3. Depreciation for the "Equipment" has not been recorded for the current year.Included in "Equipment" was a newly acquired copier on 1 July 2022 at a cost of$20,000. All equipments are depreciated at 10% per annum on cost on a straight-line method with no residual value (to the beginning of the month foracquisitions during the year).4.6.the estimated net realizable value of $25,000 on 31 December 2022.5. The "Loan Payable" of $150,000 obtained from the bank on 1 October 2022 isrepayable in three equal annual payments with the first payment due on 1October 2023. Interest of 6% per annum is to be paid annually with the firstinterest payment due on 1 October 2023.a.The "Allowance for doubtful accounts" account at 31 December 2022 should be$7,250.C.The expenses should be classified in the following way for reporting on theIncome Statement:Category on Income StatementAdministrative expensesExpenses30% of salary expense, 30% of rentexpense, utilities expense, depreciationexpenseSelling and distribution expenses 70% of salary expense, selling expense,70% of rent expense, bad debt expenseOther expensesCost of goods soldRequired:Provide all (adjusting) journal entries necessary for the preparation of the 2022financial statements.Other expense, interest expenseInventory write-down expenseb. Prepare the income statements in multi-step format for the year ended 31December 2022.Prepare the statement of changes in equity for the year ended 31 December 2022. Causeway Ltd adopts perpetual inventory system and prepares its financial statementsat 31 December. The unadjusted trial balance of the company at 31 December 2022 isdetailed below:Account TitleLandEquipmentAccumulated depreciation - EquipmentInventoriesPrepaid rentAccounts receivableAllowance for doubtful accountsCashLoan payableAccounts payableTax payableShare capitalDividends - Interim (paid in August 2022)Retained earnings (at 1 January 2022)SalesCost of goods soldAdministrative expenseSalary expenseSelling expenseRent expenseUtilities expenseOther expenseTax expense+Dr$497,000120,000107,6007,200181,10063,40015,000554,10052,880174,00091,00018,000Cr$30,0005,000150,000222,50020,000100,000+274,5801,167,80021,20047,40020,000$1,969,880 $1,969,880Additional information:1. On 1 November 2022, Causeway Ltd paid $7,200 for office rent covering theperiod from 1 November 2022 to 31 January 2023 at $2,400 per month.Causeway Ltd recorded the total payment in "Prepaid rent" account.2. Included in "Inventories" were some inventories which were bought in year 2021costing $29,000. These inventories have still been kept in "Inventories" and have

Name: 3. Depreciation for the "Equipment" has not been recorded for the cur
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Description: 3. Depreciation for the "Equipment" has not been recorded for the current year.Included in "Equipment" was a newly acquired copier on 1 July 2022 at a cost of$20,000. All equipments are depreciated at 10% per annum on cost on a straight-line method

Adjusting entries are made at the end of the accounting period in order to accrue and defer income…

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Causeway Ltd adopts perpetual inventory system and prepares its financial statements at 31 December. The unadjusted trial balance of the company at 31 December 2022 is detailed below: Account Title Land Equipment Accumulated depreciation - Equipment Inventories Prepaid rent Accounts receivable Allowance for doubtful accounts Cash Loan payable Accounts payable Tax payable Share capital Dividends - Interim (paid in August 2022) Retained earnings (at 1 January 2022) Sales Cost of goods sold Administrative expense Salary expense Selling expense Rent expense Utilities expense Other expense Tax expense + Dr $497,000 120,000 107,600 7,200 181,100 63,400 15,000 Cr $30,000 5,000 150,000 222,500 20,000 100,000+ 274,580 1,167,800 554,100 52,880 174,000 91,000 18,000 21,200 47,400 20,000 $1,969,880 $1,969,880 Additional information: 1. On 1 November 2022, Causeway Ltd paid $7,200 for office rent covering the period from 1 November 2022 to 31 January 2023 at $2,400 per month. Causeway Ltd recorded the total payment in "Prepaid rent" account. 2. Included in "Inventories" were some inventories which were bought in year 2021 costing $29,000. These inventories have still been kept in "Inventories" and have

Causeway Ltd adopts perpetual inventory system and prepares its financial statements at 31 December. The unadjusted trial balance of the company at 31 December 2022 is detailed below: Account Title Land Equipment Accumulated depreciation - Equipment Inventories Prepaid rent Accounts receivable Allowance for doubtful accounts Cash Loan payable Accounts payable Tax payable Share capital Dividends - Interim (paid in August 2022) Retained earnings (at 1 January 2022) Sales Cost of goods sold Administrative expense Salary expense Selling expense Rent expense Utilities expense Other expense Tax expense + Dr $497,000 120,000 107,600 7,200 181,100 63,400 15,000 Cr $30,000 5,000 150,000 222,500 20,000 100,000+ 274,580 1,167,800 554,100 52,880 174,000 91,000 18,000 21,200 47,400 20,000 $1,969,880 $1,969,880 Additional information: 1. On 1 November 2022, Causeway Ltd paid $7,200 for office rent covering the period from 1 November 2022 to 31 January 2023 at $2,400 per month. Causeway Ltd recorded the total payment in "Prepaid rent" account. 2. Included in "Inventories" were some inventories which were bought in year 2021 costing $29,000. These inventories have still been kept in "Inventories" and have

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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