Accountingprepare a balance sheet and income statement using the data given. NrBusiness ActivityAmount, EURA man sets up a business. He has invested 1000his own money in a company's sharecapitalHe has invested his own auto truck121200He has got money from bank (short termcredit). Money were transferred to.company's accountPrimary goods were delivered. 60% ofthem were paid at once by money fromcompany's accountPrimary goods were utilized duringproduction processNet wages for production workers werecalculated2004Primary goods 220Value of utilizedprimary goods=10562010Wages were paidSalaries for administrative personnel7158.were calculated and paidInterest for credit was calculated and paid 5Depreciation of fixed asset was calculatedFinished goods were moved frommanufacturing department to a stockFinished goods were delivered topurchaser. Invoice was made out.102001130012Value of finishedgoods = 280Invoiceamount=1000500Purchaser has paid for finished goodsThe invoice for renting the stock wasreceivedThe invoice for renting the stock was paid1314101510N3

Income statement of the business shows all incomes and all expenses in the business and at the end…

Answered: prepare a balance sheet and income…

Business

Accounting

prepare a balance sheet and income statement using the data given.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 7P

See similar textbooks

Accounting

prepare a balance sheet and income statement using the data given.

Nr
Business Activity
Amount, EUR
A man sets up a business. He has invested 1000
his own money in a company's share
capital
He has invested his own auto truck
1
2
1200
He has got money from bank (short term
credit). Money were transferred to.
company's account
Primary goods were delivered. 60% of
them were paid at once by money from
company's account
Primary goods were utilized during
production process
Net wages for production workers were
calculated
200
4
Primary goods 220
Value of utilized
primary goods=105
6
20
10
Wages were paid
Salaries for administrative personnel
7
15
8.
were calculated and paid
Interest for credit was calculated and paid 5
Depreciation of fixed asset was calculated
Finished goods were moved from
manufacturing department to a stock
Finished goods were delivered to
purchaser. Invoice was made out.
10
200
11
300
12
Value of finished
goods = 280
Invoice
amount=1000
500
Purchaser has paid for finished goods
The invoice for renting the stock was
received
The invoice for renting the stock was paid
13
14
10
15
10
N3

