i need the answer quickly The following balances are extracted from Al-Mustafa Trading Company as on31/12/2021StocksSumssales revenue250000salaries125000earned discount500rent a shop30000insurance15000Cashdebtorsmerchandise inventoryreceipt paperscreditorsProfits from the sale of assets?500005000075000Payment paperscapitalwater and electricityphone fees65000150001500Personal withdrawals4000bankfurniture5000Real estate revenue10000If you know that1. Cash equivalent to 70% of the capital2. Debtors equal 25% of the capital3. Merchandise inventory equals 200% of the capital4. The bank is equivalent to 10% of the capitalRequired: Preparing the trial balance for Al-Mustafa Trading Company as on31/12/2021

Let the balance of capital account be X therefore , Cash balance = 0.7X Debtors…

Answered: The following balances are extracted…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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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
Please try to answer accurately and accordance with requirements.Thank you!The general ledger of Emerates Traders Ltd includes the following accounts as at 30 June 2018:$000Sales Revenue 8,280Dividend Received 126Interest Received 65Cost of Sales 1,105Selling and Distribution expenses 450Administration expenses 1,550Finance costs 16Valuation loss on trading investments (considered a material item) 250Income tax expense charged to profit and loss 1,500Expenses classified by nature include:Auditors Remuneration:Audit of accounts 20Information technology controls advice 5 25Depreciation expense:Buildings 120Plant and Equipment 225 345Additional InformationThe valuation loss on investments held for trading is not tax deductible.Task 4a. Complete a Statement of Comprehensive Income showing expenses classified byfunction on the face of the Income Statement together with notes to the incomestatement including the material item.- Note that Emerates Traders Ltd discloses material items on the…
Following is the unadjusted Trail balance of Konark Mansi Pallavi & Co as on 31.03.2020 Store Equipment 20000 Accumulated depreciation, store equipment 2000 Merchandise inventory 17400 Office supplies 2730 Trade receivable 9700 Cash 2870 Prepaid store rent 12000 Prepaid Insurance 6000 Trade payable 7580 Share Capital 35000 Retained Earning 7100 Sales 115760 Sales Return and allowances 1170 Sales discount 1030 Purchase 69230 Purchase return and allowances 1180 Purchase discount 2150 Freight In 4200 Office salary expenses 5100 Sales salary expenses 9600 Advertisement expenses 2300 Interest expenses 1130 Telephone expenses 910 Store rent expenses 5400 Total 170770 170770 Prepare the statement of profit and loss and Balance sheet…
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)…
The company made a sale of goods for RO. 10000 (cost RO 12000) and received 45% in cash and balance on the account. Which of the following is the correct presentation on the accounting equation? Select one: a. Assets = Liabilities + Owners' Equity -12000 (stock of goods) +4500 (Cash) + 5500 (Receivables) = 0 + - 2000 (Loss) b. Assets = Liabilities + Owners' Equity -12000 (stock of goods) +4500 (Cash) = + 5500 (Payable) + - 2000 (Loss) c. Assets = Liabilities + Owners' Equity -10000 (stock of goods) +4500 (Cash) = + 5500 (Payable) + + 2000 (Profit) d. Assets = Liabilities + Owners' Equity -10000 (stock of goods) +4500 (Cash) = + 5500 (Receivables) + + 2000 (Profit)
How to compute this problem? Problem:The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets…
The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). Atwood Franz co. Franz Co. Particular Book Value Book Value fair Value 12/31/2021 12/31/2021 12/31/2021 Cash 870 240 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570 (240 (240 Accrued expenses (270 (60 (60 Long-term liabilities (2,700 (1,020 (1,120 Common stock ($20 par) (1,980 Common stock ($5 par) (420 Additional paid-in capital (210 (180 Retained earnings 1/1/18 (1,170 (480 Revenues (2,880 (660 Expenses 2,760 620 Note: Parenthesis indicates a credit balance. Assume an acquisition business combination took place on December 31, 2021. Atwood issued 50 shares of its common stock with a fair value of $35 per…
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…
The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands). Atwood Franz Co. Franz Co. Book Value Book Value Fair Value 12/31/2021 12/31/2021 12/31/2021 Cash $ 870 $ 240 $ 240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570 ) (240 ) (240 ) Accrued expenses (270 ) (60 ) (60 ) Long-term liabilities (2,700 ) (1,020 ) (1,120 ) Common stock ($20 par) (1,980 ) Common stock ($5 par) (420 ) Additional paid-in capital (210 ) (180 ) Retained earnings 1/1/18 (1,170 ) (480 ) Revenues (2,880 ) (660 )…
Mark Co. started operations in January 2019. From your examination of Mark’s financial statements, you were able to obtain the following information:                                                                         12/31/19                      12/31/20                                     Inventory                     P 126,000                     P133,200                                     Trade Receivable              85,800                         60,000                                     Trade Payable                   82,800                         85,500                                     Sales                               960,000                     990,000 Additional information provides that Celestine paid its suppliers a total of P763,200. In 2020, accounts totaling P6,000 were written off as uncollectible, In addition, bad debts expense of P4,500 per year was recognized in 2019 and 2020. How much was the cash collected during 2020 resulting from sales in 2019…
Mark Co. started operations in January 2019. From your examination of Mark’s financial statements, you were able to obtain the following information:                                                                         12/31/19                      12/31/20                                     Inventory                     P 126,000                     P133,200                                     Trade Receivable              85,800                         60,000                                     Trade Payable                   82,800                         85,500                                     Sales                               960,000                     990,000 Additional information provides that Celestine paid its suppliers a total of P763,200. In 2020, accounts totaling P6,000 were written off as uncollectible, In addition, bad debts expense of P4,500 per year was recognized in 2019 and 2020. How much cash was disbursed during 2020 for purchases of merchandise? P…
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…

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