Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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The following Trial Balance has been extracted from the accounting records of Jagga, a private company, at 31 December 2020: Debit RM’000 Credit RM’000 Administrative Expenses 2500 Bank overdraft 250 10% Debentures 600 Distribution Costs 1200 Dividends Received 130 Long term Investment 730 Furniture & Fittings Cost 100 Acc. Depreciation 40 Interim Ordinary Dividend 80 Ordinary Share Capital 900 Plant & Equipment Cost 7600 Acc. Depreciation 5000 10% Preferred share capital 200 Preferred Dividend 20 Retained Earnings at 1 January 2320 Provisions for doubtful debts 160 Purchases 7250 Sales 13260 Share Premium 400 Inventory 2170 Trade Payables 990 Trade Receivables 2600 24250 24250 The following additional information is provided: 1. The inventory at 31 December 2020 was valued at RM 2,500,000. 2. Depreciation is to be charged as follows: Furniture & Fittings (all relating to the administration): 10% on cost. Plant & Equipment (all relating to cost of sales): 50% on the…
The Donahoo Western Furnishings Company was formed on December 31, 2017, with $1,000,000 in equity plus $500,000 in long-term debt. On January 1, 2018, all the firm's capital was held in cash. The following transactions occurred during January 2018:
January 2: Donahoo purchased $1,000,000 worth of furniture for resale. It paid $500,000 in cash and financed the balance using trade credit that required payment in 60 days.
January 3: Donahoo sold $250,000 worth of furniture that it had paid $200,000 to acquire. The entire sale was on credit terms of net 90 days.
January 15: Donahoo purchased more furniture for $200,000. This time, it used trade credit for the entire amount of the purchase, with credit terms of net 60 days.
January 31: Donahoo sold $500,000 worth of furniture, for which it had paid $400,000. The furniture was sold for 10 percent cash down, with the remainder payable in 90 days. In addition, the firm paid a cash dividend of $100,000 to its stockholders and paid off…
The Donahoo Western Furnishings Company was formed on December 31, 2017, with $1,000,000 in equity plus $500,000 in long-term debt. On January 1, 2018, all the firm's capital was held in cash. The following transactions occurred during January 2018:
January 2: Donahoo purchased $1,000,000 worth of furniture for resale. It paid $500,000 in cash and financed the balance using trade credit that required payment in 60 days.
January 3: Donahoo sold $250,000 worth of furniture that it had paid $200,000 to acquire. The entire sale was on credit terms of net 90 days.
January 15: Donahoo purchased more furniture for $200,000. This time, it used trade credit for the entire amount of the purchase, with credit terms of net 60 days.
January 31: Donahoo sold $500,000 worth of furniture, for which it had paid $400,000. The furniture was sold for 10 percent cash down, with the remainder payable in 90 days. In addition, the firm paid a cash dividend of $100,000 to its stockholders and paid off…
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- The Donahoo Western Furnishings Company was formed on December 31, 2017, with $1,000,000 in equity plus $500,000 in long-term debt. On January 1, 2018, all the firm's capital was held in cash. The following transactions occurred during January 2018: January 2: Donahoo purchased $1,000,000 worth of furniture for resale. It paid $500,000 in cash and financed the balance using trade credit that required payment in 60 days. January 3: Donahoo sold $250,000 worth of furniture that it had paid $200,000 to acquire. The entire sale was on credit terms of net 90 days. January 15: Donahoo purchased more furniture for $200,000. This time, it used trade credit for the entire amount of the purchase, with credit terms of net 60 days. January 31: Donahoo sold $500,000 worth of furniture, for which it had paid $400,000. The furniture was sold for 10 percent cash down, with the remainder payable in 90 days. In addition, the firm paid a cash dividend of $100,000 to its stockholders and paid off…arrow_forwardImagine you are the financial accountant of Happiness Ltd. You have the following final balances for the different accounts on 31st December 2021 (the accounting-year end): Value (£) Buildings 300,000 Transportation element 148,000 Accumulated depreciation (buildings) at 01/01/2021 52,500 Accumulated depreciation (transportation element) at 01/01/2021 36,800 Salary expense 16,500 Share premium 7,200 Capital 20,000 Retained earnings at 31/12/2020 97,900 Long term debt 190,300 Cash 60,000 Trade receivables 62,500 Inventory at 31/12/2020 40,000 Purchases 10,000 Sales 200,000 Allowance for trade receivables 2,500 Accrued Expenses 19,500 Trade payables 10,300 Required: a)Prepare the Trial Balance corresponding to the above information. b)Considering the following additional information, prepare the Income Statement for Happiness Ltd. on 31/12/2021. Additional…arrow_forwardThe Donahoo Western Furnishings Company was formed onDecember 31, 2014, with $1,000,000 in equity plus $500,000in long-term debt. On January 1, 2015, all of the firm’s capitalwas held in cash. The following transactions occurred duringJanuary 2015:• January 2: Donahoo purchased $1,000,000 worth of furniturefor resale. It paid $500,000 in cash and financed the balanceusing trade credit that required payment in 60 days.• January 3: Donahoo sold $250,000 worth of furniture that ithad paid $200,000 to acquire. The entire sale was on creditterms of net 90 days.• January 15: Donahoo purchased more furniture for $200,000.This time, it used trade credit for the entire amount of thepurchase, with credit terms of net 60 days.• January 31: Donahoo sold $500,000 worth of furniture,for which it had paid $400,000. The furniture was soldfor 10 percent cash down, with the remainder payablein 90 days. In addition, the firm paid a cash dividend of$100,000 to its stockholders and paid off $250,000 of…arrow_forward
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