Financial Statements:
Financial statements are the statements prepared for the specific period which comprises the financial information of the organization. It includes a statement of income which shows the profitability of the business, balance sheet which shows the financial position in the terms of assets, liabilities, and capital, and cash flow statement which represents the
Income statement:
This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time. It is prepared to find out the net income of an organization.
Classified Balance Sheet:
A balance sheet is a statement showing position of all assets, liabilities and equity of the company at a specific time. When assets, liabilities and shareholders’ equity are further sub-categorized to make it more readable and understandable then it is called classified balance sheet
To Prepare: An income statement for the year 2018, and also prepare the balance sheet of Corporation MG.
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INTERMEDIATE ACCT VOL.2>CUSTOM<
- Serial Problem Business Solutions LO P3 Santana Rey receives the March bank statement for Business Solutions on April 11, 2020. The March 31 bank statement shows an ending cash balance of $67,266. The general ledger Cash account, No. 101, shows an ending cash balance per books of $67,781 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following. The bank erroneously cleared a $510 check against the company account in March that S.Rey did not issue. The check was actually issued by Business Systems. On March 25, the bank statement lists a $49 charge for the safety deposit box. Santana has not yet recorded this expense. On March 26, the bank statement lists a $113 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense. On March 31, the bank statement lists $34 interest earned on Business Solutions’s checking account for the month of…arrow_forwardQ2 Additional info ii) Cheque no. 299513 in the bank statement was wrongly debited by the bank. The cheque actually belongs to Sweet Sdn Bhd. Required: a) Prepare an Adjusted Cash Book. b) Prepare a Bank Reconciliation Statement for Sentosa Sdn Bhd as at 30 June 2020.arrow_forwardEB3. LO 7.2Match the special journal you would use to record the following transactions. A. Cash Receipts Journal i. Took out a loan from the bank B. Cash Disbursements Journal ii. Paid employee wages C. Sales Journal iii. Paid income taxes D. Purchases Journal iv. Sold goods with credit terms 1/10, 2/30, n/60 E. General Journal v. Purchased inventory with credit terms n/90 vi. Sold inventory for cash vii. Paid the phone bill viii. Purchased stock for cash ix. Recorded depreciation on the factory equipment x. Returned defective goods purchased on credit to the supplier. The company had not yet paid for them.arrow_forward
- SP 8 Santana Rey receives the March bank statement for Business Solutions on April 11, 2022. The March 31 bank statement shows an ending cash balance of $67,566. The general ledger Cash account, No. 101, shows an ending cash balance per books of $68,057 as of March 31 (prior to any reconciliation). A comparison of the bank statement with the general ledger Cash account, No. 101, reveals the following.A.The bank erroneously cleared a $500 check against the company account in March that S. Rey did not issue. The check was actually issued by Business Systems. B. On March 25, the bank statement lists a $50 charge for a safety deposit box. Santana has not yet recorded this expense. C. On March 26, the bank statement lists a $102 charge for printed checks that Business Solutions ordered from the bank. Santana has not yet recorded this expense. D. On March 31, the bank statement lists $33 interest earned on Business Solutions’s checking account for the month of March. Santana has not yet…arrow_forwardQno2. a) The cash transactions and cash balances of XYZ, Inc., for December were as follows:1. The ledger account for Cash showed a balance at December 31 of $114,800.2. The December bank statement showed a closing balance of $104,078.3. The cash received on December 31 amounted to $15,950. It was left at the bank in the night depository chute after banking hours on December 31 and therefore was not recorded by the bank on the December statement.4. Also included with the December bank statement was a debit memorandum from the bank for $50 representing service charges for December. 