2. The following Trial Balance obtained from Mr. Sofi business in baby clothes on 31st December 2019. Furniture Motor vehicle Debtors Creditors Cash Bank Returns Rent TRIAL BALANCE AS AT 31st DECEMBER 2019 Electricity & water Sales & Purchases Provision for depreciation Furniture Motor vehicle Opening inventory Salary Capital Provision for doubtful debts Discounts Required: RM 9,000 40,000 7,500 12,000 600 550 420 3,500 4,800 1,000 450 79,820 RM 10,000 2,500 800 9,500 1,800 3,500 50,870 350 500 79,820 Additional information: a. Depreciation rate for motor vehicles is 10% on cost and furniture is 5% on cost. b. Provision for doubtful debts is 4% c. Rent paid is RM100 per month d. Accrued electricity & water is RM150 e. Closing stock at cost price is RM6,000 and the market price RM4,800 i. Statement of Comprehensive Income for the year ended 21st December 2019. ii. Statement of Financial Position as at 21st December 2019.

2. The following Trial Balance obtained from Mr. Sofi business in baby clothes on 31st December 2019. Furniture Motor vehicle Debtors Creditors Cash Bank Returns Rent TRIAL BALANCE AS AT 31st DECEMBER 2019 Electricity & water Sales & Purchases Provision for depreciation Furniture Motor vehicle Opening inventory Salary Capital Provision for doubtful debts Discounts Required: RM 9,000 40,000 7,500 12,000 600 550 420 3,500 4,800 1,000 450 79,820 RM 10,000 2,500 800 9,500 1,800 3,500 50,870 350 500 79,820 Additional information: a. Depreciation rate for motor vehicles is 10% on cost and furniture is 5% on cost. b. Provision for doubtful debts is 4% c. Rent paid is RM100 per month d. Accrued electricity & water is RM150 e. Closing stock at cost price is RM6,000 and the market price RM4,800 i. Statement of Comprehensive Income for the year ended 21st December 2019. ii. Statement of Financial Position as at 21st December 2019.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 17E: Company is considering purchasing EKC Company. EKCs balance sheet at December 31, 2019, is as...

See similar textbooks

Similar questions

17) Magnum mart purchased goods on 4th January, 2019 for RO 86,000 on credit under the payment terms 2/10, n/30 and paid cash on 12th January 2019. How would you record this in the books of buyer under Perpetual inventory system? a. Account payable RO 86,000 Dr / Cash RO 86,000 Cr b. Cash RO 84,280 Dr / Merchandise inventory RO 1,720 Dr /Account payable RO 86,000 Cr c. Cash RO 86,000 Dr / Account payable RO 86,000 Cr d. Account payable RO 86,000 Dr / Merchandise inventory RO 1,720 Cr / Cash RO 84,280 Cr Clear my choice
a) Prepare the adjusted trial balance. For each adjustment, describe your workings and justify them. b) Use the adjusted trial balance to prepare the income statement for 2020. c) Use the adjusted trial balance to prepare the balance sheet for 2020.
Data for item nos. 16 and 17 The following accounts and their balances in an unadjusted trial balance of Record of Youth Company as of December 31, 2020: Cash and cash equivalents- P400,000; Trade and other receivable P2,000,000; Subscription receivable- P375,000; Inventory- P500,000; Trade and other payables- P670,000; Income tax payable- P196,500. Additional information are as follows: • Trade and other receivables include long term advances to company officers amounting to P430,000. • The subscription receivable has the following call dates: June 30, 2021, P200,000; December 31, 2021, P100,000; and June 30, 2022, P75,000. • Inventory of P500,000 was determined by physical count. At December 31, 2020, goods costing P125,000 are in transit from a supplier. Terms of purchase of said goods is FOB shipping point. The goods and the related invoice have not been received as of year-end. • Trade and other payables include dividends payable amounting to P170,000, of which P70,000 is payable…
Make accounting entries for following perpetual inventory transaction Nov8,2019 received a debit memo from kcg inc. For an error that overstated the total invoice by $65
Prepare the necessary joumal entries for the following fiscal year 2022 transactions made by Airflowing Corp. Additional Information: 1 Ai rflowing Corp. year-end is 12/31. 2 Assume straight-line amortization of discounts. 3 Ai rflowing Corp. records all purchases and payables at gross. Description Date February 2, 2022 Aiflowing Corp. purchased goods from Vents Inc for $ 250,00 ( 3/ 10, n 30 terms were February 26, 2022 Airfbwing Corp. paid Vents inc. for the 2/2/22 purchase. June 1, 2022 Arfbwing Corp. purchased a truck for $ 85,000 from Ford Mator Company Fleet Sales Division. The sales agreement call for Airfbwing Corp. to pay 10,000 on purchase date and to sign a 1-year, 10% note forthe remaning balance of the purchase price. July 1, 2022 Arfbwing Corp. borrowed from St. Paul Nat ibnalBank $ 3500,0 by signing a $ 3,700,000 zero-interest be aring note due one year from July 1 Airflowing Corp.s CFO has concerns re bted to cash the frst quarter of 2023.
Sales Inventory (1 October 2019) Purchases Operating expenses Loan from: Nelly Olive Land Building Plant and machinery (cost) Accumulated depreciation (30 September 2020) Accounts receivable and accounts payable Bank overdraft Capital accounts: Mercy Nelly Olive Current accounts: Mercy Nelly Olive Drawings: Mercy Nelly Olive $ 9,000 30,000 19,200 3,000 15,000 21,000 12,000 600 $ 60,000 3,000 6,000 12,000 9,900 3,600 7,500 6,000 3,000 900 600 900 1,200 600 112,800 112,800
Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method. Required: Prepare the depreciation and closing transfer entries in the general journal of Hybrid Dealers on 31 March 2019 and 31 March 2020. Please see attached for answer format
Please help me
Assume that Zandile's Boutique registered as a VAT vendor effective 1 March 2019. Zandile's Boutique had a VAT input total amount of R24 760 and a VAT output total amount of R37 860 at 31 March 2019. Which one of the following represents the balance of the VAT control account at 31 March 2019? A) R13 100 debit. B) R13 100 credit. C) R62 620 debit. D) R62 620 credit.
Company is considering purchasing EKC Company. EKCs balance sheet at December 31, 2019, is as follows: At December 31, 2019, Elm discovered the following about EKC: a. No allowance for uncollectible accounts has been established. An allowance of 5,000 is considered appropriate. b. The LIFO inventory method has been used. The FIFO inventory method would be used if EKC were purchased by Elm. The FIFO inventors-valuation of the December 31, 2019, ending inventors-would be 180,000. c. The fair value of the property, plant, and equipment (net) is 730,000. d. The company has an unrecorded patent that is worth 120,000. e. The book values of the current liabilities and bonds payable are the same as their market values. Required: 1. Compute the value of the goodwill if Elm pays 1,350,000 for EKC. 2. Next Level Why would the book value of a companys identifiable net assets differ from its market value?
prepare journal entries for the ransaction listed above and adjusting entries(including for cost of goods sold using the perpetual system)
Bought office supplies of P21,400 in cash on May 29, 2019. At the end of the fiscal reporting period on September 30, 2019, the physical inventory indicated the stock on hand amounting to P6,800. Under Expense Method, which entry will not be recorded: Select the correct response: Cr. Supplies expense P6,800 Dr. Office supplies P 6,800 Cr. Supplies expense P14,600 Dr. Supplies expense P21,400