(1) Ivan started business (as a bookseller) with $15,000 in business bank account (2) Made purchases for $1,700 cash (3) Further purchases for $400 on credit from Moore (4) Accrued utilities of $ 400 (5) Bought stationery for $60 on credit (6) Bought an old van for $5,000 from Petros promising to pay a half on the value later (7) Sold rare books to Greene for $1,300 cash (8) Paid Moore $190 cash (9) Sold books on credit to Doyle for $2,400 (10) Bought more stationery for $40 cash Required Prepare: (iv) a statement of profit or loss (income statement) for the year to date; (v) a statement of financial position (balance sheet).
(1) Ivan started business (as a bookseller) with $15,000 in business bank account (2) Made purchases for $1,700 cash (3) Further purchases for $400 on credit from Moore (4) Accrued utilities of $ 400 (5) Bought stationery for $60 on credit (6) Bought an old van for $5,000 from Petros promising to pay a half on the value later (7) Sold rare books to Greene for $1,300 cash (8) Paid Moore $190 cash (9) Sold books on credit to Doyle for $2,400 (10) Bought more stationery for $40 cash Required Prepare: (iv) a statement of profit or loss (income statement) for the year to date; (v) a statement of financial position (balance sheet).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
(1) Ivan started business (as a bookseller) with $15,000 in business bank account
(2) Made purchases for $1,700 cash
(3) Further purchases for $400 on credit from Moore
(4) Accrued utilities of $ 400
(5) Bought stationery for $60 on credit
(6) Bought an old van for $5,000 from Petros promising to pay a half on the value later
(7) Sold rare books to Greene for $1,300 cash
(8) Paid Moore $190 cash
(9) Sold books on credit to Doyle for $2,400
(10) Bought more stationery for $40 cash
Required
Prepare:
(iv) a statement of profit or loss (income statement) for the year to date;
(v) a
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