Chapter: Adjusted Financial Statements The following adjustment are to be taken into account:a. Inventory as at 31 December 2020 was valued at RM2,600b. The interest on the loan taken from Afina bank was not recorded in the accounts.c. Prepaid RM300 of the insurance premiumsd. Prepaid RM125 of the telephone and electricity bills.e. Depreciation was provided using the rates as follows:i. Office equipmentii. Motor vehiclesi. Furniture20% p.a on carrying value15% p.a on cost10% p.a on costf. Bad debts of RM110 to be written offg. The provision for doubtful debts was to be adjusted to 2.5% of the remainingaccount receivablesh. Fasuha had drawn RM150 cash from the business to spend on his son's birthday.Required:a) Prepare the Statement Profit or Loss and Other Comprehensive Income for theyear ended 31 December 2020.b) Prepare the Statement of Financial Position as at 31 December 2020 5. The following trial balance was extracted from the books of Fasuha Trading as at 31December 2020.ParticularsDebitCreditRMRMOffice equipmentMotor vehiclesFurnitureAccumulated depreciation as at 1 January 2020:Office equipmentMotor vehiclesFurnitureAccount receivables and account payablesCapital6% loan to RaraPurchases and salesDiscountAdvertisingCash in handProvision for doubtful debtsCommission received6% loan from Afina Bank (taken from 1 May 2020)RentDrawingsMaintenance and petrolStaff's wages12,2509,1503,6002,4501,3731,0603,63229,6086,8602,50019,11031,5602151754,2501,6303007408,0001,2001,9001,2607004,005Insurance1,000Cash at bank|Carriage inwardsCarriage outwardsTelephone and electricityDuties on purchasesReturnsInventory as at 1 January 20205,2702102506109151101123,41579.710 79,710TOTAL

Net Sale=Sale-Return=RM 31,560-RM 110=RM 31,450

5. The following trial balance was extracted from the books of Fasuha Trading as at 31 December 2020. Particulars Credit RM Debit RM 12,250 9,150 3,600 Office equipment Motor vehicles Furniture Accumulated depreciation as at 1 January 2020: Office equipment Motor vehicles Furniture Account receivables and account payables |Capital | 6% loan to Rara Purchases and sales Discount Advertising |Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) Rent Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases 2,450 1,373 1,060 3,632 29,608 6,860 2,500 19,110 31,560 215 4,250 1,630 175 300 740 8,000 700 1,200 1,900 1,260 4,005 1,000 5,270 210 250 610 915 110 Returns 112 Inventory as at 1 January 2020 TOTAL 3,415 79.710 79.710

5. The following trial balance was extracted from the books of Fasuha Trading as at 31 December 2020. Particulars Credit RM Debit RM 12,250 9,150 3,600 Office equipment Motor vehicles Furniture Accumulated depreciation as at 1 January 2020: Office equipment Motor vehicles Furniture Account receivables and account payables |Capital | 6% loan to Rara Purchases and sales Discount Advertising |Cash in hand Provision for doubtful debts Commission received 6% loan from Afina Bank (taken from 1 May 2020) Rent Drawings Maintenance and petrol Staff's wages Insurance Cash at bank Carriage inwards Carriage outwards Telephone and electricity Duties on purchases 2,450 1,373 1,060 3,632 29,608 6,860 2,500 19,110 31,560 215 4,250 1,630 175 300 740 8,000 700 1,200 1,900 1,260 4,005 1,000 5,270 210 250 610 915 110 Returns 112 Inventory as at 1 January 2020 TOTAL 3,415 79.710 79.710

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

VII. Direction: Compute and interpret. The following comparative financial statements are provided by Avatar Industries. You were asked to compute the different financial ratios and provide your interpretations with regards to profitability, efficiency, liquidity and solvency of the company. Use the Answer Sheet template below to input your answer and solution. AVATAR INDUSTRIES AVATAR INDUSTRIES Comparative Statement of Financial Position For the years 2019 and 2018 Comparative Income Statement For the years 2019 and 2018 2019 2018 2019 2018 ASSETS Current Assets: Sales P200,000 P210,000 Cash & Cash Equivalent P65,000 P70,000 Sales Returns and Allowances 40,000 25,000 Accounts Receivable 40,000 35,000 Net Sales 160,000 185,000 Marketable Secuities 40,000 35,000 Cost of Goods Sold 100,000 115,625 Inventory 100,000 80,000 Gross Profit 60,000 69,375 Total Current Assets 220,000 200,000 160,000 P445,000 P380,000 245,000 Operating Expenses: Fixed Assets Selling Expenses 22,000 25,000 Total…
Unrealized gains or losses on short-term investments are reported using: Question 10 options: a liability account an asset account an expense account a revenue account
What are the classifications of investments in the statement of financial position?
which of the follwoing are financial claims? bonds pension obligations equity both bonds and equity
Reporting Issuance and Retirement of Long-Term Debt On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds: ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Debit Credit Jan. 1 Balance Retire bonds 112,000 June 30 Issue bonds ACCOUNT Discount on Bonds Payable Date Item Balance Retire bonds Issue bonds Amortize discount Jan. 1 2 June 30 Dec. 31 Item Debit 22,500 336,000 Credit 8,960 1,940 Debit Credit 560,000 448,000 784,000 ACCOUNT NO. Balance Debit 25,200 16,240 38,740 36,800 Credit
Asap
The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total assets.c. total assets by long-term liabilities.d. long-term liabilities by total assets.
The alternative treatment in reporting Subscription Receivable is a. deduction to Current Assets b. addition to Current Assets c. deduction to Current Liabilities d. addition to Current Liabilities
What'sthe journal entry to accrue for amortization expenses?
The following are classified as current liabilities on the balance sheet: Inventory, Short-term Debt, and Deferred Revenue. Short-term Debt, Accounts Payable, and Deferred Revenue. Sales Taxes Payable, Current Operating Lease Liabilities, and Common Stock. Short-term Debt, Income Taxes Payable, and Land.