1. Determine the profit or loss for the year ended 30 September 2019 (Use comparison method)2. Explain TWO (2) disadvantages of using comparison method when determining profit or loss for accounting period from incomplete record. Daisy operates a beauty salon. She does not keep proper records for her businesstransactions. The valuation for her business assets and liabilities are estimated as follows:1 Jan 2019RM40,00012,00010,0006,0005,0009,00018,00031 Dec 2019RM40,00015,00016,0007,0008,00010,00018,000PremisesFixture and FittingsEquipmentSuppliesBankАсс. РаyablesLoanDaisy also withdrew RM2,000 cash on 1 July 2019 and she had also contributed RM5,000cash as additional capital on 30 November 2019.

Under comparison method, all assets, liabilities of two different periods are compared in order to…

1. Determine the profit or loss for the year ended 30 September 2019 (Use comparison method) 2. Explain TWO (2) disadvantages of using comparison method when determining profit or loss for accounting period from incomplete record.

1. Determine the profit or loss for the year ended 30 September 2019 (Use comparison method) 2. Explain TWO (2) disadvantages of using comparison method when determining profit or loss for accounting period from incomplete record.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 10DQ

See similar textbooks

Related questions

Q: Which of the following approaches is used to determine the recognition of an impairment loss of…

A: In this question, we are required to determine the best approach used to determine the recognition…

Q: Generally accepted methods of accounting for a change in accounting principle include restating…

A: Whenever a company is opts for a new accounting principle in its current financial statements. The…

Q: Using practical example discuss why current asset is not seen not part of the income statement

A: Answer: As per Q/A guidelines, first question is answered. Please repost the question to be answered…

Q: The modified accrual basis ______. Multiple select question. What solution is it below? (A)…

A: Accrual basis and cash basis are two different methods of accounting used in financial reporting.…

Q: Which method of recording bad debt loss is consistent with accrual accounting? A. Allowance…

A: Allowance for doubtful debts is known as a contra asset account i.e used to decrease the value of…

Q: Which of the following is not a type of adjusting entry? a. Depreciation of long-term physical…

A: In accounting, adjusting entries are journal entries usually made at the end of an accounting period…

Q: . Which of the following adjusting entries cannot be reversed? a. An adjusting entry to accrue an…

A: Solution: Adjusting entries are prepared at the end of accounting period adjust the books to record…

Q: Which of the two methods of accounting for uncollectible accounts provides for the recognition of…

A: Allowance method: Under the Allowance method the estimated bad debts expenses are recorded using…

Q: Failure to record the typical balance day adjustment to the Unearned Revenue account would: Select…

A: Unearned Revenue: If you get money for a service or product that has not yet been offered or…

Q: Under the U.S. GAAP, which of the following is not an approach used to determine when to report an…

A: The U.S. GAAP are accounting policies followed by US companies for financial reporting purposes.

Q: A company made an error in calculating and reporting amortization expense in Year 1. The error was…

A: INTRODUCTION: Generally Accepted Accounting Principles, or GAAP, is the abbreviation. A collection…

Q: O O O O BIOWIng statement is a correct statement about the direct write-off method for calculating…

A: Account Receivables -Money owed to a company by customers for goods or services rendered but not…

Q: Which of the following is not a retrospective-type accounting change? A. Cost recovery method to…

A: Answer is option D) D. Percent of sales method to aging method in recognizing doubtful accounts.…

Q: What is the effect of omission of prepaid expense in net income during the year of error? a.…

A: Prepaid expenses should be deducted from the particular expense to which it relates in the…

Q: a. Company A increases the allowance for doubtful accounts (ADA). Using the old estimate, ADA would…

A: Accounts receivable:- This refers to the money that a business receives from customers who have used…

Question

1. Determine the profit or loss for the year ended 30 September 2019 (Use comparison method)

2. Explain TWO (2) disadvantages of using comparison method when determining profit or loss for accounting period from incomplete record.

Daisy operates a beauty salon. She does not keep proper records for her business
transactions. The valuation for her business assets and liabilities are estimated as follows:
1 Jan 2019
RM
40,000
12,000
10,000
6,000
5,000
9,000
18,000
31 Dec 2019
RM
40,000
15,000
16,000
7,000
8,000
10,000
18,000
Premises
Fixture and Fittings
Equipment
Supplies
Bank
Асс. Раyables
Loan
Daisy also withdrew RM2,000 cash on 1 July 2019 and she had also contributed RM5,000
cash as additional capital on 30 November 2019.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

