5. Mr. Taico has started its business Taico Plus on 1 June, 2020. Following are the unadjusted data of the business. Taico Plus Trial Balance 31“ August,2020 Account Titles Cash Debit S 20,000 26,000 35,000 48,000 100,000 160,000 40,000 Credit S Accounts Receivable Supplies Prepaid insurance Furniture & Fixture Equipment Cottage Accu. Dep-Cottage Accounts Payable Utilities payable Mortgage Payable Capital 2000 90,000 37,000 50,000 223,000 Drawing Service revenue Unearned service revenue 20,000 45,000 92000 Rent expense Salaries expense Utilities Expense Supplies expense Depreciation expense 22,000 45,000 12,000 9000 2000 539000 539,000 The following additional information should be considered for adjusting entries: a) Furniture, Equipment and Cottage all three have Useful life of 10 years. b) Supplies of $5,000 are still on hand at 31 December. c) Unearned revenue of $18000 has been earned in August. d) Insurance policy is for 3 years. e) Salary expense incurred but not paid in cash $10,000. (f) Mortgage was taken out on 1“ May 2020. Interest rate was 10%. Requirements: 4. Classified Balanče Sheet as of August 31, 2020. 5 5. Pass Closing Entry 4

5. Mr. Taico has started its business Taico Plus on 1 June, 2020. Following are the unadjusted data of the business. Taico Plus Trial Balance 31“ August,2020 Account Titles Cash Debit S 20,000 26,000 35,000 48,000 100,000 160,000 40,000 Credit S Accounts Receivable Supplies Prepaid insurance Furniture & Fixture Equipment Cottage Accu. Dep-Cottage Accounts Payable Utilities payable Mortgage Payable Capital 2000 90,000 37,000 50,000 223,000 Drawing Service revenue Unearned service revenue 20,000 45,000 92000 Rent expense Salaries expense Utilities Expense Supplies expense Depreciation expense 22,000 45,000 12,000 9000 2000 539000 539,000 The following additional information should be considered for adjusting entries: a) Furniture, Equipment and Cottage all three have Useful life of 10 years. b) Supplies of $5,000 are still on hand at 31 December. c) Unearned revenue of $18000 has been earned in August. d) Insurance policy is for 3 years. e) Salary expense incurred but not paid in cash $10,000. (f) Mortgage was taken out on 1“ May 2020. Interest rate was 10%. Requirements: 4. Classified Balanče Sheet as of August 31, 2020. 5 5. Pass Closing Entry 4

