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i. The Statement of Profit and Loss for the year ending December 31, 2020 ii. The Statement of Financial Position at at December 31, 2020

i. The Statement of Profit and Loss for the year ending December 31, 2020 ii. The Statement of Financial Position at at December 31, 2020

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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2b. The following trial balance was obtained from the books of Ramon Castello as at December 31, 2020: DETAILS CR Cash Land and Building Provision for Depreciation on Building Motor Vehicle Provision for Depreciation on Motor Vehicle Machinery and Equipment Provision for Depreciation on Machinery & Equipment Capital Drawings 10% Loan Motor Vehicle Repairs Commission Received. Opening Stock Insurance Bad Debts Sales Wages and Salaries Carriage Inwards Discount Received Loan Interest Creditors Returns Rent Received Purchases Debtors Provision for Bad Debts. Telephone Charges Bank ASSET Land and Building Motor Vehicle Machinery and Equipment DR 15,000 420,000 RATE METHOD 310,000 285,000 Required Prepare the following 22,500 37,250 60,500 32,000 8,500 65,000 14,000 24,000 7,000 410,000 70,000 18,000 f. Commission income is owing by $15,000 g. The provision for bad debts is to be adjusted to 5% of debtors h. Depreciation charges are to be applied as follows 10% Reducing Balance 5% Straight Line 5% Reducing Balance 64,000 45,000 57,000 425,000 ii. The Statement of Financial Position at at December 31, 2020 300,000 65,000 Additional Notes a. Stock at year end was valued at $85,000 b. Wages is owing by $15,000 c. Insurance is prepaid by $3,000 d. During the year the owner took goods values at $12,500. This was not yet recorded e. The rent received is prepaid by $12,000 630,500 17,000 85,050 1,798,750 1,798,750 52,500 8,500 45,000 4,200 i. The Statement of Profit and Loss for the year ending December 31, 2020
Transcribed Image Text:2b. The following trial balance was obtained from the books of Ramon Castello as at December 31, 2020: DETAILS CR Cash Land and Building Provision for Depreciation on Building Motor Vehicle Provision for Depreciation on Motor Vehicle Machinery and Equipment Provision for Depreciation on Machinery & Equipment Capital Drawings 10% Loan Motor Vehicle Repairs Commission Received. Opening Stock Insurance Bad Debts Sales Wages and Salaries Carriage Inwards Discount Received Loan Interest Creditors Returns Rent Received Purchases Debtors Provision for Bad Debts. Telephone Charges Bank ASSET Land and Building Motor Vehicle Machinery and Equipment DR 15,000 420,000 RATE METHOD 310,000 285,000 Required Prepare the following 22,500 37,250 60,500 32,000 8,500 65,000 14,000 24,000 7,000 410,000 70,000 18,000 f. Commission income is owing by $15,000 g. The provision for bad debts is to be adjusted to 5% of debtors h. Depreciation charges are to be applied as follows 10% Reducing Balance 5% Straight Line 5% Reducing Balance 64,000 45,000 57,000 425,000 ii. The Statement of Financial Position at at December 31, 2020 300,000 65,000 Additional Notes a. Stock at year end was valued at $85,000 b. Wages is owing by $15,000 c. Insurance is prepaid by $3,000 d. During the year the owner took goods values at $12,500. This was not yet recorded e. The rent received is prepaid by $12,000 630,500 17,000 85,050 1,798,750 1,798,750 52,500 8,500 45,000 4,200 i. The Statement of Profit and Loss for the year ending December 31, 2020
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