As the legal representative of your sister's estate, you would like to prepare an optional return for income from rights or things. Which of the following sources of income would you not include on the rights and things return? a) Interest from a savings account at a chartered bank earned prior to death. Uncashed matured bond coupons. c) Harvested farm crops. b) Unpaid dividends declared before d) the day the person died but receivable after her death.
Janet Starr, a CPA in Baltimore, received the following request from a former client, South Shore Swim Club (S.S.S.C.): "Please send me copies of my 2016 tax return, the original set of sales receipts I provided you in 2017, plus copies of all our email correspondence related to the 2017 returns. Thank you." S.S.S.C. has not paid Ms. Starr all of the fees owed to her for her work preparing and filing their 2016 tax returns. According to the AICPA Code of Professional Conduct, Janet Starr must: Select one: send SSSC the 2017 tax return but not the receipts or copies of the emails. send SSSC the sales receipts but not the tax return or the emails. send SSSC all of the requested items. send SSSC the 2017 tax return and the receipts but not the emails.
Lowell Corporation has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash basis because of errors made by an inexperienced bookkeeper. Income statements prepared by the bookkeeper reported $29,000 net income for 2019 and $37,000 net income for 2020. Further examination of the records reveals that the following items were handled improperly. 1. Rent was received from a tenant in December 2019. The amount, $1,000, was recorded as revenue at that time even though the rental pertained to 2020. 2. Salaries and wages payable on December 31 have been consistently omitted from the records of that date and have been entered as expenses when paid in the following year. The amounts of the accruals recorded in this manner were: December 31, 2018 $1,100 December 31, 2019 1,200 December 31, 2020 940 3. Invoices for supplies purchased have been charged to expense…
ared Jones has started a screen printing business. Because he is a private company he has chosen not to use accrual based on accounting. In January of 2017 he decides to go to the bank and ask for a loan to finance the purchase of a large piece of machinery. He is able to show the bank a net income of $75,000 for the year ending December 31, 2016. Based on his income, and debt to asset ratio the bank is unable to give him the loan. Jared goes back to the office and instructs his accountant to re-do the financial statements. This time using accrual basis accounting. The accountant adds an additional $20,000 of revenue and net income for a job that was performed at the end of December, and expected to be paid in January. He also includes $20,000 on the balance sheet for accounts receivable, and $2,500 in accrued expenses. With this new information Jared is able to get his loan. Was it ethical for Jared to include the $20,000 in his net income? Why or why not?
Joy incurs the following expenses in her business. When can she deduct the expenses if she uses the accrual method of accounting? the cash method? a. Joy rents an office building for 750 a month. Because of a cash flow problem, she is unable to pay the rent for November and December 2019. On January 5, 2019, Joy pays the 2,250 rent due for November, December, and January. b. Joy borrows 60,000 on a 1-year note on October 1, 2019. To get the loan, she has to prepay 6,200 in interest. c. Joy owes employees accrued wages totaling 20,000 as of December 31, 2019. The accrued wages are paid in the regular payroll on January 5, 2020. d. Joy purchases 2,400 worth of supplies from a local vendor. The supplies are delivered on January 29, 2019. They are fully used up on December 30, 2019. Because of unusual circumstances, a bill for the supplies arrives from the vendor on January 10, 2020, and is promptly paid. e. While at a trade convention, Joy purchases some pens and paperweights to send out as holiday gifts to her clients. She charges the 700 cost to her credit card in December 2019. She pays the credit card bill in January 2020.
Indicate the principle/s violated: No financial statements were prepared by Michael Go for his business, He explained that he will prepare the statements when he closes the business, which he predicts to take place after 20 years. The owner-manager bought a computer for personal use. The invoice was given to the accountant who recorded it as an asset of the business. Aside from owning a shoe store, Albert operates a canteen. The assets of a canteen are reported in the statement of financial position of the shoe store. Purchased a hammer at a cost of PHP500. This was recorded as an asset and expense to decrease its value by PHP50 per year for 10 years. A food company ordered a machine needed in the assembly line of its production department. Upon order, the machine was immediately listed as one of its assets.
financial account questions
Mr. A started his own business. As it is a very small business with little investment and very less transactions, he does not want to hire any employees to record the transactions happening in the business. As he is not from an Accounting background, he finds it very difficult to understand how to classify the transactions and record. Some transactions are given to you to help him classify transactions category under A) Current Assets B) Current Liabilities C) Long term liabilities D) Long term Assets E) Contingent Liability. You are also required to guide him how you have classified a particular transaction by giving suitable reasons in the books of both the parties. Suppose Mr. A has purchased goods for using it in manufacturing from Mr. B on credit for RO 5000. A’s company borrowed money from Bank Muscat promising to repay it after 2 years. A Promised to deliver the goods to Mr. Z on June 1st Mr. Z paid the cash of RO. 2,500 before the goods were delivered to him.…
Sub, GENERAL ACCOUNT
Helen Hernandez, president of Double H Enterprises, applied for a $175,000 loan from Great Nations Bank. The bank requested financial statements as a basis for granting the loan. Helen instructed her accountant to provide the bank with a balance sheet, but to omit the other financial statements because her business incurred a net loss last year. Helen contends that as the owner of the business, it is her right to withhold certain financial statements from the bank. Do you agree with Helen? Why or why not? What type of information would banks require from a loan applicant and why would the loan officer request this information?
Sandra, a cash-basis taxpayer, operated a pet store on the cash method of accounting. She lent $4,500 to a friend but then forgave the loan. She also wrote off an account receivable of $2,200 that became uncollectible. She had to pay $8,000 on a supplier’s debt that she guaranteed in order to maintain a source of inventory. What is Sandra’s business bad debt expense? (a) $2,200 (b) $4,500 (c) $8,000 (d) $10,200 Choose the correct answer and defend your choice in 2-3 sentences.
Amy is a salesperson for ABC Company. Although ABC never expressly authorized her to collect payments (cash and checks) from the customers, she routinely does so for some of her long standing customers and submits them to ABC, who accepted payment without issue. One day, Amy collects cash from one of her customers and runs off. The customer sues ABC Company. If ABC is liable, it is because Amy has a. apparent authority b. implied authority c. no authority d. express authority