Document3- WordPAGE LAYOUTREFERENCESMAILINGSREVIEWVIEWFOXIT READER PDFERTDESIGN습 HyperfinkA Signature LineA Date & TimeP BookmarkQuick WordArt DropСapTextPictures Online Shapes SmartArt Chart Screenshot Apps for OnlineVideoPageNumber-Comment Header FooterC Cross-referenceBox- PartsDObject -OfficePicturesLinksCommentsHeader & FooterTextIlMustrationsAppsMediaAdax Designs Services is a partnership with Adam and Max as partners. Thepartnership has been operating successfully for a number of years now. The partnershave a written partnership agreement. The following information was extracted from theaccounting records of Adax. Design Services for the financial year ended 28 February2021:RBalances in the ledger as at 28 February 2021Land and buildings at costAccumulated depreciation: buildingsEquipment at carrying amountDebtors835 000(65 000)270 000103 000400 000Capital- AndileCapital- SiphoCurrent account- Andile Credit balance (1 March 2020)Current account -Sipho – Debit balance (1 March 2020Drawings - Andile: GeneralDrawings - Sipho: GeneralNet profit for the year ended 28 February 2021300 00040 00020 000130 000102 000800 000The following must still be taken into account:1. The partnership agreement makes provision for the following:• Interest on capital must be provided at 12% per year on the balances in thecapital accounts for the period 1 March 2020 to 31 August 2020. The interest rateWORDSDesktop16°Ce here to searchpockard bell Document3 - WordFILEHOMEINSERTDESIGNPAGE LAYOUTREFERENCESMAILINGSREVIEWVIEWFOXIT READER PDFE Cover Page -A Hyperlink2 Sign.#3D Blank PageBookmarkDatePictures Online Shapes SmartArt Chart Screenshot Apps forOfficeTableOnlineComment Header FooterPageTextQuick WordArt DropPage BreakVideo Cross-referencePicturesNumber-Box Parts -Cap- DObjePagesTablesIllustrationsAppsMediaLinksCommentsHeader & FooterTextcapital accounts for the period1 March 2020 to 31 August 2020. The interest rateincreases to 15% per year for the remainder of the year ie 1 September 2020 to28 February 2021. The capital accounts remained unchanged.• Interest on current accounts must be provided at 12% per year on the openingbalances of the current accounts.• The partners are entitled to the following monthly salaries:- Andile R18 000 per month for a full year.- Sipho R20 000 per year for the full year.• Andile and Sipho withdrew 50% of their monthly salaries in cash as drawings.These amounts are not included in the drawings account shown above.• Sipho is entitled to a special bonus equal to 2,5% of the net profit for theyear.• Andile and Sipho share profits and losses in the ratio of 3:2 respectively.Required:Use the information provided above to prepare the statement of changes in equity(current accounts only) for the year ended 28 February 2021.Use the following format: Capital accounts section is NOT required.Statement of changes in equity for the year ended 28 February 2021Curont A cconnte onlyPAGE 4 OF 82124 WORDSSinhoAnnronuintiosP Type here to search

Equity refers to the sum value of money or capital invested by the owners in their company.

have a written partnership agreement. The following information was extracted from the accounting records of Adax. Design Services for the financial year ended 28 February 2021: Balances in the ledger as at 28 February 2021 Land and buildings at cost Accumulated depreciation: buildings Equipment at carrying amount Debtors 835 000 (65 000) 270 000 103 000 400 000

have a written partnership agreement. The following information was extracted from the accounting records of Adax. Design Services for the financial year ended 28 February 2021: Balances in the ledger as at 28 February 2021 Land and buildings at cost Accumulated depreciation: buildings Equipment at carrying amount Debtors 835 000 (65 000) 270 000 103 000 400 000

