16:42 PPOA N l 18%!Required Class RMary onlinerch 20X9 her withPrepare thbalance seed09:5628.11 This question also relates to extended trial balances (see Exhibit 28.2)From the following trial balance of John Brown, store owner, prepare a trading account and profitand loss account for the year ended 31 December 20X7, and a balance sheet as at that date, takinginto consideration the adjustments shown below:Trial Balance as at 31 December 20x7DrSalesPurchasesSales returns400,000350,0005,000Purchases returns6,200Opening stock at 1 January 20x7Provision for doubtful debts100,000800Wages and salariesRatesnatesTelephoneShop fittings at costVan at cost30,00060001,00040,00030,0009,800Debtors and creditorsBad debts7,000200CapitalBank balance179,0003,000Drawings18,000593,000593,000) Closing stock at 31 December 20X7 £120,000.(ii) Accrued wages £5,000.(i) Rates prepaid £500.(iv) The provision for doubtful debts to be increased to 10 per cent of debtors.() Telephone account outstanding £220.(vi) Depreciate shop fittings at 10 per cent per annum, and van at 20 per cent per annum, on cost.28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a soletrader.Trial Balance as at 31 May 20X6DrCrSalesPurchases138,07882,3505,144CarriageDrawingsRent, rates and insurancePostage and stationeryAdvertisingSalaries and wages7,80066223,0011,33026,420877Bad debts333Part 4 • Adjustments for financial statementsProvision for doubtful debts130Debtors12,120CreditorsCash in handCash6,471177at bankStock as at 1 June 20X5Equipment1,00211,927at cost58,000accumulated depreciationCapital19,00053,091216,770216,770The following additional information as at 31 May 20X6 is available:(a) Rent is accrued by £210.(b) Rates have been prepaid by £880.(d £2,211 of carriage represents carriage inwards on purchases.(d) Equipment is to be depreciated at 15% per annum using the straight line method.(e) The provision for doubtful debts to be increased by £40.() Stock at the dose of business has been valued at £13,551.Required:Prepare a trading and profit and loss account for the year ended 31 May 20X6 and a balance sheetas at that date.(Association of Accounting Technicians)28.13 Mrbalances has Un extracted from his ledofinandal uearhas been trading for som ye irs as a wine merchant. The following list ofat 30 April 20X7, the end ofis most recent

The P&L statement tells about the profits and losses earned by the business. The balance sheet…

Sales Purchases Sales returns Purchases returns 400,000 350,000 5000 6,200 Opening stock at 1 January 20X7 Provision for doubtful debts Weges and salaries Rates 100,000 800 Telephone Shop fittings at cost Van at cost Debtors and creditors Bad debts 30,000 6,000 1,000 40,000 30,000 9,800 7,000 200 Capital Bank balance 179,000 3,000 18,000 593,000 Drawings 593,000

Sales Purchases Sales returns Purchases returns 400,000 350,000 5000 6,200 Opening stock at 1 January 20X7 Provision for doubtful debts Weges and salaries Rates 100,000 800 Telephone Shop fittings at cost Van at cost Debtors and creditors Bad debts 30,000 6,000 1,000 40,000 30,000 9,800 7,000 200 Capital Bank balance 179,000 3,000 18,000 593,000 Drawings 593,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 46E: OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had...

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OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019. Required: 1. Prepare a single-step income statement for ERS for 2019. 2. CONCEPTUAL CONNECTION Compute net profit margin for ERS. If ERS is able to increase its service revenue by $100,000, what should be the effect on future income? 3. CONCEPTUAL CONNECTION Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS future profitability?
