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7. Interest on 6% loan is not paid in cash in the current year. 8. Salaries worth $140,000 were paid in the current year. Salary worth $20000 for the week ending on 31st March 2017 has not yet been paid. Prepare the Balance Sheet as of March 31st 2017

7. Interest on 6% loan is not paid in cash in the current year. 8. Salaries worth $140,000 were paid in the current year. Salary worth $20000 for the week ending on 31st March 2017 has not yet been paid. Prepare the Balance Sheet as of March 31st 2017

FINANCIAL ACCOUNTING
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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Assets Building Furniture Inventories Accounts Rec. Cash/Bank TOTAL Flow of Inventory, Sales, Receivables, and Expenses Balance Sheet as of March 31st 2016 Amount Liabilities + Owners Equity 6% Loan 1,000,000 100,000 Accounts Payable 200,000 300,000 Common Stock 400,000 APIC 2,000,000 TOTAL Amount 800,000 200,000 600,000 400,000 2,000,000 The following transactions took place during the year ended March 31st 2017: 1. The company purchased inventory worth $800,000. 80% of inventory was purchased on credit and the remaining 20% was purchased for cash. 2. The company sold inventory worth $900,000 for $1,800,000. 20% of the sales were made on credit, the remaining 80% were cash sales. 3. During the year $320,000 were collected from our debtors. 4. We paid of Accounts Payables worth 840,000 5. On January 1 2017 we received $240,000 in advance from a customer for goods and services to be provided equally over the following 12 months. 6. On September 30th 2016, we paid rent of $120,000 for building for the next 24 months. 7. Interest on 6% loan is not paid in cash in the current year. 8. Salaries worth $140,000 were paid in the current year. Salary worth $20000 for the week ending on 31st March 2017 has not yet been paid. Prepare the Balance Sheet as of March 31st 2017
Transcribed Image Text:Assets Building Furniture Inventories Accounts Rec. Cash/Bank TOTAL Flow of Inventory, Sales, Receivables, and Expenses Balance Sheet as of March 31st 2016 Amount Liabilities + Owners Equity 6% Loan 1,000,000 100,000 Accounts Payable 200,000 300,000 Common Stock 400,000 APIC 2,000,000 TOTAL Amount 800,000 200,000 600,000 400,000 2,000,000 The following transactions took place during the year ended March 31st 2017: 1. The company purchased inventory worth $800,000. 80% of inventory was purchased on credit and the remaining 20% was purchased for cash. 2. The company sold inventory worth $900,000 for $1,800,000. 20% of the sales were made on credit, the remaining 80% were cash sales. 3. During the year $320,000 were collected from our debtors. 4. We paid of Accounts Payables worth 840,000 5. On January 1 2017 we received $240,000 in advance from a customer for goods and services to be provided equally over the following 12 months. 6. On September 30th 2016, we paid rent of $120,000 for building for the next 24 months. 7. Interest on 6% loan is not paid in cash in the current year. 8. Salaries worth $140,000 were paid in the current year. Salary worth $20000 for the week ending on 31st March 2017 has not yet been paid. Prepare the Balance Sheet as of March 31st 2017
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