Chapter 2, Problem 2.11EYCT

Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2019, 2020, and 2021.      2019    2020    2021 Cash receipts from sales:                 On 2019 sales $295,000   $160,000   $  30,000  On 2020 sales –0–   355,000   90,000  On 2021 sales     408,000 Cash payments for expenses:        On 2019 expenses 185,000   67,000   25,000  On 2020 expenses 40,000a 160,000   55,000  On 2021 expenses   45,000b 218,000 a Prepayments of 2020 expenses. b Prepayments of 2021 expenses. Instructions a.    Using the data above, prepare abbreviated income statements for the years 2019 and 2020 on the cash basis. b.    Using the data above, prepare abbreviated income statements for the years 2019…

1.  which of the following transactions will result in the increase and decrease in liability? a. payment of loan by installmentb. borrowed money from the bankc. issued a promissory note in payment of a liabilityd. request for an extension of the date of payment 2.  a statement which shows where the money of the business is obtained and used? a. statement of financial positionb. statement of cash flowsc. cash budgetd. statement of revenues and expenses

Calculate the profit of a bank by preparing income and expenditure statement. -Assume that you are an accountant in a PNZ Bank. From the following particulars, prepare the profit and loss account of bank PNZ for the year ended 31-03-2020. Particulars OMR Particulars OMR Locker rent Discount on bills discounted Director and auditor fee Establishment Expenses Interest on loan Interest on fixed deposit Interest on cash credit Sundry expenses Impairment for credit loss Transfer fee Fee and commission expenses Provision for doubtful debts Decrease in net changes in face value of sale of investment 70,000 2,100,000 50,000 600,000 2,800,000 2,980,000 2,400,000 20,000 2,000 5,000 25,000 300,000 900 Interest on current account Interest on over draft Interest on savings bank account Postage and telegram Printing and stationary Discount on bills discounted Rent and taxes Income tax expenses Depreciation Fee and commission income Profit on exchange difference arising on foreign…