130ebro12 0editer130ehton ledger14 debtors jourmal15 Sales2. List the steps in the specific process when a business sells the stock on credit to their debtors. (10)QUESTION 2Debtors JournalLerato traders is a business owned by Lerato Smith. The debtors journal was chewed by the owmer'spuppy and must be redone.The business uses 75% mark-up on costRequired: Complete the Debtors Jounal of Lerate Traders for December 2020DOC DAYDETAILSFOLSALESCOST OF SALESR Moroka6.A01R290015N MabaseR6200A0220A03P Khoca24RMaputiaR14875R8500A0426GFergusonA05R1785028A06L ViakazR1645031A07P MilanaR1200R78015R44580I6 Marks

A debtors journal is maintained by a company to keep a record of its debtors or the account…

Answered: QUESTION 2 Debtors Journal terato…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 37P

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P15-25 Accounting for debt and equity investments This problem continues the Canyon Canoe Company situation from Chapter 14. Amber Wilson is pleased with the growth of the business and has decided to invest its temporary excess cash in a brokerage account. The company had the following securi-ties transactions in 2019. Jul. 1 Purchased 8,000 shares in Adobe Outdoor Adventure Company for $3 per share. Canyon Canoe does not have significant influence over Adobe. Jul 7 Purchased 35% of the stock of Bison Backpacks consisting of 43,750 shares of stock (out of a total of 125,000 shares) for $5 per share. Canyon Canoe does have significant influence over Bison. Jul 10 Purchased a bond from Camelot Canoes with a face value of $80,000. Canyon Canoe intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31. Sep. 30 Received dividends of $0.15 per share from Adobe. Nov. 1 Received dividends of $0.30 per share from Bison. Dec. 31 Received…
A sole trader has the following items in the book accounts: Sales R60 000; Cost of Sales R50 000; Opening Stock R10 000; Purchases R40 000; Wages R20 000 and Office Rent R10 000. What is the value of net profit /loss?
1. The following is the income statement of Al Kawther Trading LLC for the year end 2019. Income Statement RO Sales 124670 Less: Cost of Goods Sold Opening inventory 13455 Add: Purchases 71320 Less: Closing inventory -9875 (74900) Gross Profit 49770 Other Income : Dividend received from shares and bonds 6,000 Total Income 55770 Less: Operating Expenses Cost of Computers 2500 Salary & Wages 12400 Customs duty 450 Reserve for Bad debts 1200 Motor expenses 7500 Fire Insurance (for goods) 800 Donation 2000 Municipality taxes 2300 (29150) Net Profit 26620 Additional Information: a) Bad debts of 2018 of RO500 recovered in this year. Such bad debts were deductible expenses in the concerned year and not included in current year profit. b) The accountant overvalued opening inventories by RO245 and undervalued closing inventories by RO160. c) The company owned motor vehicle cost RO15000. In the law the depreciation rate attracted @ 33.33%. In the current year company also paid for repair…
Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio. Please help with the both questions mentioned
Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio.
Following is the trial balance of Standard Ltd as on 31st March 2020: Debit Credit Stock on 31st March 2019 75000 Sales 350000 Purchases 245000 Wages 50000 Discount 5000 Furniture and fittings 17000 Salaries 7500 Rent…
Consider the following worksheet with information extracted from a financial statement:2020 Assets Liabilities EquityReported (P) 400 000 100 000 300 000You identify that a firm has incorrectly recognized revenue on P50 000 worth of goods in the form of receivables. You decide to reverse this sale and the associated inventory which has a value of P40 000. Using the worksheet approach and assuming a corporate tax rate of 30 percent, what would be the adjusted debt to assets ratio?
GGG Traders recruited you as their accountant for 30 June 2020 financial year. The business has the following information. Credit Sales N$ 305 000 Mark-up 30% Opening Stock N$ 18 600 Closing Stock N$ 24 800 Total Expenses N$ 34 250 Debtors Turnover 15 Times Creditors Turnover 8 Times Current Assets N$ 68 400 Current Liabilities N$ 35 500 Calculate the following a) Gross profit b) Cost of Sale c) Purchases d) Inventory turnover (days) e) Net profit margin f) Debtors Balance g) Creditors Balance h) Current Ratio i) Cash balance j) Bank Overdraft
SLM, Inc., with sales of $1,000, has the following balance sheet:SLM, Incorporated Balance Sheet as of 12/31/X0assetsLiabilities and equityAccounts receivable$200Trade accounts payable$ 200Inventory400Long-term debt600Plant800Equity600$1, 4 0 0$1, 4 0 0It earns 10 percent on sales (after taxes) and pays no dividends.a.Determine the balance sheet entries for sales of $1,500 using the percent of sales method of forecasting
GGG Traders recruited you as their accountant for 30 June 2020 financial year. the business has the following information. Credit sales $ 305 000 Mark-up 30% Opening stock $ 18 600 Closing stock $ 24 800 Total Expenses $ 34 250 Debtors Turnover 15 Times Creditors turnover 8 times Current Assets $ 68 400 Current Liabilities $ 35 500 Calculate the following a Groos profit b Cost of sales c purchases d inventory turnover days e Net profit margin f Debtors Balance g Creditors Balance h current ratio i Cash balance j Bank overdraft Round of your answers to the nearest zero decimal place
The most recent financial statements for WFY, Co., are shown here: INCOME STATEMENT SALES 35250,00 COSTS 24675,00 TAXABLE INCOME 10575,00 TAXES(35%) 3701,25 NET INCOME 4582,20 BALANCE SHEET CURRENT ASSEST 10400 DEBT 17500 FIXED ASSEST 28750 EQUITY 21650 TOTAL 39159 TOTAL 39150 Assets and costs are proportional to sales. Debt and equity are not. The company pays a payout ratio of 60%, and the company wishes to maintain a constant payout ratio. The forecast for next year’s sales is €37500. a) What is the external financing needed? b) Calculate the internal growth rate. How do you interpret it?
14. The trial balance of Rollins Inc. included the following accounts as of December 31, 2021: Debits Credits Sales revenue 5,300,000 Interest revenue 37,000 Loss on sale of investments 15,000 Loss on debt investments 126,000 Gain on projected benefit obligation 230,000 Cost of goods sold 3,860,000 Selling expense 340,000 Restructuring costs 150,000 Interest expense 15,000 General and administrative expense 240,000 The loss on debt investments represents a decrease in the fair value of debt securities and is classified as part of other comprehensive income. Rollins had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 25%. Required:Prepare a 2021 single, continuous statement of comprehensive income for Rollins Inc. Use a multiple-step income statement format. (Amounts to be deducted should be indicated with a…

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