A sole trader had opening capital of £25,000 and closing capital of £7,500. During the year the owner introduced further capital of £8,000 and withdrew £12,000 for her own use. The profit or loss during the year was? A. £13,500 loss B. £21,500 loss C. £33,000 profit D. £37,500 profit

A sole trader had opening capital of £25,000 and closing capital of £7,500. During the year the owner introduced further capital of £8,000 and withdrew £12,000 for her own use. The profit or loss during the year was? A. £13,500 loss B. £21,500 loss C. £33,000 profit D. £37,500 profit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The net income for the year ended on January 31, 2020 for SC Corporation was $139,000. Additional…

A: The statement of cash flows records all the sources and uses of cash in the business during a…

Q: Sadler plc made an operating profit of £175,500 after charging depreciation of £21,200. During that…

Q: Accounts Payable had a normal beginning balance of $500. During the period, the company made…

A: The accounts payable are recorded as a current liability. The ending balance is computed by…

Q: Given the following situation, Please classify into Current assets, Non-current assets, current…

A: Assets: Assets are the resources that are used in the business in order to generate revenue for the…

Q: Brown Ltd made an operating profit of £185,500 after charging depreciation of £31,200. During that…

A: The cash flow from operating activities can be calculated using direct or indirect method. Using…

Q: The adjusted trial balance of Liberty Company included the following accounts for the current year:…

A: Net income is a significant metric for lenders, shareholders, and stakeholders since it demonstrates…

Q: During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was…

A: A cash flow statement is a financial document that shows the inflow and outflow of cash for a…

Q: Berry Corporation reports the following information. Cash Net operating working capital Net…

A: The question is based on the concept of Cost Accounting.

Q: Please, prepare one step income statement. What is net income? Sales revenues 185 000 Cost of…

A: Answer:- Income statement meaning:- A company's sales, costs and profitability over time are…

Q: The following accounts and corresponding balances were drawn from Delsey Company's Year 2 and Year 1…

A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…

Q: During the current year, XYZ Corporation purchased land for $5,000 and sold a piece of factory…

A: Workings: Net cash flows = cash Inflow - cash outflow.

Q: Norbury Corporation's net income last year was $19,000. The company did not sell or retire any…

A: The sum of cash a firm earns through continuing, usual business operations like producing and…

Q: At the beginning of the year, Bell Corporation's balance sheet showed total assets of $14,000,000.…

A: Step 1: Introduction to The Asset Turnover:Asset turnover assesses the efficiency of the company in…

Q: what is the amount of rogers 2021 NOL?

A: Net Operating Loss or NOL occurs when the tax deductions exceed the net taxable income in a…

Q: During 2014, Whitefish Industries reported net income of $49,000, paid a cash dividend of $32,000.…

A: Cash flow from operating activity includes cash inflow and outflow related to business operations.…

Q: The Weymire Corporation provides you with the following information for the year ended 12/3120:…

A: Cash Flow A/c

Q: 3. During September an organisation had sales of £148,000, which showed a gross profit of £40,000.…

A: The term stock refers to tangible property held for sales in the ordinary course of business or for…

Q: Transaction Asset Liability Capital (d) The owner puts a further $5,000 cash into the business…

A: Basic accounting equation is Total liabilities + owners equity = Total Assets

Q: Labi Company reported a net loss of $13,000 for the year ended December 31, 2021. During the year,…

A: Operating activities means the procedures occurred in the daily running of the business.

Q: A company presents the following. Profit before tax 100. Depreciations 40. Ingoing balance for…

A: Capital expenses are the amount of increase in the fixed assets that are being made by the company.

Q: Prepare the statement of cash flows for Jenga Ltd for the year ended 31 December 2021 2. Assess…

A: Cash flow statement : A cash flow statement is a financial statement that provides information about…

Q: Consider the following financial information and answer the questions that follow: Sales : $250,000…

A: Operating cash flows is one of the section of cash flows statement. It shows all cash inflows and…

Q: Q.2. You are presented with the following information relating to Betty's Inc for the year to 31…

A: The financial information for the year ended 31st March 2018 is given. Required Prepare Statement…

Q: 1. During the year, Mark Company sold equipment with an original cost of $100,000 and accumulated…

A: Sale of Equipment - Sale of an equipment is a transaction that requires outflow of equipment and…

Q: Consider the following financial information and answer the questions that follow:Sales :…

A: Cash flow statement means the statement which shows the cash inflow and outflow during the specified…

Q: Alpha limited has the following events for the current year . Revenues $10,000 Cost of goods sold…

A: Net profit means the difference of total revenues and total expenses of the business. It means how…

Q: The coke company sales around in the year of 2019 OMR 300,000. But unfortunately damaged broken coke…

A: This numerical has covered the concept of Net Profit Ratio.