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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Required information [The following information applies to the questions displayed below.] The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 Plant assets Equipment Accumulated depreciation Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net $ 245,000 (125,000) $ 119,000 1 Cash received from the sale of building 2. Depreciation expense 3 Purchase of building $ 445,000 (139,000) $306,000 2020 $335,000 (236,000) $ 99,000 $ 465,000 (324,000) $ 141,000 During 2021, a building with a book value of $83,000 and an original cost of $365,000 was sold at a gain of $73,000. 1. How much cash did Anders receive from the sale of the building? 2. How much depreciation expense was recorded on buildings during 2021? 3. What was the cost of buildings purchased by Anders during 2021?
List down short term and long term investments of the company.
Selected accounts included in the property, plant, and equipment section of Splish Corporation’s balance sheet at December 31, 2019, had the following balances. Land $378,000 Land improvements 176,400 Buildings 1,386,000 Equipment 1,209,600 During 2020, the following transactions occurred. 1. A tract of land was acquired for $189,000 as a potential future building site. 2. A plant facility consisting of land and building was acquired from Mendota Company in exchange for 25,200 shares of Splish’s common stock. On the acquisition date, Splish’s stock had a closing market price of $37 per share on a national stock exchange. The plant facility was carried on Mendota’s books at $138,600 for land and $403,200 for the building at the exchange date. Current appraised values for the land and building, respectively, are $289,800 and $869,400. 3. Items of machinery and equipment were purchased at a total cost of $504,000. Additional costs were incurred as…
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(a) Draw up a profit or loss appropriation account for Lekan, Chuks & Hassan for the year ending 31 March 2015 and prepare current account as at that date from the following information: 1. Drawings: Lekan N3,500, Chuks N11,500 and Hassan N8,500 2. Capital account: Lekan N30,000, Chuks N22,500 and Hassan N17,500 3. Current account: Lekan N9,000, Chuks N4,000 and Hassan N3,000 4. Profits to be shared: Lekan 50%, Chuks 30% and Hassan 20% 5. Salaries to be credited: Chuks N11,000 and Hassan N14,000 6. Interest to be charged on drawings: Lekan N600, Chuks N450 and Hassan N250 7. Net profits N92,400 8. Interest to be charged on Capital: Lekan N1,800, Chuks N1,350 and Hassan N1,050
Required information [The following information applies to the questions displayed below.] The plant assets section of the comparative balance sheets of Anders Company is reported below. ANDERS COMPANY Comparative Year-End Balance Sheets 2021 Plant assets Equipment Accumulated depreciation-Equipment Equipment, net Buildings Accumulated depreciation-Buildings Buildings, net 1. Cash received from the sale of equipment 2. Depreciation expense 3. Purchase of equipment $ 180,000 (100,000) $ 80,000 $ $ 380,000 (100,000) $ 280,000 During 2021, equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000. 1. How much cash did Anders receive from the sale of equipment? 2. How much depreciation expense was recorded on equipment during 2021? 3. What was the cost of new equipment purchased by Anders during 2021? 2020 37,000 $ 270,000 (210,000) $ 60,000 $ 400,000 (285,000) $ 115,000
Thrasher Construction Co. was contracted to construct a building for $1,045,000. The building is owned by the customer throughout the contract period. The contract provides for progress payments. Thrasher's accounting year ends 31 December. Work began under the contract on 1 July 20X5, and was completed on 30 September 20X7. Construction activities are summarized below by year: 20X5 Construction costs incurred during the year, $192,600; estimated costs to complete, $674,100; progress billings during the year, $163,500; and collections, $149,800. 20x6 Construction costs incurred during the year, $481,500; estimated costs to complete, $203,300; progress billing during the year, $409,100; and collections, $406,600. 20X7 Construction costs incurred during the year, $209,000. Because the contract was completed, the remaining balance was billed and later collected in full per the contract. Required: 1. Prepare Thrasher's journal entries to record these events. Assume that percentage of…
The following items are taken from the financial statements of the Riverbed Service for the year ending December 31, 2020: Accounts payable $ 18400 Accounts receivable 11000 Accumulated depreciation – equipment 27800 Advertising expense 20900 Cash 15000 Owner’s capital (1/1/20) 100600 Owner's drawings 13800 Depreciation expense 12300 Insurance expense 3100 Note payable, due 6/30/21 69200 Prepaid insurance (12-month policy) 6200 Rent expense 16900 Salaries and wages expense 31800 Service revenue 132300 Supplies 4100 Supplies expense 5900 Equipment 207300 What is the balance that would be reported for owner’s equity at December 31, 2020?