Prepare the following for the year ended 31 December 2020i. Accounts payable and accounts receivables accountsii. Income statement iii. Balance sheet activated. To keep using Word without interruption, activate before Monday, 17 May 2021.Activate3. All cash and cheques received were paid into the bank account immediately. Janetestimates the following receipts for the yearCheque received from trade receivables $194,500Cash Sales$ 32,7004. Depreciation is to be written-off the buildings at 20% per annum and Fixtures and Fittingat 10 % per annum.5. At December 31, 2020, building expenses owing was $4,582, and insurance paid inadvance was $5,354.6. Included in the amount paid for Fixtures and fittings were:A table bought for $2,600, which Janet resold during the year at cost, some woodenshelving (cost $1,500), which Janet used in building an extension to her personal garage.7. Cheque written for personal use during the year amounted to $43,0008. Other balances at 31 December 31, 2020 were:2$Trade accounts receivable23,04219,89028,126|Trade accounts payableInventory of furnitureted Kingdom)D Fo SECTION AJanet Wilson has run a furniture business for many years, but has never kept adequateaccounting records. However, a need to obtain a loan for the expansion of the business hasnecessitated the preparation of the final accounts for the year ended December 31, 2020. Sheis seeking your help in the preparation of the statements.1. Janet is able to provide you with the following information about her financial positionat January 1, 2020: inventory of furniture $21,420; Trade accounts receivable $20,286;Trade accounts payable $18,196; Buildings $25,200; Fixtures and Fittings $23,400,building expenses owing $4864, insurance prepaid $ 4,000, bank $8,8402. Cheques drawn during the year were estimated as follows:Trade payablesElectricityTelephone54,84312,18011,220Rent15,50013,36015,60012,39214,732Advertising & PromotionFixtures and FittingsInsuranceBuilding expensesKingdom)D, Focus

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Description: Prepare the following for the year ended 31 December 2020i. Accounts payable and accounts receivables accountsii. Income statement iii. Balance sheet activated. To keep using Word without interruption, activate before Monday, 17 May 2021.Activate3. A

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Answered: Prepare the following for the year…

Business

Accounting

Prepare the following for the year ended 31 December 2020 i. Accounts payable and accounts receivables accounts ii. Income statement iii. Balance sheet

