Calculate the allowance ratio for the year ending 30 June 2020. Assume the number of days in the year is 365. Round the percentage change to one decimal place Current LiabilitiesAccounts PayableLoan Payable - Short TermUnearned RevenueTotal Current Liabilities220,531340,00010,00017,57910,329367,579230,860Non-current LiabilitiesLoan Payable - Long TermMortgage33,0007,0002,000Total Non-current Liabilities40,0002,000TOTAL LIABILITIES407,579232,860Shareholders' EquityContributed CapitalRetained EarningsTotal Shareholders' Equity20,0006,42420,00068,87326,42488,873TOTAL LIABILITIES &434,003321,733SHAREHOLDERS' EQUITY Kristina's Consulting BusinessComparative Balance SheetsAs at 30/06/2020As at 30/06/2019Current assetsCash122,53680,145Accounts receivable (gross)183,692(21,200)96,411(5,200)Allowance for bad debtsNet accounts receivableInventorySuppliesPrepaid Rent162,49211,67591,2115,1673002103,0003,000Total Current Assets300,003179,733Non-current AssetsEquipmentLess Accumulated Depreciation150,000(16,000)150,000(8,000)Total Non-current Assets134,000142,000TOTAL ASSETS434.003321.733

Allowance Ratio considering : Beginning Allowance is numerator and Current Year's Accounts…

Answered: Calculate the allowance ratio for the…

Calculate the allowance ratio for the year ending 30 June 2020. Assume the number of days in the year is 365. Round the percentage change to one decimal place

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Calculate the allowance ratio for the year ending 30 June 2020. Assume the number of days in the year is 365. Round the percentage change to one decimal place

Current Liabilities
Accounts Payable
Loan Payable - Short Term
Unearned Revenue
Total Current Liabilities
220,531
340,000
10,000
17,579
10,329
367,579
230,860
Non-current Liabilities
Loan Payable - Long Term
Mortgage
33,000
7,000
2,000
Total Non-current Liabilities
40,000
2,000
TOTAL LIABILITIES
407,579
232,860
Shareholders' Equity
Contributed Capital
Retained Earnings
Total Shareholders' Equity
20,000
6,424
20,000
68,873
26,424
88,873
TOTAL LIABILITIES &
434,003
321,733
SHAREHOLDERS' EQUITY

Kristina's Consulting Business
Comparative Balance Sheets
As at 30/06/2020
As at 30/06/2019
Current assets
Cash
122,536
80,145
Accounts receivable (gross)
183,692
(21,200)
96,411
(5,200)
Allowance for bad debts
Net accounts receivable
Inventory
Supplies
Prepaid Rent
162,492
11,675
91,211
5,167
300
210
3,000
3,000
Total Current Assets
300,003
179,733
Non-current Assets
Equipment
Less Accumulated Depreciation
150,000
(16,000)
150,000
(8,000)
Total Non-current Assets
134,000
142,000
TOTAL ASSETS
434.003
321.733

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