Instructions. Answer the following problems below: The following information were taken from the books of Maria Mot on December 31, 2020. Merchandise Inventory, January 1 ₱ 140,000 Merchandise Inventory, December 31 125,000 Sales 680,650 Sales return and allowances 85,000 Sales discount 75,000 Purchases 535,500 Purchase returns and allowances 11,000 Purchase discounts 5,300 Freight-in 12,500 Salaries expense-Selling 30,500 Salaries expense-Administrative 21,750 Advertising expense 42,000 Supplies expense-Selling 7,250 Supplies expense-Administrative 8,275 Utilities expense 12,500 Rent expense 60,000 Depreciation expense 22,500 Interest expense 25,000 The utilities, rent, and depreciation expenses are shared as 45% administrative and 55% selling. Tax expense is at 30%. Required: Prepare a multi-step statement of comprehensive income for the year ended December 31, 2020. Listed below are the income and expenses account of ALT Realty for the year ended December 31, 2020. Sales revenue ₱ 785,000 Salaries expense 212,000 Advertising expense 75,000 Rent expense 120,000 Commission expense 47,500 Interest income 12,750 Depreciation expense 60,000 Utilities expense 62,500 Office supplies expense 25,000 Representation expense 84,000 At the start of the year, the owner has a capital balance of P150, 000. During the year, the owner made an additional investment of P125, 000 and withdrew P27,000. Required: Prepare a single-step statement of comprehensive income and statement of changes in owner’s equity.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Instructions. Answer the following problems below:
- The following information were taken from the books of Maria Mot on December 31, 2020.
|
Merchandise Inventory, January 1 |
₱ 140,000 |
|
|
Merchandise Inventory, December 31 |
125,000 |
|
|
Sales |
680,650 |
|
|
Sales return and allowances |
85,000 |
|
|
Sales discount |
75,000 |
|
|
Purchases |
535,500 |
|
|
Purchase returns and allowances |
11,000 |
|
|
Purchase discounts |
5,300 |
|
|
Freight-in |
12,500 |
|
|
Salaries expense-Selling |
30,500 |
|
|
Salaries expense-Administrative |
21,750 |
|
|
Advertising expense |
42,000 |
|
|
Supplies expense-Selling |
7,250 |
|
|
Supplies expense-Administrative |
8,275 |
|
|
Utilities expense |
12,500 |
|
|
Rent expense |
60,000 |
|
|
|
22,500 |
|
|
Interest expense |
25,000 |
The utilities, rent, and depreciation expenses are shared as 45% administrative and 55% selling. Tax expense is at 30%.
Required: Prepare a multi-step statement of comprehensive income for the year ended December 31, 2020.
- Listed below are the income and expenses account of ALT Realty for the year ended December 31, 2020.
|
Sales revenue |
₱ 785,000 |
|
|
Salaries expense |
212,000 |
|
|
Advertising expense |
75,000 |
|
|
Rent expense |
120,000 |
|
|
Commission expense |
47,500 |
|
|
Interest income |
12,750 |
|
|
Depreciation expense |
60,000 |
|
|
Utilities expense |
62,500 |
|
|
Office supplies expense |
25,000 |
|
|
Representation expense |
84,000 |
At the start of the year, the owner has a capital balance of P150, 000. During the year, the owner made an additional investment of P125, 000 and withdrew P27,000.
Required: Prepare a single-step statement of comprehensive income and statement of changes in owner’s equity.
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