5 Franco is in business as a sole trader. The following balances were extracted from his books on 31 January 2014. $ Land and buildings (cost) Fixtures and fittings (cost) Computer equipment (cost) 8% Bank loan (repayable 30 April 2020) Bank 150 000 30 000 70 000 100 000 17 430 Dr Trade receivables 45 000 Trade payables 37 650 Revenue 362 500 Purchases 172 400 7 200 8 800 Returns inwards Returns outwards Inventory at 1 February 2013 Distribution expenses 17 970 16 300 5 900 7 850 Insurance Light and heat Wages and salaries Marketing expenses General expenses Commission received 69 500 31 000 9 200 11 400 Drawings Capital 20 000 149 400 Additional information at 31 January 2014 1 Inventory was valued at $15 600. 2 Wages and salaries includes $15 000 drawings by Franco. 3 Marketing expenses, $6750, were prepaid. 4 No interest had been paid on the bank loan. 5 Computer equipment costing $8000 was purchased by cheque on 25 January 2014. No entries had been made in the books. Required: a. Income Statement b. Statement of Financial Position

5 Franco is in business as a sole trader. The following balances were extracted from his books on 31 January 2014. $ Land and buildings (cost) Fixtures and fittings (cost) Computer equipment (cost) 8% Bank loan (repayable 30 April 2020) Bank 150 000 30 000 70 000 100 000 17 430 Dr Trade receivables 45 000 Trade payables 37 650 Revenue 362 500 Purchases 172 400 7 200 8 800 Returns inwards Returns outwards Inventory at 1 February 2013 Distribution expenses 17 970 16 300 5 900 7 850 Insurance Light and heat Wages and salaries Marketing expenses General expenses Commission received 69 500 31 000 9 200 11 400 Drawings Capital 20 000 149 400 Additional information at 31 January 2014 1 Inventory was valued at $15 600. 2 Wages and salaries includes $15 000 drawings by Franco. 3 Marketing expenses, $6750, were prepaid. 4 No interest had been paid on the bank loan. 5 Computer equipment costing $8000 was purchased by cheque on 25 January 2014. No entries had been made in the books. Required: a. Income Statement b. Statement of Financial Position

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following balances remained in Bop’s books after the preparation of the income statement for the year ended 30th April 2016. The profit for the year was $8650. $ Machinery 100 000 Trade receivables 9 420 Motor vehicle 12 000 Cash 50 Equipment 31 000 Inventory (1.5.15) 11,000 Inventory (30.4.16) 12 650 Capital 120 000 Bank overdraft 13 270 Drawings 7 100 Trade payables 10 300 Bank Loan 20 000 Prepare a statement of financial position at 30th April 2016.
On 1 September 2022, inventory had a balance of R6 000 in the general ledger of BB Enterprises. The entity uses the perpetual inventory system and the mark-up on cost is 50%. Below are the transactions for the month of September: 5 September: Bought goods on credit for R4 000 and paid R300 cash for delivery fees. 11 September: Sold inventory with a selling price of R1 200. 19 September: The owner took inventory with a cost price of R200 for his own use. 24 September: Goods with a selling price of R900 was returned by a customer and BB Enterprises issued a credit note. 29 September: Inventory with a cost price of R300 was damaged and cannot be sold. You are required to: a) List (in date order) the entries that will appear on the DEBIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be credited) and the amount. b) List (in date order) the entries that will appear on the CREDIT side of the INVENTORY general ledger account.…
At December 31, 2017, Laramie Imports Inc. reported this information on its balance sheet. Accounts receivable $647,000 Less: Allowance for doubtful accounts 41,000 During 2018, the company had the following summary transactions related to receivables and sales. Laramie uses the perpetual inventory system. 1. Sales on account amounted to $2,369,000. The cost of the inventory sold was $2,155,790. 2. Sales returns and allowances with a total sales price of $38,000 and a cost of $34,580 were restored to inventory. 3. Collections of accounts receivable were $2,079,000. 4. Write-offs of accounts receivable deemed uncollectible, $46,200. 5. Recovery of bad debts previously written off as uncollectible, $13,600. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. No. Account Titles and Explanation Debit Credit 1.…
The accounting records of JasonJohnson Company provided the data below for years ending 30 June 2022 and 30 June 2021: 2022 2021 $ $ Sales (all on credit) for the year 950,000 Cost of goods sold for the year 380,000 Discount provided to customers for early payment 3,500 Bad debts expense for the year 2,500 Depreciation expense 55,000 Net profit 509,000 30 June 2022 30 June 2021 $ $ Accounts receivable 160,000 140,000 Less: Allowance for doubtful debts 4,500 4,200 155,500 135,800 Inventory 88,360 62,200 Accounts payable 55,500 47,700 Required: a. Based on the information given, prepare the section of cash flows statement for “net cash flows from operating activities” for the year ended 30 June 2022 for JasonJohnson company. Show your calculations for each item included in the section of the statement. b. Prepare a…
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The following items were among those that appeared on Rubi Co.’s books at the end of year 1: Merchandise inventory P600,000; Loans to employees 20,000. What amount should Rubi classify as monetary assets in preparing constant peso financial statements? P0 P 20,000 P600,000 P620,000
Level Up reported the following information for 2016 and 2017: Accounts payable, 31 December 2016 $50 000 Accounts payable, 31 December 2017 $80 000 Inventory, 31 December 2016 $60 000 Inventory, 31 December 2017 $150 000 Cost of goods sold, 2017 $850 000 Assume that all merchandise purchases are on account. How much cash was paid to suppliers for inventory purchases during 2017? O $1 060 000 O $910 000 O $970 000 O $790 000
The following items were among those that appeared on Rubi Co.’s books at the end of year 1: Merchandise inventory P600,000; Loans to employees 20,000. What amount should Rubi classify as monetary assets in preparing constant peso financial statements? P0 P 20,000 P600,000 P620,000
Govender Wholesalers entered into the following transactions during February 2016 (IGNORE VAT).They make use of the perpetual inventory system.DateDetailsThe owner made a capital contribution of R640 000 to his business. This was done bymeans of an electronic transfer from his personal account into the business' bank account.Purchase trading inventory on credit for R153 500.1215Sell trading inventory for R32 160 cash. Goods were sold at a mark-up of 20% on cost.Purchase a computer for R15 000 on credit for use in the business.18Services rendered by Govender Wholesalers on credit for R36 000.2425The business paid back R50 000 of the inventory purchased on credit on 8 February.The debtor made full payment for the services rendered on credit on the 18t of February.27The owner takes inventory for his personal use with a selling price of R3 000. (Mark-up 50%on cost price.)28Pay staff salaries of R27 500,Required:Show the effect of each individual transaction on the accounting equation…
Accounting At 1 October 2015 a business had total outstanding debts of K8,600,000. During the year to 30th September 2016 the following transaction took place. Credit sales amounted to K44,000,000. Payments from various customers (accounts receivable) amounted to K49,000,000. Two debts, for K180,000 and K420,000, were declared irrecoverable and the customers are no longer purchasing goods from the company. These are to be written off. Required: Prepare the trade accounts receivable and the irrecoverable debts account for the year
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