5. A credit memorandum enclosed with the December bank statement indicated that a non- interest bearing note receivable for $4,028 from Johnson, left with the bank for collection, had been collected and the proceeds credited to the account of XYZ, Inc.6. Comparison of the paid checks returned by the bank with the entries in the accounting records revealed that check no. 821 for $520, issued December 15 in…arrow_forwardP4.4 (LO 2, 3, 4, 5 ) (Multiple- and Single-Step Statements, Retained Earnings Statement) The following account balances were included in the trial balance of Twain Corporation at June 30, 2020. Sales revenue $1,578,500 Depreciation expense (office furniture and equipment) $7,250 Sales discounts 31,150 Cost of goods sold 896,770 Property tax expense 7,320 Salaries and wages expense (sales) 56,260 Bad debt expense (selling) 4,850 Sales commissions 97,600 Maintenance and repairs expense (administration) 9,130 Travel expense (salespersons) 28,930 Delivery expense 21,400 Office expense 6,000 Entertainment expense 14,820 Sales returns and allowances 62,300 Telephone and Internet expense (sales) 9,030 Dividends received 38,000 Depreciation expense (sales equipment) 4,980 Interest expense 18,000 Maintenance and repairs expense (sales) 6,200 Income tax expense 102,000…arrow_forward
- Problem 3. The books of Marikit’s Service, Inc. disclosed a cash balance of P687,570 on December31, 2020. The bank statement as of December 31 showed a balance of P547,800. Additionalinformation that might be useful in reconciling the two balances follows:a. Check number 748 for P30,000 was originally recorded on the books as P45,000.b. A customer’s note dated September 25 was discounted on October 12. The note wasdishonored on December 29 (maturity date). The bank charged Marikit’s account forP142,650, including a protest fee of P2,650.c. The deposit of December 24 was recorded on the books as P28,950, but it was actually adeposit of P27,000.d. Outstanding check totaled P98,850 as of December 31.e. There were bank service charges for December of P2,100 not yet recorded on the books.f. Marikit’s account had been charged on December 26 for a customer’s NSF for check forP12,960g. Marikit properly deposited P6,000 on December 3 that was not recorded by the bank.h. Receipts of December 31…arrow_forwardProblems on Bank Reconciliation Q6 Prepare Bank Reconciliation statement as on March 31, 2019. On this date the passbook of Al Nasr Industries LLC showed a balance of RO 27,500. -Cheques of RO 14,000 directly deposited by a customer. -Cheques for RO 13,500 were issued during the month of March but of these cheques for RO 1,500 were not presented by the end of March. -The bank collected RO 2,500 as dividend on shares. -Cheques of RO 17500 were paid into bank but of RO 8500 were realized in the month of April.arrow_forwardQ.3 Explain the following terms in your own words:a) On which side opening cash balance should be recorded in the cash book?b) Is it possible that we sale goods for Rs. 20,000 and receive Rs. 19,000, if yes than explainwith reason?c) If bank credited interest on securities in our account than on which side we should recordthat interest in the double column cash book?d) In which case bank debited our account and what will be the accounting treatment in ourbooks?e) If owner pay his university dues from the bank balance of business, what will be theeffect of this transaction on cash book?arrow_forward
- PA14. LO 4.4Prepare an adjusted trial balance from the adjusted account balances; solve for the one missing account balance: Cash (assume accounts have normal balances).arrow_forwardQuestion 4 The following is a summary from the cash book of Lim Enterprise for October 2017. RM RM Opening balance b/f 1,407 Payments 15,520 Receipts 15,073 Closing balance c./f 960 16,480 16,480 On investigation, you discover that: Bank charges of RM35 shown on the bank statement have not been entered in the cash book. A cheque drawn for RM47 has been entered in error as a receipt. A cheque for RM18 has been returned by the bank marked ‘refer to drawer’, but it has not been written back in the cash book. An error of transposition has occurred in that the opening balance in the cash book should have been carried down as RM1,470. Three cheques paid to suppliers for RM214, RM370 and RM30 have not yet been presented to the bank. The last page of the paying-in-book shows a deposit of RM1,542 which has not yet been credited to the account by the bank. The bank…arrow_forwardQuestion 3 2 The following are the cash book and bank statement of DRS Enterprise for the month of December 2020: Cash Book (Bank Account only) 2020 RM 2020 RM Dec 1 Balance b/d 460 3 Cash 2,600 8 Lim 1,600 14 Mat 1,816 18 Jay and Kay 900 24 Bidin 1,120 31 Balance c/d 544 total 9,040 Dec 4 Cheque no. 40010 Ruby 2,000 6 Cheque no. 40011 Zain 1,700 8 Cheque no. 40012 Harris 680 10 Cheque no. 40013 Wong 760 15 Cheque no. 40014 Daud 1,600 21 Cheque no. 40015 Lim 2,300 total 9,040 Jan 1 Balance b/d 544 Transaction Codes CH Cash SO Standing Order CB Chequebook CQ Cheque CT Credit Transfer BC Bank Charge Required: Prepare the bank reconciliation statement as at 31 December 2020.arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningAccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,