Q: Give the Correct answer of what is the right option

A: To find the total asset turnover for Bell Corporation, we need to use the formula:Asset…

Q: Q R and S carry on business sharing the profits in the ratio of 23: 4 respectively. Capitals as on…

A: Average profits of last years means on an average how much profit is getting earned in every year.…

Q: Provide the Correct answer.. I need this answer with Correct option

A: Step 1:The assets at the beginning of the year = $14,000,000The assets at the end of the year=…

Q: revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her bu…

A: INTRODUCTION : Adjustable taxable income is based on taxable income. ATI is calculated as the…

Q: RST Company reported the following 2021 information: Sales $600,000 CGS 320,000 Unearned revenue…

A: Answer :- Correct option is "a" that is $117,600. Explanation:- Computation of income from…

Q: From the Following Information: Particulars Amount (Rs) Sales 97,000.00 Depreciation…

A: The income statement is prepared to find the net income or loss incurred during the period.

Q: The following information is related to Vaughn Company for 2020. Retained earnings balance, January…

A: Multiple-step income statement: It is the more detailed statement for calculating the net income of…

Q: |1. Sold plant assets costing $25,000, with accumulated depreciation of $12,000. Income Statement:…

A: Retained earnings is the amount of earnings accumulated over the period of time. Net Income…

Q: A company reports the following: Net income $604,000 $34,000 50,000 $158.46 Preferred dividends…

A: Earnings per share is the amount per share earned by the common stockholders of the entity after…

Q: What is the right answer

A: To determine the total asset turnover for Bell Corporation, we can use the following formula:Total…

Q: Consider the following financial information and answer the questions that follow:Sales :…

A: Operating cash flows is the cash flows generated from normal operations-selling and producing the…

Q: Correct answer

A: The answer is B. EACH $1.00 OF ASSETS IN THE FIRM GENERATES $1.49 OF SALES REVENUE.In other words,…

Q: Determine the effects of the following transactions on Current assets, Current liabilities, and…

A: In order to measure the liquidity and short-term financial health the entities are required to…

Q: A. Sold the building for $120,000 and paid the loan. B. Collected $10,000 from the accounts…

A: Realization and liquidation is a statement used in settling or winding up a business to show the…

Q: The Rogers Corporation has a gross profit of $776,000 and $332,000 in depreciation expense. The…

A: Rogers CorporationEvans CorporationGross Profit$776,000$776,000Less: Depreciation…

Q: Q6. Presented below is information related to Al Buraimi at December 31, 2010, the end of its first…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Panache Interiors purchased $2,790 in net new fixed assets and had depreciation expenses of $1,150.…

A: Depreciation is the decrement in the value of tangible assets by the wear and tear during the…

Q: Penketh Ltd has operating profit for the year ended 30 June 2021 of £20,900, after charging…

A: The cash flow statement is part of the financial statements of the company. It is prepared at the…

Q: AV Tech Depot has net revenue of $512,000 and costs of $407,900. The depreciation expense is…

A: A company makes three important financial statements. They are income statement, balance sheet and…

Q: ssom Limited reported the following selected information for the year ended March 31, 2021:…

A: The income statement explains the financial performance of the company for a particular period of…

Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

A sole trader had opening capital of £25,000 and closing capital of £7,500.
During the year the owner introduced further capital of £8,000 and withdrew
£12,000 for her own use. The profit or loss during the year was?
A. £13,500 loss
B. £21,500 loss
C. £33,000 profit
D. £37,500 profit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