Marked out of 20.00P Flag questionusing the income summary account for the month ofSiren MarketingAdjusted Trial BalanceMay 31, 2022Account TitleCashDebitCredit$8, 600Accounts Receivable$2, 500Prepaid Insurance$2,700 Accounts PayableUnearned RevenueKirk, Capital$1, 200$1, 800$5, 880Kirk, Withdrawals$1,600Service Revenue$8, 620Advertising Expenselnsurance ExpenseRent Expense Total$790$450$860$17,500 $17,500No comma or dollar sign should be included in the imput icklPrepare the closing entries in the proper order. For transactions that have more than 1 debit or more than 1 deditDebitAccount Title and Explanation Date May 31
3. The following was the trial balance extract from ABC Trading as at 31 March 2019.Particulars DEBIT (RM) CREDIT (RM)Purchases and Sales 22,800 41,000Inventory on 1 April 2018 5,100Capital 8,170Bank overdraft 4,300Cash 140Discount allowed and received 1,440Returns inwards and outwards 790Carriage outwards 2,180Office expenses 450Fixtures and fittings 1,210Delivery van 2,000Accounts receivables and account payables 11,900 6,720Rent and insurance 1,790Drawings 2,850Wages and salaries 8,980TOTAL 61,690 61,690Additional information as at 31 March 2019:a. Inventory on 31 March 2019 was RM4,250b. Wages and salaries accrued as at 31 march 2019 was RM210; outstanding office expenses was RM30c. Rent and insurance prepaid was RM150Required:i. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 March 2019ii. Prepare Statement of Financial Position as at 31 March 2019
Ex5.19From the following accounts (not in order), prepare a post-closing trial balance for Winter Co. onOctober 31, 201X. Note: These balances are before closing.Accounts Receivable $19,950P. Winter, Capital $45,300Legal Supplies 9,700P. Winter, Withdrawals 3,000Office Equipment 54,400Legal Fees Earned 28,000Repair Expense 2,700Accounts Payable 48,000Salaries Expense 1,550Cash 30,000Adjustment Dataa. Insurance expired, $100.b. Dance supplies on hand, $1,100.c. Depreciation on dance equipment, $2,000.d. Salaries earned by employees but not to be paid until October, $1,000.Your task is to do the following:1. Prepare a worksheet.2. Journalize adjusting and closing entries.
Question 2:The following Trial Balance was extracted from the books of Mr Smith as at30 December 20X1: Debit CreditRM RMSales and Purchases 68,080 215,580Returns 220 380Inventories as at 1 January 20X1 18,400Rent received 9,000Building at cost 520,000Advertising expenses 27,600Trade receivables and Trade Payables 168,000 100,000Salaries and wages 68,000Motor vehicles at cost 100,000Insurance 24,000Sundry expenses 15,000Accumulated depreciation: Motor vehicles 40,000Accumulated depreciation: Buildings 64,000Electricity and water 7,100Allowance for doubtful debts 1,200Discounts 3,000 7,000Printing and stationery 2,496Cash in hand 136,000Bank overdraft 736Capital 720,0001,157,896 1,157,896 Additional information:1. Rent received in arrears as at 31 December 20X1 was RM1,000.2. Insurance includes RM2,000 paid for January and February 20X2.3. Depreciation charges are to be provided as follows:- Motor vehicles at 10% per annum on net book value- Buildings at the rate of 1% per annum on…
Merah Sdn. BhdUnadjusted Trial Balance as at 30 June 2020 RM RMCash 15,400 Account Receivables 25,000 Inventory 1 July 2019 68,000 Prepaid Insurance 10,800 Office Supplies On Hand 12,500 Furniture And Fittings 120,000 Accumulated Depreciation : Furniture And Fittings 12,000Account Payable 51,100Capital 68,000Sales 785,400Sales Return 2,600 Sales Discount…
Question 4Young Traders is owned by Yvonne Young. Young Traders is not a VAT vendor and uses the perpetualinventory system. Goods are sold at a mark‐up of 50% on cost price. The following pre‐adjustment trialbalance appeared in the books of Young Traders at the end of their current financial year, 30 April 2020:Pre‐adjustment Trial Balance of Young Traders as at 30 April 2020Debit (R) Credit (R)Capital (1 May 2019) 1 200 000Vehicles 550 000Accumulated Depreciation on Vehicles (1 May 2019) 205 000Fixed deposit (ABBA Bank) (12% p.a.) 75 000Inventory 149 000Debtors Control 123 500Allowance for Credit Losses (1 May 2019) 2 500Creditors Control 50 100Bank 199 400Sales 1 467 500Cost of Sales 914 000Sales Returns 70 000Salaries and Wages 640 000Stationery 84 500Carriage on Sales 23 700Credit Losses 13 500Telephone 82 500R2 925 100 R2 925 10020 2020© The Independent Institute of Education (Pty) Ltd 2020Page 10 of 14Additional information and adjustments at year‐end:1. According to a physical…