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 21E

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On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?
Janet Wilson has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for the expansion of the business has necessitated the preparation of the final accounts for the year ended December 31, 2020. She is seeking your help in the preparation of the statements. 1. Janet is able to provide you with the following information about her financial position at January 1, 2020: inventory of furniture $21,420; Trade accounts receivable $20,286; Trade accounts payable $18,196; Buildings $25,200; Fixtures and Fittings $23,400,- building expenses owing $4864, insurance prepaid $ 4,000, bank $8,840 2. Chequesdrawn during the year were estimated as follows: Trade payables Electricity Telephone Rent Advertising & Promotion Fixtures and Fittings Insurance Building expenses 54,843 12,180 11,220 15,500 13,360 15,600. 12,392 14,732 2020/2021 - Semester 2 Financial Accounting /3. All cash and cheques received were paid into the bank…
Transactions for Joan Jett CPA for the month of October 2020 are presented below. Journalize each transaction in proper format. You may omit journal explanations. Oct 1 Joan invested $42,000 cash to start her business. Oct 2 Purchased land costing $28,000 for cash. Oct 3 Purchased equipment from Staples costing $18,000 for $4,000 cash and the remainder on credit. Oct 4 Purchased supplies on account from ABC Company for $800. Oct 7 Paid $1,200 for a one-year insurance policy. Oct 8 Billed $4,000 for accounting services provided to M. Mott. Oct 9 Received $3,500 cash for services performed. Oct 13 Received $4,000 for services previously performed for M. Mott. Oct 22 Paid wages to employees for $2,800. Oct 31 Additionally, Joan discovers a mathematical error made in 2016 resulting in the understatement of depreciation expense by $35,000.
Question On December 31, 2020, the balances of the accounts appearing in the ledger of Home City Furnishings Company, a furniture wholesaler, are as follows:
PROBLEM: While examining the December 31, 2022 financial statements of Bukidnon Company, a new client, you discover the following: 1. Inventory at January 1, 2022, had been overstated by P 30,000. 2. Inventory at December 31, 2022 was understated by P 50,000. 3. A three year insurance policy had been purchased on January 2, 2021, for P 15,000. The entire amount was charged as an expense in 2021. 4. During 2022, Bukidnon received a P 10,000 cash advance from a customer for merchandise to be manufactured and shipped during 2023. The P10,000 was credited to Sales Revenue. Bukidnon's gross profit on sales is 50%. 5. Net income reported on the 2022 income statement (before reflecting any adjustments for the above items) is P 215,000. QUESTION: What is the proper net income for 2022?
While examining the December 31, 2022 financial statements of Bukidnon Company, a new client, you discover the following: 1. Inventory at January 1, 2022, had been overstated by P 30,000. 2. Inventory at December 31, 2022 was understated by P 50,000. 3. A three year insurance policy had been purchased on January 2, 2021, for P 15,000. The entire amount was charged as an expense in 2021. 4. During 2022, Bukidnon received a P 10,000 cash advance from a customer for merchandise to be manufactured and shipped during 2023. The 10,000 was credited to Sales Revenue. Bukidnon's gross profit on sales is 50%. 5. Net income reported on the 2022 income statement (before reflecting any adjustments for the above items) is P 215,000. QUESTION: What is the proper net income for 2022?
Gawucho Furniture Manufacturing Company (Gawucho) commenced business on 1st January, 2019, preparing account to 31st December each year. The accountant of the business has provided you with the below information.Assets Note Original Cost (USD)Furniture 1 424,000Plywood 2 130,000Motor Vehicle 3 350,000Plant and Machinery 4 100,000Total Assets 1,004,000Additional Information1. The Furniture was produced on 1st March, 2019 for sales but Gawucho used GH¢ 20,000 of these Furniture in its Administration offices. No sales was made during the year.2. Plywood was purchased on 1st January, 2019 for the production of the furniture. 3. Motor Vehicle was acquired on 1st January, 2019 to convey furniture to customers’ destination only.4. Plant and machinery was bought on 1st October, 2019 for production of furniture.5. The business depreciates its asset at the rate of 20% on straight line method on one month ownership basis.6. All the above assets existed as of 31st December, 2019.Required a. Draft…
Gawucho Furniture Manufacturing Company (Gawucho) commenced business on 1st January, 2019, preparing account to 31st December each year. The accountant of the business has provided you with the below information.Assets Note Original Cost (GH¢)Furniture 1 424,000Plywood 2 130,000Motor Vehicle 3 350,000Plant and Machinery 4 100,000Additional Information's 1. The Furniture was produced on 1st March, 2019 for sales but Gawucho used GH¢ 20,000 of these Furniture in its Administration offices. No sales was made during the year.2. Plywood was purchased on 1st January, 2019 for the production of the furniture.3. Motor Vehicle was acquired on 1st January, 2019 to convey furniture to customers’ destination…
While examining the December 31, 2022 financial statements of Lark Company, a new client, you discover the following: Inventory at January 1, 2022, had been overstated by P 30,000. Inventory at December 31, 2022 was understated by P 50,000. A three year insurance policy had been purchased on January 2, 2021, for P 15,000. The entire amount was charged as an expense in 2021. During 2022, Bukidnon received a P 10,000 cash advance from a customer for merchandise to be manufactured and shipped during 2023. The 10,000 was credited to Sales Revenue. Bukidnon's gross profit on sales is 50%. Net income reported on the 2022 income statement (before reflecting any adjustments for the above items) is P 215,000. QUESTION: What is the proper net income for 2022?
Make sure all parts are DONE! Reference Photo attached for formating of the general ledger portion Comprehensive Problem For the past several years, Kell Dice has operated a part-time consulting business from his home. As of June 1, 2020, Kell decided to move to rented quarters and to operate the business, which was to be known as Dice Consulting, on a full-time basis. Dice Consulting entered into the following transactions during June. Transactions: June: Kell Dice deposited $55,000 into Dice Consulting as the sole owner. Dice Consulting purchased supplies, $3,500; and office equipment, $17,500 with a 3 year note payable of $10,000 and the remainder in cash. Paid three months’ rent on a lease rental contract, $ 6,000. Paid the yearly premium on property and casualty insurance policies, $3,000. Paid cash for a newspaper advertisement, $120. Received cash from clients as an advance payment for services to be provided…
Required: Prepare the following, December 31, 2019, financial statements: Income Statement Retained Earnings Statement Balance Sheet December 31, 2019, adjusted trial balance is provided below. Prepare the fiscal year-end closing entries. Prepare the January 1, 2020 opening trial balance. Prepare the journal entries for the first six months of 2020. The owners provided a written summary of activities they believe accounting entries need to be prepared (see page 2). The owners would like to know the current (as of 6/30/20) cash and the inventory balance. They would like you to provide a “T” account showing the activity in each account.
PROBLEM 1 While preparing the financial statements of Nick Corporation for the year 2020, the accountant noted that there were some errors and omissions in the books of the company on December 31, 2019. There were neither additional errors nor omissions at the end of December 31, 2020.The items that the accountant failed to adjust in 2019 are:1) Merchandise in transit to the company was lost. Term: FOB destination. Invoice amount is P20,000.2) Accrued office salaries, P1,000.3) Supplies used, P200. Supplies, an asset account, was charged for supplies purchased.4) Prepaid rent, P250. Rent expense account was debited for rental payments.5) Accrued interest on notes receivable, P50.6) Dividends declared, P25,000.7) Accrued miscellaneous expenses, P100. However, checks to pay them were prepared on January 2, 2020; these checks were antedated on December 29, 2019.8) Bank charges for December 2019, P25.9) Merchandise inventory on hand was valued at P1,000 instead of P2,000.10) Advance…