ACE Limited has the following results for the 15 months to 31 December 2021: £ Adjusted trading profit, before deduction of capital allowances 1,500,000 Capital allowances claimed: Year to 30 September 2021 312,650 3 months to 31 Dec 2021 40,210 Capital gains/loss Disposal 12 May 2021 (Gain) 15,586 Disposal 6 October 2021 (loss) (12,692) Building society interest: Received 31 December 2020 3,500 Received 31 December 2021 4,000 UK dividend received on 25 November 2021 10,000 Accrued building society interest was £2,000 on 30 September 2020, £4,000 on 30 September 2021 and £2,000 on 31 December 2021. Required: Compute the company’s total corporation tax liability for the 15-month period.
Net income
2. The Dockside Inn has net income for the most recent year of $8,450. The tax rate was 35 percent. The firm paid $2,100 in total interest expense and deducted $1,900 in depreciation expense. What was the cash coverage ratio for the year?
If Income Summary has a P10,000 debit balance before it is closed to the Capital account, you know that Choices: The company had a profit of P10,000 Expenses exceeded revenue by P10,000 Owner made withdrawals of P10,000 The company has a net loss of P10,000
Chelsea Ltd and Liverpool Ltd both began their operations on 1 January 2022. Summary financial information for both companies at the end of 2022 is presented below. Statement of Profit or loss for the year ended 31 December 2022 Chelsea Ltd Revenues Less: Cost of sales Gross Profit Other expenses Depreciation expense Profit Cash at bank Receivables Inventories Property plant and equipment Current liabilities Non-current liabilities Equity Required a. iii. iv. $1,000,000 552,000 448,000 132,000 40,000 $276,000 v. vi. vii. Statement of Financial Position as at 31 December 2022 Liverpool Ltd $1,000,000 600,000 400,000 132,000 80,000 $188,000 Chelsea Ltd Calculate and interpret the following ratios for each company L return on assets il. return on ordinary equity profit margin current ratio $80,000 200,000 208,000 220,000 120,000 180,000 408,000 receivables turnover inventory turnover debt ratio. Liverpool Ltd $80,000 200,000 160.000 180,000 120,000 180,000 320,000 b. How could management…
The following is information for Charles Company for the current year Cost of Goods Sold Operating Expenses Other Income and (Expenses) Gain on Sale of Equipment Loss on Disposal of Equipment Descontinued Operations Gain Income Tax Expense What is the company's net income for the year? $214,000 151.000 19,000 7.000 (6,000) 2,000 40%
Please andwer in good accounting form
ang Services has annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. The firm paid $700 in dividends, $280 in interest, and has a total tax rate of 21 percent. The firm will add $2,810 to retained earnings. What is the depreciation expense? Multiple Choice a. $2,300 b. $3,709 c. $2,640 d. $780 e. $3,577
14. How much is the correct balance of the Accumulated retained earnings unappropriated account?
A company had a profit of P230,000. Depreciation expense is P26,000. During the year, Accounts Receivable and Inventory increased P15,000 and P40,000, respectively. Prepaid Expenses and Accounts Payable decreased P2,000 and P4,000, respectively. There was also a loss on the sale of equipment of P3,000. How much cash was provided by operating activities? O a.P196,000. O b. P202,000. OC. P276,000. Od. P288,000.
The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets Cash 24,700 $ 41,750 Accounts receivable 188,500 183,400 Allowance for doubtful accounts (15,000) (16,500) FVTOCI investments 260,000 200,000 FVTPL investments 60,000 80,000 Inventory Prepaid insurance 184,000 161,000 18,000 16.000 665,650 150,000 1,480,000 -580,000 S 1,400,000 $ 1,050,000 $ 2,120,200 $ 1,715,650 $ 720,200 $ Land 400,000 Buildings and equipment Accumulated depreciation 1,650,000 -650,000 Liabilities and Shareholders' Equity Short-term bank loan 22,000 5000 103,600 16,750 Accounts payable Unearned revenues Тах рayable Dividends payable 119,300 20,400 19,900 25,000 16,600 30,000 $ 187,250 S $ 800,000 $ 1,124,950 186,300 Common shares 800,000 Retained earnings 747,350 -18,000 1,529,350 $ 2,120,200 $ 1,715,650 AOC- FVTOCI investments 8,000 1,932,950 Kaminsky Ltd Statement of Income for the…
The balances below have been extracted from the accounting records of Moscow Ltd at 31 Decembe Dr Cr £ £ Bank account 238,000 Retained profits at 1 January 2021 2,123,000 Freehold land 2,000,000 Buildings: cost Buildings: accumulated depreciation at 1 January 2021 Plant & machinery: cost Plant & machinery: accumulated depreciation at 1 January 2021 Trade payables 8,000,000 2,000,000 3,750,000 2,340,000 520,000 Trade receivables 450,000 Return outwards 38,000 Inventory at 1 January 2021 267,000 Revenue 5,006,000 Purchases 3,200,000 8% Debenture loan: repayable in 2026 2,000,000 Debenture interest 80,000 Return inwards 66,000 Distribution costs 382,000 Administrative expenses Prepayment on building insurance at 1 January 2021 Ordinary share capital 514,000 80,000 5,000,000 19,027,000 19,027,000 You are given the following information: Inventory at 31 December 2021 cost £300,000. This includes some slow-moving items which c which would normally sell for £22,000 but which the directors…