At 1 January 2021 Javid has an accrual for electricity of £215. During the year to 31 December 2021 he made payments totalling £3,420 for electricity. At the 31 December he has calculated an accrual of £310 Which of these statements is correct concerning the accounting for the electricity in the financial statements for year end 31 December 2021? a. Statement of profit or loss Expense £3,325 Statement of financial position Liability £310 b. Statement of profit or loss Expense £3,325 Statement of financial position Asset £310 c. Statement of profit or loss Expense £3,515 Statement of financial position Asset £310 d. Statement of profit or loss Expense £3,515 Statement of financial position Liability £310

At 1 January 2021 Javid has an accrual for electricity of £215. During the year to 31 December 2021 he made payments totalling £3,420 for electricity. At the 31 December he has calculated an accrual of £310 Which of these statements is correct concerning the accounting for the electricity in the financial statements for year end 31 December 2021? a. Statement of profit or loss Expense £3,325 Statement of financial position Liability £310 b. Statement of profit or loss Expense £3,325 Statement of financial position Asset £310 c. Statement of profit or loss Expense £3,515 Statement of financial position Asset £310 d. Statement of profit or loss Expense £3,515 Statement of financial position Liability £310

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

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Eddy's statement of profit or loss for his first year of trading to 30 September 2019 showed a charge for insurance of £9,000. Eddy actually paid £13,000 for insurance during that financial year. Which of the following statements is true? a. Insurance had been prepaid by £4,000 at the year end. b. Insurance of £4,000 had been accrued for at the year end. c. Insurance of £9,000 had been accrued for at the year end. d. Insurance of £9,000 had been prepaid at the year end.
The following are the summarised financial information of Ting Ltd for the two financial years ended 31 October 2020 are as follows:2019 2020£ million £ millionEquity 2,460.8 1,732.8 Non-current liabilities (Loans) 640.0 800.0 Current liabilities 654.4 1,020.5 Non-current assets 2,804.8 2,367.2 Current assets 950.4 962.4 Revenue 1,601.6 1,509.6 Total expenses 1,444.0 1,492.8 Required:(a) Calculate the following financial ratios for the two years: 2019 and 2020:(i) Current ratio (ii) Capital gearing ratio (iii) Profit margin (b) Comment briefly on the ratios of the company, computed in part (a) over the two year period from 2019 to 2020. (c) Provide any two (2) recommendations on how the company may improve these ratios in the futur.
KPL Ltd has a year end of 31 March 2021. During the year it paid £1,600 for rent. At the start of the year it had an accrual of £400 and at 31 March 2021 had prepaid £250 of rent in respect of the year starting 1 April 2021. What is the charge to the income account for the year ended 31 March 2021? a) £950 b) £1,600 c) £1,450 d) £1,750
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…
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BTS Corp. collected P24,700 in interest during 2021. BTS showed P3,700 in interest receivable on its December 31, 2021 statement of financial position and P10,600 on December 31, 2020. How much is the Interest Revenue reported on BTS Company’s statement of comprehensive income for 2021?
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Berlin Company paid or collected during 2020 the following items: Insurance premiums paid P462,000; Interest collected 927,000; Salaries paid 4,056,000. The following balances have been excerpted from Berlin's statements of financial position for the year ended 12/31/2019 and 12/31/2020 respectively. Prepaid insurance P 45,000 P 36,000; Interest receivable 87,000 111,000; Salaries payable 318,000 369,000. Refer to Berlin, the interest income on the income statement for 2020 was Choices; P729,000 P951,000 P 903,000 P1,125,000
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