Co Company earns income from renting outviable spaces. The following are balancesfrom the company's balance sheet:December 31, 2017December 31, 2016Rent Receivable30,00065,000Prepaid InsuranceSuppliesSalaries Payable122,0001,500100,000110,0005,000130,000Unearned Rent Revenue700,000640,000The ff transactionsoccurred in 2017:25,000Cash paid for suppliesBought supplies on accountPaid wagesCash paid for insuranceCash received for rent in23,5001,300,000254,0005,300,000advanceRent receivable collected620,000What is the insurance expense for year ending December, 2017?

Insurance expenses for the year ending December, 2017 can be computed by using the following…

Answered: Co Company earns income from renting…

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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Below are the financial statements for RAM Furniture Bhd. for year of 2015. RAM Furniture Bhd. Balance Sheet As At 31 December 2015 (RM'000) 2,400 Account payable 600 Notes payable Cash Marketable securities Account receivables Inventories Prepaid expenses Plant and equipment Accumulated depreciation TOTAL ASSETS Net Sales Cost of goods sold Gross profit Operating expenses Net operating income Interest expenses Earnings before taxes Income taxes EARNINGS AFTER TAXES 20,000 Accrued expenses 24,000 Current ratio Quick ratio Debt ratio Time interest earned 600 Mortgage Term Loan 29,000 (14,600) Common shares Retained earnings RAM Furniture Bhd. Income Statement For The Year Ended 31 December 2015 (RM'000) 62,000 TOTAL LIABILITIES & EQUITY Industry Average Ratios 2.55 x Inventory turnover 1.70 x Average collection period Net profit margin Return on equity 76% 2.5 x a) Compute the above indicated ratios for RAM Furniture Bhd. 6,000 6,800 7,200 12,600 8,800 4,200 16,400 62,000 102,000…
The following information has been taken from the Ledger of Irfan Brothers Sadar Bazar, Karachi for the year ended on June 30, 2015. Stock of material, June 30 2015 Rs. 15,700 Stock of materials, July 1, 2014 12,000 Material purchased during the year 46,250 Carriage outward 1,075 Carriage inward 1,786 Salaries – Factory 1,625 Salaries – Office 3,150 Discount Expenses 725 Bad debts written off 1,628 Repairs of plant, machineries and tools 1,113 Rent and insurance – Factory 2,125 Rent and insurance – Office 500 Sales 115,275 Travelling Expenses 525 Traveler’s salaries and commission 1,925 Productive wages 31,500 Depreciation of machinery and tools 1,625 Depreciation of office furniture 75 Director’s fees 1,500 Gas, and water – Factory 300 Gas and water – Office 100 Manager’s salary (3/4th factory, 1/4th office) 2,500 General Expenses 850…
The following information has been taken from the Ledger of Numan Corporation for the year ended on June 30, 2015. Stock of material, June 30 2015 Rs. 15,700 Stock of materials, July 1, 2014 12,000 Material purchased during the year 46,250 Carriage outward 1,075 Carriage inward 1,786 Salaries – Factory 1,625 Salaries – Office 3,150 Discount Expenses 725 Bad debts written off 1,628 Repairs of plant, machineries and tools 1,113 Rent and insurance – Factory 2,125 Rent and insurance – Office 500 Sales 115,275 Travelling Expenses 525 Traveler’s salaries and commission 1,925 Productive wages 31,500 Depreciation of machinery and tools 1,625 Depreciation of office furniture 75 Director’s fees 1,500 Gas, and water – Factory 300 Gas and water – Office 100 Manager’s salary (3/4th factory, 1/4th office) 2,500 General Expenses 850 Calculate Conversion…
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2017: Cash Accounts Receivable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment 10,500 8,100 245,400 Accumulated Depreciation Office Equipment 166,800 Store Equipment 766,100 Accumulated Depreciation-Store Equipment 245,400 Accounts Payable 166,800 Salaries Payable 10,800 Customer Refunds Payable 10,000 Estimated Coupons Payable 3,000 Note Payable (final payment due in 20 years) 357,500 61,400 491,600 66,800 Common Stock Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense-Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense $111,500 297,400 339,000 5,000 4,085,000 2,362,800 Insurance Expense Depreciation Expense- Office Equipment Office Supplies Expense Miscellaneous Administrative Expense Interest Expense Required: 1. Prepare…