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Compute returns on assets for AT&T and Verizon and answer the question below. Be sure to show your work. Key figures($ millions). AT&T Verizon Sales 126,723 110,875 Net Income 4,184 10,198 Average Assets 269,868 225,233 AT&T Verizon Which company is more successful in returning net income from its assets invested?
T/F Person A works for Global Payments Inc. They will take a portion of their pay check to buy Global Payments Stock every pay period. This is an example of Gain sharing.
Charles Schwab Corporation (SCHW) is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): InvestorServices AdvisorServices Revenues $5,411 $2,067 Operating income 2,031 962 Depreciation 180 54 Investor Services(in millions) Advisor Services(in millions) Estimated contribution margin 2211 1016 d. If Schwab decided to sell its “Advisor Services” accounts to another company, estimate how much operating income would decline under the following assumptions. Assume the fixed costs that serve Advisor investors would not be sold but would be used by the other sector: ____________ Assume the fixed assets were “sold”: ________________
In the chair sector in which the company operates, it has realized the purchase of 1000 pieces of commercial goods for a price of 100 TL in cash. Make the journal and general ledger entries?
Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Digitized Corp. and Very Network, Inc. and have assembled the following data. LOADING... (Click to view the income statement data.) Data Table Selected income statement data for the current year: Digitized Very Network Net Sales Revenue (all on credit) $418,290 $494,940 Cost of Goods Sold 210,000 256,000 Interest Expense 0 15,000 Net Income 62,000 70,000 (Click to view the balance sheet and market price data.) Data Table Selected balance sheet and market price data at the end of the current year: Digitized Very Network Current Assets: Cash $24,000 $21,000 Short-term Investments 42,000 19,000 Accounts Receivables, Net 36,000 46,000 Merchandise Inventory 67,000 98,000 Prepaid Expenses 22,000 18,000 Total…
PQR is the accounting intern for, a firm that has many small clients that need monthly accounting services. Ray has been asked by the partner in charge to analyze the asset section of firms’s balance sheets which follow: 2011 2012 Cash $2,500 $3,900 Accounts receivable, net 35,000 40,000 Inventory 85,000 122,000 Other current assets 3,400 4,110 Total current assets 125,900 170,010 Property, plant & equipment, net 180,000 230,000 Other assets 15,000 26,000 Total assets $320,900 $426,010 Required Prepare a common-size analysis of the assets section of the firms balance sheet for 2011 and 2012.Round all percentage answers to one decimal place
ABC Company borrowed 100,000 from the bank. Group of answer choices I has a 100,000 financing activity outflow It has a 100,000 investing activity inflow It has a 100,000 financing activity inflow It has a 100,000 investing activity outflow
Mr Len Naidoo, the owner of Widget Distributors, has in the past imported widgets. However from 1 January 20x8, he decided to manufacture the widgets himself. Here is the abridged statement of financial position of Widget Distributors at 31 December 20x7: Capital – Len Naidoo 2 000 Inventory (1 000 units) 800 Accounts payable 1 000 Accounts receivable 700 Bank 1 500 3 000 3 000 From a scrutiny of vouchers and other documents you find that these transaction have taken place during the year ended 31 December 20x8: 1. Cash transaction as per the cash book: Receipts: Capital introduced by Mr Naidoo R10 000 Accounts receivable R6 000 Cash sales R2 000 Payments: Accounts payable R7 000 Drawings- Mr Naidoo R2 500 Wages paid to manufacturing staff R3 000 Rent for factory R1 200 Hire of specialised machinery R1 300 2. Amount owing , totalling R3 500 were written off as bad debts. 3. 5 500 units were sold. 4. A royalty of 10 cents per completed unit manufactured during the year is payable in…
Starplus Limited is well known for its focus on customer satisfaction and this is highlighted in the company profile. Their “About Us” page on their website tells a story of service and growth, all centred around their customers. This, combined with the excellent quality products offered, has contributed to its success in the marketplace. At the end of 2022 the fixed assets (at carrying value) totalled R5 300 000, inventories amounted to R5 200 000, R2 100 000 was owed by trade debtors, cash in the bank amounted to R400 000, the ordinary share capital balance was R4 500 000, the accumulated undistributed profits amounted to R1 700 000, an amount of R5 900 000 was owed to Zap Bank in respect of a long-term loan and R900 000 was owed to the trade creditors. The sales of Starplus Limited for 2022 amounted toR8 000 000.The following projections are forecasts were made for 2023:Machinery with a cost price of R1 000 000 and accumulated depreciation of R1 000 000 is expected to be scrapped at…
Starplus Limited is well known for its focus on customer satisfaction and this is highlighted in the company profile. Their “About Us” page on their website tells a story of service and growth, all centred around their customers. This, combined with the excellent quality products offered, has contributed to its success in the marketplace. At the end of 2022 the fixed assets (at carrying value) totalled R5 300 000, inventories amounted to R5 200 000, R2 100 000 was owed by trade debtors, cash in the bank amounted to R400 000, the ordinary share capital balance was R4 500 000, the accumulated undistributed profits amounted to R1 700 000, an amount of R5 900 000 was owed to Zap Bank in respect of a long-term loan and R900 000 was owed to the trade creditors. The sales of Starplus Limited for 2022 amounted to R8 000 000. The following projections are forecasts were made for 2023: Machinery with a cost price of R1 000 000 and accumulated depreciation of R1 000 000 is expected to be…
Starplus Limited is well known for its focus on customer satisfaction and this is highlighted in the company profile. Their “About Us” page on their website tells a story of service and growth, all centred around their customers. This, combined with the excellent quality products offered, has contributed to its success in the marketplace. At the end of 2022 the fixed assets (at carrying value) totalled R5 300 000, inventories amounted to R5 200 000, R2 100 000 was owed by trade debtors, cash in the bank amounted to R400 000, the ordinary share capital balance was R4 500 000, the accumulated undistributed profits amounted to R1 700 000, an amount of R5 900 000 was owed to Zap Bank in respect of a long-term loan and R900 000 was owed to the trade creditors. The sales of Starplus Limited for 2022 amounted toR8 000 000.The following projections are forecasts were made for 2023:Machinery with a cost price of R1 000 000 and accumulated depreciation of R1 000 000 is expected to be scrapped at…
Smart Touch Learning began operations by receiving $23,400 cash and furniture of a fair value of $13,400 from James Smith. The business issued Smith shares of common stock in exchange for this contribution. Smart Touch Learning began operations by receiving $23,400 cash and furniture of a fair value of $13,400 from James Smith. The business issued Smith shares of common stock in exchange for this contribution. Date Accounts Debit Credit Dec. 1Dec. 4Dec. 12Dec. 15Dec. 18Dec. 20Dec. 21Dec. 22Dec. 25Dec. 27Dec. 28Dec. 29Dec. 30 Paid $1,800 cash for a four-month insurance policy on December 1. The policy begins December 1. Paid $1,800 cash for a four-month insurance policy on December 1. The policy begins December 1. Date Accounts Debit Credit Dec. 1Dec. 4Dec. 12Dec. 15Dec. 18Dec. 20Dec. 21Dec. 22Dec. 25Dec. 27Dec. 28Dec. 29Dec. 30 Paid $400 cash for office supplies on December 4. Paid $400 cash for…