On February 1, 20Z1, Mira Delamar opened a store that sells school supplies. Mira wanted to know the results of operating store. The following were taken from the accounting records of Mira's store. Balances Debit Credit Sales - 114, 576 Sales return - 1,544 Sales discount - 1,675 Purchases - 61,558 Purchase return - 504 Purchase discount - 1,076 Freight-in - 765 Utilities expense - 4,000 Salaries expense - 14,000 Rent expense - 10,000 Depreciation - 500 Additional Information : a.) Physical inventory conducted at the end of the year revealed an ending inventory of P15, 345 b.) Depreciation is for shelves and cabinets used to display racks and storage in the store c.) Mira has a small office inside the store. Allocate 15% of rent and utilities to general and administrative expense d.) 25% Of Emily's salaries are allocated to General and Administrative Expense. Aside from tending the store, she was also tasked to file receipts and maintain some records. Requirements : 1. All accounts above have normal balances. Indicate whether the abow accounts have debit or credit balances 2. Prepare the year ended of Statement of Comprehensive Income using the single-step approach 3. Prepare the year ended Statement of Comprehensive Income using the multi-step approach
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
On February 1, 20Z1, Mira Delamar opened a store that sells school supplies. Mira wanted to know the results of operating store. The following were taken from the accounting records of Mira's store.
Balances Debit Credit
Sales - 114, 576
Sales return - 1,544
Sales discount - 1,675
Purchases - 61,558
Purchase return - 504
Purchase discount - 1,076
Freight-in - 765
Utilities expense - 4,000
Salaries expense - 14,000
Rent expense - 10,000
Additional Information :
a.) Physical inventory conducted at the end of the year revealed an ending inventory of P15, 345
b.) Depreciation is for shelves and cabinets used to display racks and storage in the store
c.) Mira has a small office inside the store. Allocate 15% of rent and utilities to general and administrative expense
d.) 25% Of Emily's salaries are allocated to General and Administrative Expense. Aside from tending the store, she was also tasked to file receipts and maintain some records.
Requirements :
1. All accounts above have normal balances. Indicate whether the abow accounts have debit or credit balances
2. Prepare the year ended of Statement of Comprehensive Income using the single-step approach
3. Prepare the year ended Statement of Comprehensive Income using the multi-step approach
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