The following information has been taken from the Ledger of Irfan Brothers Sadar Bazar, Karachi for the year ended on June 30, 2015. Stock of material, June 30 2015 Rs. 15,700 Stock of materials, July 1, 2014 12,000 Material purchased during the year 46,250 Carriage outward 1,075 Carriage inward 1,786 Salaries – Factory 1,625 Salaries – Office 3,150 Discount Expenses 725 Bad debts written off 1,628 Repairs of plant, machineries and tools 1,113 Rent and insurance – Factory 2,125 Rent and insurance – Office 500 Sales 115,275 Travelling Expenses 525 Traveler’s salaries and commission 1,925 Productive wages 31,500 Depreciation of machinery and tools 1,625 Depreciation of office furniture 75 Director’s fees 1,500 Gas, and water – Factory 300 Gas and water – Office 100 Manager’s salary (3/4th factory, 1/4th office) 2,500 General Expenses 850…
Current Attempt in Progress Oriole Company had the following transactions during 2016: • Sales of $10080 on account • Collected $4480 for services to be performed in 2017 • Paid $4200 cash in salaries for 2016 • Purchased airline tickets for $560 in December for a trip to take place in 2017 What is Oriole's 2016 net income using a crual accounting? O $5880 O $10360 O $6440 O $10920 esc %23 $4 % 21 4. 5 d f
A company produces customary products as per the specifications of its customers wish. The cost for unit one, variable cost amounts to 4,000, labor cost 2,000 (40 hrs. @ rate of 50 hour). LC ratio will be presumed at ninety percent. Company has the policy where it will deploy only one labor for an order. Price per product to be quoted for the customer where the required contribution target is 3,000 per unit.
Required: INCOME STATEMENT for the month ended February 28, 2015
You are provided with the Financial Statements of Commercial Hospitality Traders for the year ended 30 June 2017. Analyse the statements and provide advice to the owners. Commercial Hospitality Traders Income Statement For the year ended 30 June 2017 $ $ $ Sales 178,000 Less Cost of Goods Sold 95,000 83,000 Less Inventory adjustment 230 Gross Profit 82,770 Add other revenue Rent Received 15,600 Gain on disposal of furniture 290 98,660 Less Other Operating Expenses SELLING AND DISTRIBUTION Advertising 2,600 Sales commission expense 1,340 Sales salaries 26,000 Delivery expenses 1,240 Depreciation - delivery vehicles 3,200 Depreciation - shop fittings 1,520 35,900 GENERAL AND ADMINISTRATIVE Rates 1,200 Wages…
The following information has been taken from the Ledger of Numan Corporation for the year ended on June 30, 2015. Stock of material, June 30 2015 Rs. 15,700 Stock of materials, July 1, 2014 12,000 Material purchased during the year 46,250 Carriage outward 1,075 Carriage inward 1,786 Salaries – Factory 1,625 Salaries – Office 3,150 Discount Expenses 725 Bad debts written off 1,628 Repairs of plant, machineries and tools 1,113 Rent and insurance – Factory 2,125 Rent and insurance – Office 500 Sales 115,275 Travelling Expenses 525 Traveler’s salaries and commission 1,925 Productive wages 31,500 Depreciation of machinery and tools 1,625 Depreciation of office furniture 75 Director’s fees 1,500 Gas, and water – Factory 300 Gas and water – Office 100 Manager’s salary (3/4th factory, 1/4th office) 2,500 General Expenses 850 Calculate Factory Cost…
Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2017 Additional information: As of February 1, 2017, current assets were $120,000 and current liabilities were $40,000. Instructions Compute the current ratio as of the beginning of the month and after each transaction

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