Question The following pre‐adjustment trial balance appeared in the books of Central Perk Furniture Storeat the end of their financial year. IGNORE VAT.Pre‐adjustment trial balance of Central Perk Furniture Store for the year ended 31 March 2020.Fol. Debit (R) Credit (R)Statement of financial position sectionCapital B1 500 000.00Drawings B2 25 000.00Land and buildings B3 865 000.00Vehicles B4 220 987.00Equipment B5 156 760.00Accumulated depreciation: Equipment(1 April 2019)B6 54 320.00Accumulated Depreciation: Vehicles(1 April 2019)B7 22 580.00Bank B8 22 430.00Debtors Control B9 35 600.00Allowance for Credit Losses‐ 1 April 2019 B10 1 780.25Petty Cash B11 1 378.98Trading inventory (1 April 2019) B12 27 865.43Mortgage Loan B13 287 650.00Creditors Control B14 31 420.00SARS(UIF/SDL/PAYE) B15 23 290.6520 2020Page 6 of 7Fol. Debit (R) Credit (R)Nominal accounts sectionSales N1 1 167 371.07Sales Returns N2 25 340.87Purchases N3 520 389.76Purchases returns N4 76 540.32Service Income N5 10…
Q4: On 31/12/2020, the following balances appeared in the trial balance of ABC Company ABC Co. Partial Trial Balance December 31 Prepaid insurance 1,500 Supplies 1,000 Unearned service revenue 1,500 Equipment 50,000 Additional information: An insurance policy examination showed SR1,000 of expired insurance An inventory count showed SR200 of unused shop supplies still available Depreciation expense on shop equipment, SR10,000 SR800 of the Unearned service account balance was earned by year-end. Required : Make the necessary adjusting entries. Show the impact of these adjustments on the income statement and the balance sheet statement.
Question 2:Tarcy Enterprise is operated by Priscilla Tam. She provided the followingTrial Balance for the year ended 30 June 20X1: Dr CrRM RM Inventory, 1 July 20X0 160,0006% Long term loan 200,000Water and electricity 4,300Bank 6,000Capital 1,000,000Carriage inwards 1,800Purchases and Sales 956,000 1,254,600Cash 8,800Allowance for doubtful debts, 1 July 20X0 1,000Custom duty 3,000Trade receivables and payables 136,000 68,000Bad debts 3,700Carriage outwards 3,000Drawings 12,000Freehold premises 800,000Motor vehicles 100,000Plant and machinery 300,000Accumulated depreciation: motor vehicles 12,000Accumulated depreciation: plant & machinery 24,000General expenses 2,200Interest on loan 3,500Discounts 600 800Advertisement 16,000Returns 4,500 3,000Salaries 60,000Commission received 6,0002,575,400 2,575,400 Additional information:1. Closing inventory was valued at RM175,000.2. Included in the purchases were goods worth RM6,000 which had beentaken by Priscilla for family use. No recording…
Q L. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31 December, 2020 and Balance Sheet as on that date: Cr. (Rs.) Dr. (Rs.) 10,000 46,000 1,50,200 3,400 22,660 600 38,600 840 1,640 280 3,300 4,000 200 29,000 Drawings Stack on 01/01/2019 Purchases and Purchases Returns Cash in Hand Bank Balance Freehold Premises Trade Expenses Printing, stationery and Advertising Professional Charges Commission Received Investments as on 1" Jan. @ 10% Interest on above Sundry Debtors and Creditors Wages Salaries Capital Income Tax Discount allowed and received Sales Returns and Sales Bills Receivable /Bills Payable Office furniture Rent, Rates and Insurance Bad Debts Provisions Total Adjustments: 36,000 25,000 14,000 1,14,000 1,600 6,300 550 3.200 4,600 2,08,950 10,000 3,050 4,000 670 3.71,320 3,71,320 (a) Provide for wages Rs. 5,000. (b) Write Off 5%…
2. The following is extracted trial balance of Brahim Labi Sdn Bhd, after his first year’s trading, Brahim Labi Sdn BhdTrial Balance as at 30 June 2020Particulars Debit (RM) Credit (RM)Sales 265,900Purchases 154,870Rent 4,200Lighting and heating expenses 530Salaries and wages 51,400Insurance 2,100Buildings 85,000Fixtures 1,100Account receivable 31,300Sundry expenses 412Account payable 15,910Cash at bank 14,590Drawings 30,000Vans 16,400Motor running expenses 4,110Capital 114,202TOTAL 396,012 396,012Inventory at 30 June 2020 was RM16,280.Required: i. Statement of Profit and Loss and Others Comprehensive Income for the year ended 30 June 2020.ii. Statement of Financial Position as at 30 June 2020.