March 1. Started business with ¢8,000,000 in the bank and ¢4,000,000 cash.March 2. Bought goods on credit from Theo Ltd ¢760,000 and Shuraim Enterprise ¢800,000.March 6. Cash sales to date ¢5,040,000March 8. Paid Rent & Rate by cash ¢600,000March 9. Sols goods on credit to Alexa Ltd ¢3,050,000 and Tyler Ltd ¢4,800,000March 10. Bought Machinery & Equipment by cheque ¢16,000,000March 12. Bought goods for cash ¢800,000March 14. Bought goods on credit from Nicky Enterprise ¢7,050,000March 16. Paid wages & salaries by cheque ¢6,000,000March 17. Paid Shuraim Enterprise 760,000 as part settlement of our indebtednessMarch 18. Sold goods on credit to Tyler Enterprise, ¢9,000,000; less 10% trade discount.March 20. Received ¢2,050,000 cheque from Alexa Ltd in settlement of their debt onaccount.March 20. Returned goods worth ¢60,000 to Theo LtdMarch 20. Paid Nicky Enterprise a cheque ¢5,500,000 on account of the our indebtednessMarch 21. Paid Theo Enterprise the amount due after deducting a cash discount of ¢30,000March 22. Tyler Ltd returned goods amounting to ¢800,000 for damages.March 25. Received a cheque of ¢9,000,000 from Tyler Ltd after deducting 10% cashdiscount.March 27. Sales to general customers receiving a cheque of ¢8,000,000March 28. Cash sales to date ¢6,000,000March 30. Paid Electricity Charges by cash ¢1,000,000March 31. Bought Office Computers by cheque ¢7,000,000.Required: Record the above transactions in the ledger accounts of Raqeeba Ltd, balance offthe accounts and prepare a trial balance as at 31st March 2018.Balancing the AccountsThe accounts are balanced on the last day of the periodIf the totals on each side of the account are equal, double underline them toclose the accountIf the account contains only one entry, insert the same figure on the other sidewith the label 'Balance carried down (c/d)'. Under the total on the originalside, show the 'Balance brought down (b/d)' at the beginning of the nextperiodIf the totals on an account are unequal, add a balancing figure to the side withthe smaller total and label it 'Balance c/d'. Under the total on the other side,show the 'Balance b/d' at the beginning of the next period

Ledger The purpose of preparing the ledger account to get the final account balance of each account…

March 25. Received a cheque of ¢9,000,000 from Tyler Ltd after deducting 10% cash discount. March 27. Sales to general customers receiving a cheque of ¢8,000,000 March 28. Cash sales to date ¢6,000,000 March 30. Paid Electricity Charges by cash ¢1,000,000 March 31. Bought Office Computers by cheque ¢7,000,000. Required: Record the above transactions in the ledger accounts of Raqeeba Ltd, balance off the accounts and prepare a trial balance as at 31" March 2018.

March 25. Received a cheque of ¢9,000,000 from Tyler Ltd after deducting 10% cash discount. March 27. Sales to general customers receiving a cheque of ¢8,000,000 March 28. Cash sales to date ¢6,000,000 March 30. Paid Electricity Charges by cash ¢1,000,000 March 31. Bought Office Computers by cheque ¢7,000,000. Required: Record the above transactions in the ledger accounts of Raqeeba Ltd, balance off the accounts and prepare a trial balance as at 31" March 2018.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 30BE: Brief Exercise 2-30 Transaction Analysis Galle Inc. entered into the following transactions during...

See similar textbooks

Similar questions

(Appendix 3.1) Cash-Basis Accounting Puntarelli Contracting keep its accounting records on a cash basis during the year. At year end, it adjusts its books to the accrual basis for preparing its financial statements. At the end of 2018, Puntarelli reported the following balance sheet items. It is now the end of 2019. The companys checkbook shows a balance of 4,700, which includes cash receipts from customers of 51,300 and cash payments of 49,300. An examination of the cash payments shows that: (1) 30,600 was paid to suppliers, (2) 12,700 was paid for other operating costs (including 7,200 paid on January 1 for 2 years annual rent), and (3) 6,000 was withdrawn by T. Puntarelli. On December 51, 2019, (1) customers owed Puntarelli Contracting 55,900, (2) Puntarelli owed suppliers and employees 7,000 and 900, respectively, and (3) the ending inventory was 6,300. Puntarelli is depreciating the equipment using straight line depreciation over a 10-year life (no residual value). Required: 1. Using accrual based accounting, prepare a 2019 income statement (show supporting calculations). 2. Using accrual-based accounting, prepare a December 31, 2019, balance sheet (show supporting calculations).
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000
Cornerstone Exercise 1-18 Balance Sheet An analysis of the transactions of Cavernous Homes Inc. yields the following totals at December 31, 2019: cash, $3,200; accounts receivable, $4,500; notes payable, $5,000; supplies, $8,100; common stock, $7,000; and retained earnings, 9,800. Required: Prepare a balance sheet for Cavernous Homes Inc. at December 31 , 2019.
Effects of transactions on Accounting equation On Time Delivery Service had the following selected transactions during November: 1. Received cash from issuance of common stock, $75,000. 2. Paid rent for November, $5000. 3. Paid advertising expense, $3,000. 4. Received cash for providing delivery services, $34,500. 5. Borrowed $10,000 from Second National Bank to finance its operations. 6. Purchased a delivery van for cash, $25,000. 7. Paid interest on note from Second National Bank, $75. 8. Paid salaries and wages for November, $10,000. 9. Paid dividends, $2,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (9), in a vertical column, and inserting at the right of each number the appropriate letter from he following list: a. Increase in an asset, decrease in another asset. h. Increase in an asset, increase in a liability. c. Increase in an asset, increase in stockholders’ equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in stockholders equity.
Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Income Statement and Balance Sheet Fort Worth Corporation began business in January 2016 as a commercial carpet-cleaning and drying service. Shares of stock were issued to the owners in exchange for cash. Equipment was purchased by making a down payment in cash and signing a note payable for the balance. Services are performed for local restaurants and office buildings on open account, and customers are given 15 days to pay their accounts. Rent for office and storage facilities is paid at the beginning of each month. Salaries and wages are paid at the end of the month. The following amounts are from the records of Fort Worth Corporation at the end of its first month of operations: Required Prepare an income statement for the month ended January 31, 2016. Prepare a balance sheet at January 31, 2016. What information would you need about Notes Payable to fully assess Fort Worths longterm viability? Explain your answer.
Case 1-74 Comparative Analysis: Under Armour, lnc., versus Columbia Sportswear Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com Required: Answer the following questions: What were the major sources and uses of cash for each company?
Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.
Financial statements Outlaw Realty, organized August 1. 20Y7, is owned and operated by Julie Baxter. How many errors can you find in the following financial statements for Outlaw Realty, prepared after its first month of operations? Assume that the cash balance on August 31, 20Y7, is $51,600 and that cash flows from operating activities is reported correctly.
Return on assets Tiffany & Co. (TIF) designs and sells jewelry including rings, watches, and necklaces throughout the world. The folk wing data (in millions) n taken from recent financial statements of Tiffany: Compute the return on assets for Tiffany using the preceding data. Round to one decimal place.
Brief Exercise 2-30 Transaction Analysis Galle Inc. entered into the following transactions during January. Borrowed $50,000 from First Street Bank by signing a new payable. Purchased $25,000 of equipment for cash. (Continued) Paid $500 to landlord for rent for January. Performed services for customers on account, $10,000. Collected $31000 from customers for services performed in Transaction d. Paid salaries of $2,500 for the current month. Required: Show the effect of each transaction using the following model.