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Cash at Bank 19272 Work in Progress at Dec 31, 2019 25,000 Direct Expenses 18,900 Direct Wages 31,500 Electricity 15,000 Insurance 5,000

Cash at Bank 19272 Work in Progress at Dec 31, 2019 25,000 Direct Expenses 18,900 Direct Wages 31,500 Electricity 15,000 Insurance 5,000

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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Cash at Bank 19272 Work in Progress at Dec 31, 2019 25,000 Direct Expenses 18,900 Direct Wages 31,500 Electricity 15,000 Insuranco 5,000 Purchase of Raw Materials 120,000 Factory Maintenance 12,567 Provision for unrealized profit 15,447 Raw Material at Dec 31,2019 30,000 Sales 361,480 Salaries (Office Staff) 45,668 Office Expenses 3,480 Current Accounts at Dec 31, 2019: Mendez 5,516 Marshall 4,844 Capital Accounts: Mendez 86,000 Marshall 50,000 Drawings: Mendez 16,000 Marshall 22,000 Total 610,907 610,907 Additional Information: Stock of finish goods at Dec 31, 2020 was valued at $109,360 Stock of raw material at Dec 31, 2020 was valued at $25,000 Work-in-progress at Dec 31, 2020 was valued at $19,200 Factory profit is 20% on the cost of production. Office expenses owing $440 Electricity prepaid is $3000 The factory is responsible for 70% of the electricity, while the office is responsible for 60% of the insurance Provision for Depreciation: Motor Vehicle 20% of cost, Factory Equipment 10% on the reducing balance method. Interest is to be charged on drawings is 5% per annum. İnterest is allowed on capital accounts at the rate of 6% per annum. Marshall is allowed a salary of $15,000 per annum. Required:Prepare the partners' balance sheet for the year ended December 31, 2020
Transcribed Image Text:Cash at Bank 19272 Work in Progress at Dec 31, 2019 25,000 Direct Expenses 18,900 Direct Wages 31,500 Electricity 15,000 Insuranco 5,000 Purchase of Raw Materials 120,000 Factory Maintenance 12,567 Provision for unrealized profit 15,447 Raw Material at Dec 31,2019 30,000 Sales 361,480 Salaries (Office Staff) 45,668 Office Expenses 3,480 Current Accounts at Dec 31, 2019: Mendez 5,516 Marshall 4,844 Capital Accounts: Mendez 86,000 Marshall 50,000 Drawings: Mendez 16,000 Marshall 22,000 Total 610,907 610,907 Additional Information: Stock of finish goods at Dec 31, 2020 was valued at $109,360 Stock of raw material at Dec 31, 2020 was valued at $25,000 Work-in-progress at Dec 31, 2020 was valued at $19,200 Factory profit is 20% on the cost of production. Office expenses owing $440 Electricity prepaid is $3000 The factory is responsible for 70% of the electricity, while the office is responsible for 60% of the insurance Provision for Depreciation: Motor Vehicle 20% of cost, Factory Equipment 10% on the reducing balance method. Interest is to be charged on drawings is 5% per annum. İnterest is allowed on capital accounts at the rate of 6% per annum. Marshall is allowed a salary of $15,000 per annum. Required:Prepare the partners' balance sheet for the year ended December 31, 2020
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