What is the total income ? The following balances are related to XYX LLC.Bank Balance16,000 Purchases195000Return Inwards4,000 Direct Wages18000Sales425,000 Carriage Inwards35000Rent Received20,100 Return Outwards16000Interest Revenue15,600 office Expense19,500Office Rent15,000 office EquipmentMaintenance6000Salesman Salary4,200 Sales PromotionExpense4500Internet Charges800Advertising Expense18000Opening StockOffice Insurance Expense6,50085000Dividend Income18200Commission Income20400Closing Stock55,000

Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…

The following balances are related to XYX LLC . Bank Balance 16,000 Purchases 195000 Return Inwards 4,000 Direct Wages 18000 Sales 425,000Carriage Inwards 35000 Rent Received 20,100 Return Outwards 16000 Interest Revenue Office Rent 15,600 office Expense 19,500 15,000 office Equipment Maintenance 6000

The following balances are related to XYX LLC . Bank Balance 16,000 Purchases 195000 Return Inwards 4,000 Direct Wages 18000 Sales 425,000Carriage Inwards 35000 Rent Received 20,100 Return Outwards 16000 Interest Revenue Office Rent 15,600 office Expense 19,500 15,000 office Equipment Maintenance 6000

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 9RQSC: Assume that an organization asserts that it has $35 million in net accounts receivable. Describe...

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Assume that an organization asserts that it has $35 million in net accounts receivable. Describe specifically what management is asserting with respect to net accounts receivable.
What accounting method (cash or accrual) would you recommend for the following businesses? a. A gift shop with average annual gross receipts of 900,000. b. An accounting partnership with average annual gross receipts of 12 million. c. A drywall subcontractor who works on residences and has annual gross receipts of 3 million. d. An incorporated insurance agency with average annual gross receipts of 28 million. e. A sole proprietor operating a retail clothing store with average annual gross receipts of 12 million. f. A sole proprietor operating a widget manufacturing plant with average annual gross receipts of 27 million.
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000
The following balances are related to XYX LLC . Bank Balance 16,000 Purchases 195000 Return Inwards 4,000 Direct Wages 18000 Sales 425,000 Carriage Inwards 35000 Rent Received 20,100 Return Outwards 16000 Interest Revenue 15,600 Office Expense 19,500 Office Rent 15,000 Office Equipment Maintenance 6000 Salesman Salary 4,200 Sales Promotion Expense 4500 Internet Charges 800 Advertising Expense 18000 Opening Stock 85000 Office Insurance Expense 6,500 Dividend Income 18200 Commission Income 20400 Closing Stock 55,000 1- What will be the total Selling and distribution expense? 2- What will be the Total income 3- What will be the total office expense?
The following accounting information exists for Aspen and Willow companies. Aspen Willow Cash $ 18,000 $ 28,000 Wages payable 20,500 24,000 Merchandise inventory 25,035 59,600 Building 60,000 120,000 Accounts receivable 33,710 40,625 Long-term notes payable 75,000 130,000 Land 45,000 50,000 Accounts payable 37,000 43,500 Sales revenue 220,000 280,000 Expenses 185,000 235,000 Requireda-1. Determine the amount of current assets and current liabilities for each company.a-2. Compute the current ratio for each company.b. Assuming that all assets and liabilities are listed above, compute the debt-to-assets ratios for each company.c-1. Determine which company has the greater financial risk in the short term.c-2. Determine which company has the greater financial risk in the long term
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 R Turnover 200 000 220 000 250 000 Cost of sales 140 000 150 000 165 000 Profit before interest and tax 12 000 11 000 10 500 Accounts receivable 16 500 25 000 29 600 Accounts payable 13 000 14 700 17 000 Inventory 18 750 26 000 30 400 Bank/ (Overdraft) Required: 4 000 (1000) (2 000) Explain the purpose of financial statement Calculate each of the following ratios for each of the three (3) years: Accounts receivable collection period Inventory holding period Accounts payable payment period Current ratio Acid test ratio Comment on the company’s working capital management in light of the analysis undertaken in above
Which of these items belong on the statement of financial position (SOFP)? Debit Credit Buildibgs at cost 740 Buildings,accumulated depreciation 60 Plant at cost 220 Plant,accumulated depreciation 110 Bank balance 70 Revenue 1,800 Purchases…
Newark Company has provided the following information:Cash sales, $600,000Credit sales, $1,500,000Selling and administrative expenses, $480,000Sales returns and allowances, $105,000Gross profit, $1,510,000Increase in accounts receivable, $70,000Bad debt expense, $48,000Sales discounts, $58,000Net income, $1,030,000How much are Newark's net sales?how would i find net sales without revenue? I think it what I am trying to find
EMM, Inc. has the following balance sheet: EMM, Incorporated Balance Sheet as of 12/31/X0 Assets Liabilities and Equity Cash $ 1,200 Accounts payable $ 4,900 Accounts receivable 8,900 Bank note payable 7,700 Inventory 6,100 Long-term assets 4,400 Equity 8,000 $ 20,600 $ 20,600 It has estimated the following relationships between sales and the various assets and liabilities that vary with the level of sales: Accounts receivable = $3,560 + 0.35 Sales, Inventory = $2,356 + 0.28 Sales, Accounts payable = $1,449 + 0.20 Sales. If the firm expects sales of $27,000, what are the forecasted levels of the balance sheet items above? Round your answers to the nearest dollar. Accounts receivable: $ Inventory: $ Accounts payable: $ Will the expansion in accounts payable cover the expansion in inventory and accounts receivable? Round your answers to the nearest dollar. The expansion in accounts payable of $ the total…
The data below are from the records of Almanor, Inc. on December 31, 2021: Accounts payable net of supplier’s accounts with debit balances P 680,000 Cash balance in ABC Bank 1,240,000 Cash overdraft with XYZ Bank 80,000 Customers’ accounts with credit balances 25,000 Supplier’s accounts with debit balances 65,000 Dividends in arrears on preference shares 400,000 Employees’ income tax payable 100,000 Estimated warranty payable 50,000 Estimated premium claims outstanding 90,000 Income tax payable 320,000 Notes payable issued in 2020 maturing in 20 quarterly installments beginning April 1, 2021 8,000,000 Salaries payable 140,000 Deferred tax liability 80,000 9. The amount to be shown as total current liabilities on Almanor’s statement of financial position at December 31, 2021 is: