a) Estimated profit and loss account (Profit and loss budget) b) Cash budget c) Estimated balance sheet 31.12.201X
a) Estimated profit and loss account (Profit and loss budget) b) Cash budget c) Estimated balance sheet 31.12.201X
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 2RE: Match the following items with correct accounting treatment (A through C):
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Question
Need help for a,b & c
![Riina Lokka
台」
P Etsi -
O AaBbCcD AaB
S Korvaa
Otsikko 3
Otsikko
A Valitse
Luo ja jaa
Pyydä
Sanele
Luottamuksellisuus
Kirjoitusavustaja
Adoben PDF allekirjoituksia
Käy
Muokkaus
Adobe Acrobat
Puhe
Luottamuksellisuus
Kirjoitusavustaja Käytä tiec
The balance sheet of Satulinna 1.1.201X shows the following:
ASSETS
EQUITY AND LIABILITIES
euro
euro
Building
Machinery, and
equipment
38 000 Share capital
11 000 Retained earnings
12 000
4 500
Rawmaterials
Accounts receivable
(short term)
2 000Loans
32 000
3 500 Qther creditors (short
2 800
term)
1 400 Accounts pavable (shod
term)
Cash at bank and in
4 600
hand
Total
55 900 Total
The following details are given to prepare the budget:
55 900
Turnover is 48 000,-, accounts receivable at the end of the year are 10 % of the turnover.
Purchases 18 000.-, accounts payable at the end of the year are 15 % of the purchases, usage of
rawmaterials 18 800,- (= variable costs).
Salaries 12 000,-, rent 3 600,-, other operating expenses 2 100,-.
Investment in machinery 2 000 - and investment in building 6 000,-, which will be financed by the
share issue of 3 000,- and the loan of 5 000,-
Depreciation of the machinery is 25 % of the undepreciated balance and depreciation of the
building is 4 % of the undepreciated balance.
Taxes are 20 % of the profit before taxes.
Amortization of loans is 4 300.- and interest expenses are 3 200,-.
Distribution of dividends is 1 800,-
Cash at the end of the year should be at least 2 000,-.
If more money is needed, loans are available from the bank.
PREPARE for next year
a) Estimated profit and loss account (Profit and loss budget)
b) Cash budget
c) Estimated balance sheet 31.12.201X
D Keskity
52%
0°C Selkeä](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9db3c2d1-3880-4ed1-944c-9896cce8d7eb%2F1f5d021f-8838-47c2-bd12-015265ce9a77%2Fqi81hw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Riina Lokka
台」
P Etsi -
O AaBbCcD AaB
S Korvaa
Otsikko 3
Otsikko
A Valitse
Luo ja jaa
Pyydä
Sanele
Luottamuksellisuus
Kirjoitusavustaja
Adoben PDF allekirjoituksia
Käy
Muokkaus
Adobe Acrobat
Puhe
Luottamuksellisuus
Kirjoitusavustaja Käytä tiec
The balance sheet of Satulinna 1.1.201X shows the following:
ASSETS
EQUITY AND LIABILITIES
euro
euro
Building
Machinery, and
equipment
38 000 Share capital
11 000 Retained earnings
12 000
4 500
Rawmaterials
Accounts receivable
(short term)
2 000Loans
32 000
3 500 Qther creditors (short
2 800
term)
1 400 Accounts pavable (shod
term)
Cash at bank and in
4 600
hand
Total
55 900 Total
The following details are given to prepare the budget:
55 900
Turnover is 48 000,-, accounts receivable at the end of the year are 10 % of the turnover.
Purchases 18 000.-, accounts payable at the end of the year are 15 % of the purchases, usage of
rawmaterials 18 800,- (= variable costs).
Salaries 12 000,-, rent 3 600,-, other operating expenses 2 100,-.
Investment in machinery 2 000 - and investment in building 6 000,-, which will be financed by the
share issue of 3 000,- and the loan of 5 000,-
Depreciation of the machinery is 25 % of the undepreciated balance and depreciation of the
building is 4 % of the undepreciated balance.
Taxes are 20 % of the profit before taxes.
Amortization of loans is 4 300.- and interest expenses are 3 200,-.
Distribution of dividends is 1 800,-
Cash at the end of the year should be at least 2 000,-.
If more money is needed, loans are available from the bank.
PREPARE for next year
a) Estimated profit and loss account (Profit and loss budget)
b) Cash budget
c) Estimated balance sheet 31.12.201X
D Keskity
52%
0°C Selkeä
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