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 3MCQ

See similar textbooks

Similar questions

On August 1, 2020, the business accounts of Peter and Senen appear below:Assets Peter SenenCash P11,000 P22,354Accounts receivable 84,536 217,890Inventories 100,035 240,102Land 603,000 428,267Buildings 200,345 384,789Other Assets 22,000 23,600Total P1,020,916 P1,317,002Liabilities and CapitalAccounts payable P178,940 P243,650Notes payable 200,000 345,000Peter, Capital 641,976Senen, Capital 728,352Total P1,020,916 P1,317,002Peter and Senen agreed to form a partnership contributing their respective assets and liabilitiessubject to the following adjustments:Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respectivebooks.Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective booksOther Assets of P2,200 and P3,600 in Peter and Senen’s books are written off.After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interestin the firm. They also agreed to divide profits and losses in the ratio of 4:4:2…
Below are the financial statements for the financial year 2020 and 2021. Statement of Financial Position as at January 31, 2019 and 2020 2021 2020 Current Assets Cash and cash balane:es 33,500 2,550 Account rocoivable 110.100 108,150 Inventories 17.000 7,140 Olher Teceivubles and prepaid experises 83,700 176.320 228.500 167,240 461,400 Fixod doposits with licenscd banks Total current assets 472,800 Properly, plant and cxquiprnenl 1,860,000 619,500 Total Assets 2,332,800 1,080,900 Current Liabilities Account Payables 60,400 27.410 Other payables and accriies expenses 65.600 56,390 Notes payables 27.800 46,800 Total current liabilities 153,800 130,600 Long term Liabilities Long term barrowings 490.500 144,700 Conveitible bonds 342.980 Hire purchase payables 106.920 76,600 Total long term liabilities 940,400 221,300 Shareholders' equity: Issued capital 253.500 201,000 Sharo promium 541.800 425.000 Retaincd carnings 443.300 103,000 Total liabilities and owners' equity 2,332,800 1,080,900
The beginning and ending balances in cach of the balance sheet accounts of the Mexieо Соmpany aгe яs follows: Dec. 31, 2019 P260,000 180,000 400,000 50,000 P890,000 P1,200,000 1,000,000 Dec. 31, 2020 (ash P100,000 Accounts recivable 360,000 Inventory Prepaid insurance Total current assets 460,000 30,000 P950,000 P1.500,000 Land Plant & equipment Accumulated depreciation 1,400.000 (400,000) P1,800,000 (500,000) P2,400,000 Total non-current assets Total assets P2,690,000 Р3,350.000 P 300,000 200,000 P 260.060 132.000 Accounts payable Accrued operating expenses Interest payable Income taxes payabie Tota! current liabilities Bonds payable 30,000 20,000 122,000 P 642,000 600,000 800,000 648,000 150.000 P 572.600 700,000 1,100,000 Common stock Retained earnings 978,005 Total liabilities & equity P2,690,000 P3,350,000 ===== =====H= The forccast income stateinent for the Mexico Company for 2020 is presented helow: Sales P2,500,000 LJ00,000 PI,100,000 Cost of sales Gross profit Operating…
CASE STUDY INFORMATION: The following information has been extracted from the accounting records of Lubners Limited on 31 December 2020. 2020 2019 Dr Cr Dr Cr Ordinary share capital 1728 000 1728 000 Non-current assets 3 462 964 2910206 inventories 665 856 584 640 Accounts payable Accounts receivable cash Retained earnings ( 1 Jan) Long term Loan 311 328 290 304 832 608 800 064 338 688 362 304 244 276 1 090 944 809 568 932 256 Other Current liabilities 1 057 824 Total Sales (80% credit sales) Cost of sales (80% credit purchases) 4 816 512 4 535 424 2 530 656 2 340 288 Interest income 7776 9 504 taxation 207 009 192 159 Selling and admin expenses 1 141 344 1 069 056 Interest expenses Other expenses 149 161 174 551 263 808 274 752 REQUIRED: QUESTION 1 (25) Compile the Statement of Comprehensive Income for the year ended 31 December 2020. (with 2019 comparative figures) QUESTION 2 (25) Compile the Statement of Financial Position as at 31 December 2020. (with 2019 comparative figures)
Following are the current asset and current liability sections of the balance sheets for Freedom Inc. at January 31, 2020 and 2019 (in millions): Current Assets Cash Accounts receivable Inventories Total current assets Current Liabilities Note payable Accounts payable Other accrued liabilities Total current liabilities January 31, 2020 Working capital Current ratio 6 EL EL $ 21 $ 15 January 31, 2019 01/31/2020 01/31/2019 9 18 $ 25 Required: a. Calculate the working capital and current ratio at each balance sheet date. (Enter "Working capital" in millions of dollars (1.e.. 10,000,000 should be entered as 10). Round your "Current ratio" to 2 decimal places.) $12 b. Evaluate the firm's liquidity at each balance sheet date. Based on the working capital and current ratio measures, the firm has become more liquid over the 2-year period. O Based on the working capital and current ratio measures, the firm has become less liquid over the 2-year period. c. Assume that the firm operated at a loss…
On hne 11, 2019. Majoie Co aquiral all of the oomn sck of Goblem Crmpey which became die of Mast C Culdes ed e w e of finncial pobon at the te of the puition Golden Compy Statement of Finecial Poion Assets Plant asses (rt) aventory Roceivables Cash Total aets 31,250,000 370,000 750,000 350.000 $2.720.000 Banuty and Laabihtes Share captal edunary Retaned earmum Accounts payable $1,015.000 1,000,000 675.000 Toal equity and liahulities $2.720.000 An apprainal ndicated that the faur value of dhe inventory was $175,000 and the fair value of the plant assets wan $1,450.000 The agreed purchase prce wa 53,000 000, sod tn amount was paid in cash to the previous owniers of Galden Company Required: a. Prepare the entry to record the purchase of Golden Company o Assume Ihat the carrying amount of Golden Company division's net assets, including goodwill is $2,800,000. The recoverable amount ot the division is estimated to bo $ 3,200,000. Propare the journal entry to record the impairment loss (If…
Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for 8,500. Prepare the journal entry for McKinncy to record the collection of the account previously written off.
Please explain the comparison part too. Thanks
Perform February 2023, journal entries and balance sheet.
transcribed image text: Luna's savings account had the following balances. Date 04/01/2019 04/17/2019 05/28/2019 06/22/2019 Balance 726,000 782,000 800,000 How much is Luna's ADB for the 2nd quarter of 2019? 535,000 O P752,670.33 O P752,380.43 O P760,648.35 O P761,033.33
The following information is provided to you by Ahmed LLC for the financial year ending 31st December 2020. As on 1st January 2020 As on 31st December 2020 Monetary Assets OMR 60,000 OMR 60,000 Monetary Liabilities OMR 120,000 OMR 120,000 Retail Price Index 250 350 Find out the gain/loss on holding monetary Assets a. OMR 24,000 b. OMR 60,000 C. OMR 50,000 d. OMR -24,000
The balance sheet account of Tata limited had the following balances on April 1, 2020, the beginning of a fiscal year Tata limited Balance SheetAccounts April 1,2020 Cash Accountsreceivatile Machandiseinventary Propaidrent Stareequipmet Acamulateddepreciation stare equipment Accountspayable Paid-in capital Retainedeamings Rs 1300 12600 38900 2000 10500 Rs2875 22500 15,000 24925