Peakhurst Limited had the following trial balance at 1 January 2016:Debit $Credit $Cash200 000Accounts receivable600 000Inventory700 000Prepaid insurance60 000Prepaid rent50 000Equipment1 000 000Allowance for doubtful debt20 000Accumulated depreciation200 000Accounts payable500 000Revenue received in advance100 000Income tax payable500 000Loan570 000Share capitalRetained profits400 000320 0002 610 0002 610 000You are given the following additional information for the year ended 31 December 2016:a) Bad debts of $8000 were written off.b) It was decided that allowance for doubtful debts should be 4 per cent of accounts receivable.Required:1) Prepare journal entries for these transactions.2) Show the T-ledger accounts for the following for the year ended 31 December 2016:a) accounts receivableb) allowance for doubtful debtsc) bad debts expense

Journal: It is the first step of recording financial transactions. It is used to prepare the…

Answered: Peakhurst Limited had the following…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Similar questions

Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000
A selection of account balance from blue corp. are listed below. All balances are as of December 31,2017, except where noted:Accounts payable $7500Accounts receivable, 1/1/17 $5,250Accumulated depreciation $21500 building 65000Cash 12200Common stock 50000Delivery truck 9500Depreciation expenses 10750Dividends 3650Marketable equity securities 2400Account receivable 12/31/17 7125Inventory, 1/1/17 3050Supplies 5200Salaris 10400Salaris expenses 10400Net sales 61365Rent expenses 7850Retained earnings 1/1/17 25010Equipment 15700Prepaid expenses 2000Cost of goods sold 16350Notes payable (due 2019) 4400Inventory 12/31/17 4750 1) Determine the gross profit ratio?2) Determine the account receivable turnover?3) Determine the inventory turnover?4)Determine the debt to equity ratio as of December 31,2017?
Uptodate Projects Ltd has approached you to analyse and interpret their financial statements.The following amounts were extracted from the records of the company: 2019 2020 2021 R R RTurnover 200 000 220 000 250 000Cost of sales 140 000 150 000 165 000Profit before interest and tax 12 000 11 000 10 500Accounts receivable 16 500 25 000 29 600Accounts payable 13 000 14 700 17000 Inventory 18 750 26 000 30 400Bank/ (Overdraft)…
BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes P12,000,000; Rent expense for financial accounting purposes is P2,000,000 Rent expense for tax purposes is P1,000,000; Tax depreciation is P3,200,000 Accounting depreciation is P1,700,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%. Question: What is the amount of deferred tax asset? What is the net income after tax?
BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes P12,000,000; Rent expense for financial accounting purposes is P2,000,000 Rent expense for tax purposes is P1,000,000; Tax depreciation is P3,200,000 Accounting depreciation is P1,700,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%. Question: What is the amount of taxable temporary difference? What is the current tax expense?
BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes P12,000,000; Rent expense for financial accounting purposes is P2,000,000 Rent expense for tax purposes is P1,000,000; Tax depreciation is P3,200,000 Accounting depreciation is P1,700,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%. What is the net income after tax?
THe following trial balance was extracted from the books of ABC investment on 31 May 2021 Trial Balance as at 31 May 2021 dr cr Capital 1000 Motor Expenses 15 200 Return Outward 1350 Carriege Outward 1200 inventory 25800 Purchases 189650 Debtors 56400 Bank 84170 Drawings 34820 sales 265700 Return Ourtwards 760 Creditors 44440 Carriage Inwards 550 Motor Vehicle 120 500 Provision for doubtful debts 880 provision for depreciation 47340 Inventory as at 31 May 2021 was valued N$ 12 900 Required Prepare statemtn of comprehensive income and statement of financial position for the year ended 31 May 2021
On September 1, 2020, the account balances of Tom Cruise Repair, Inc. were asfollows.No Debit No Credit101 Cash £4,880 158 Accumulated DepreciationEquipment£2,100112 AccountsReceivable3,520 201 Accounts Payable 3,400126 Supplies 2,000 209 Unearned Service Revenue 1,400157 Equipment 18,000 212 Salaries and Wages Payable 500311 Share Capital-Ordinary 10,000320 Retained Earnings 11,000£28,400 £28,400During September, the following summary transactions were completed.Sept. 8 Paid £1,700 for salaries due employees, of which £1,200 is for September.10 Received £1,200 cash from customers on account.12 Received £3,400 cash for services performed in September.15 Purchased store equipment on account £3,000.17 Purchased supplies on account £1,200.20 Paid creditors £4,500 on account.22 Paid September rent £500.25 Paid salaries £1,050.27 Performed services on account and billed customers for services provided£1,600.29 Received £750 from customers for future service.Adjustment data consist of:1.…
On April 4, 2021, LASTNATOBEYBE, Inc. sold goods on account to acustomer for P1,000,000, terms were 2/10, n/30. The company factoredthe accounts receivable on April 4 to a financial institution on April 14,2021. The factor charged 8% and withheld 15% of the receivablesfactored.How much is the proceeds from factoring?
The accounts and balances shown below were gathered from Primer Corporation's trial balance on December 31, 2014. All adjusting entries have been made. Wages Payable ............................................$ 25,600Cash .................................................................17,700Mortgage Payable ....................................... 151,600Dividends Payable ......................................... 14,000Prepaid Rent ...................................................13,600Inventory ........................................................ 81,800Sinking Fund Assets ...................................... 52,400Short-Term Investments ................................15,200Premium on Bonds Payable ............................4,600Stock Investment in Subsidiary ..................102,400Taxes Payable ................................................ 22,800Accounts Payable ......................................... 24,800Accounts Receivable ....................................…
Flawless Company’s trial balance reflected the following account balances on December 31, 2019: Cash P 1,000,000Accounts payable, net of debit balance in suppliers’ accounts amounting to P25,000 1,000,000Bonds payable 3,400,000Premium on bonds payable 200,000Deferred tax liability 400,000Property dividends payable 400,000Income tax payable 300,000Note payable, due January 31, 2020 500,000Contingent liability 150,000Share dividends payable 320,000Cash dividends payable 210,000Reserve for contingencies 430,000Estimated expense of meeting warranties 335,000Estimated damages as a result of unsatisfactory performance on a contract 268,000Mortgage payable 1,000,000Loans payable (payable in five equal annual installments) 500,000 The P1,000,000 Cash account is net of bank overdraft of P300,000 and unreleased check of P100,000 and includingcustomer’s posted check of P50,000 and sinking fund amounting to P280,000 1. How much is the total current liabilities for the year ended December 31,…
The following is the trial balance of Swifty Corporation at December 31, 2020. SWIFTY CORPORATIONTRIAL BALANCEDECEMBER 31, 2020 Debits Credits Purchase Discounts $33,000 Cash $626,010 Accounts Receivable 346,500 Rent Revenue 59,400 Retained Earnings 528,000 Salaries and Wages Payable 59,400 Sales Revenue 3,630,000 Notes Receivable 363,000 Accounts Payable 161,700 Accumulated Depreciation—Equipment 92,400 Sales Discounts 47,850 Sales Returns and Allowances 57,750 Notes Payable 231,000 Selling Expenses 765,600 Administrative Expenses 326,700 Common Stock 990,000 Income Tax Expense 177,870 Cash Dividends 148,500 Allowance for Doubtful Accounts 16,500 Supplies 46,200 Freight-in 66,000…

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS