b. Uncollectable Debts written off amounted to R1 500 during 2020.3. Cash received from customers for the year amounted to R145 000.4. The business utilised the perpetual inventory system to record inventory.5. Cash payments made to suppliers for the credit purchase of inventory amounted to R95 000.6. During the year, R5 670 worth of credit notes were received from suppliers for the return ofinventory purchased on credit.7. Included in accounts payable the following amounts owing to suppliers for the purchase ofinventory amounted to:а.At 31 December 2019: R12 000b. At 31 December 2020: R20 0008. Distributions to the owner amounted to R5 000.9. The owner contributed R6 000 worth of furniturebe used by the business during the 2020financial year.10. No other capital contributions were made during the year.Required:1) Calculate the value of Sales that will be reported in the Statement of Profit and Loss for theperiod ended 31 December 2020.2) Calculate the value of Cost of Sales that will be reported in the Statement of Profit and Lossfor the period ended 31 December 2020.3) Calculate the Net Profit for the period ended 31 December 2020.4) Calculate the total operating expenses incurred for the period ended 31 December 2020. (Ignore VAT)Looking Glass is a window repair business and has a year end of 31 December. The followingStatement of Financial Position was reported for the year ended 31 December 2020:Looking GlassStatement of Financial Position at 31 December 202031/12/202031/12/2019RASSETSNon-current AssetsFurniture and fittings52 00050 000Cost66 00060 000Accumulated depreciation000)Current Assets74 00059 200Inventory32 00030 000Accounts Receivable30 00019 200Bank12 00010 000126 000109 200EQUITY AND LIABILITIESEquityСapital104 00094 200Current LiabilitiesAccounts Payable22 00015 000126 000109 200The following information is available:5/71. All sales are made on credit.2. Accounts Receivable is reported at the carrying value after taking into account:а.Allowance for Doubtful Debts amounted to R4 800 at 31 December 2019 and R7 500at 31 December 2020.

Name: b. Uncollectable Debts written off amounted to R1 500 during 2020.3.
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: b. Uncollectable Debts written off amounted to R1 500 during 2020.3. Cash received from customers for the year amounted to R145 000.4. The business utilised the perpetual inventory system to record inventory.5. Cash payments made to suppliers for th

Since we answer only upto three sub-parts, we shall answer first three. Please resubmit a new…

Business

Accounting

Looking Glass is a window repair business and has a year end of 31 December. The following Statement of Financial Position was reported for the year ended 31 December 2020: Looking Glass Statement of Financial Position at 31 December 2020 31/12/2020 31/12/2019 ASSETS Non-current Assets Furniture and fittings 52 000 50 000 Cost 66 000 60 000 Accumulated depreciation (14 000) (10 000) Current Assets 74 000 59 200 Inventory 32 000 30 000 Accounts Receivable 30 000 19 200 Bank 12 000 10 000 126 000 109 200 EQUITY AND LIABILITIES Equity Capital 104 000 94 200 Current Liabilities Accounts Payable 22 000 15 000 126 000 109 200 The following information is available: 1. All sales are made on credit. 2. Accounts Receivable is reported at the carrying value after taking into account: a. Allowance for Doubtful Debts amounted to R4 800 at 31 December 2019 and R7 500 at 31 December 2020.

Looking Glass is a window repair business and has a year end of 31 December. The following Statement of Financial Position was reported for the year ended 31 December 2020: Looking Glass Statement of Financial Position at 31 December 2020 31/12/2020 31/12/2019 ASSETS Non-current Assets Furniture and fittings 52 000 50 000 Cost 66 000 60 000 Accumulated depreciation (14 000) (10 000) Current Assets 74 000 59 200 Inventory 32 000 30 000 Accounts Receivable 30 000 19 200 Bank 12 000 10 000 126 000 109 200 EQUITY AND LIABILITIES Equity Capital 104 000 94 200 Current Liabilities Accounts Payable 22 000 15 000 126 000 109 200 The following information is available: 1. All sales are made on credit. 2. Accounts Receivable is reported at the carrying value after taking into account: a. Allowance for Doubtful Debts amounted to R4 800 at 31 December 2019 and R7 500 at 31 December 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Window World Company's income statement for the year ending December 31, 2024 included the following items: Interest revenue $65,500 Salaries expense 85,000 Cost of goods sold 217,600 The company's comparative balance sheets included the following: 31-Dec-24 31-Dec-23 Interest receivable $9,100 $7,500 Salaries payable 8,900 4,200 Accounts payable 12,700 10,900 Inventory 36,100 32,500 What amount of cash was received for interest revenue during 2024? Select one: $65,500 $63,900 $67,100 $56,400
ces For the year just completed, Hanna Company had net income of $90,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Income taxes payable December 31 End of Year $ 55,000 $ 152,000 $ 451,000 $ 12,000 $ 356,000 $ 8,000 $ 35,000 Beginning of Year $ 83,000 $184,000 $ 343,000 $ 14,000 $ 400,000 $ 11,500 $ 27,000 The Accumulated Depreciation account had total credits of $58,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.) Hanna Company Statement of Cash Flows-Indirect Method (partial) +
The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $23,500 $18,700 Accounts receivable (net) 56,000 48,000 Merchandise inventory 35,500 40,000 Prepaid expenses 4,750 7,000 Accounts payable (merchandise creditors) 21,800 16,800 Wages payable 4,900 5,800 A.Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. B.Briefly explain why net cash flows from operating activities is different from net income.
The net income reported on the income statement for the current year was $128,000. Depreciation recorded on store equipment for the year amounted to $21,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $51,200 $47,100 Accounts receivable (net) 36,710 34,810 Merchandise inventory 50,120 52,990 Prepaid expenses 5,630 4,470 Accounts payable (merchandise creditors) 47,970 44,560 Wages payable 26,210 29,110 ii) Express quantitative information to show an understanding, and or purposes of your work by for instance explaining why net cash flows from operating activities is different from net income.
Following are selected accounts for Best Buy, Inc., for the fiscal year ended February 2, 2019. (a) Indicate whether each account appears on the balance sheet (B) or income statement (I). Best Buy, Inc. ($ millions)Amount Classification Sales $42,879 Answer B I Accumulated depreciation 6,690 Answer B I Depreciation expense 770 Answer B I Retained earnings 2,985 Answer B I Net income 1,464 Answer B I Property, plant & equipment, net 2,510 Answer B I Selling, general and admin expense 8,015 Answer B I Accounts receivable 1,015 AnswerB I Total liabilities 9,595 Answer B I Stockholders' equity 3,306 Answer B I (b) Using the data, compute total assets and total expenses. Total Assets Answer Total Expenses Answer answer complete and correct and in detail with all work
For the year just completed, Hanna Company had net income of $63,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents $ 64,000 $ 77,000 Accounts receivable $ 154,000 $ 184,000 Inventory $ 433,000 $ 346,000 Prepaid expenses $ 12,000 $ 14,000 Current liabilities: Accounts payable $ 354,000 $ 388,000 Accrued liabilities $ 9,000 $ 11,500 Income taxes payable $ 35,000 $ 26,000 The Accumulated Depreciation account had total credits of $54,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash outflows as negative amounts.) Hanna Company Statement of Cash Flows—Indirect Method (partial)…
Balance sheet preparation Use the appropriate items from the following list to prepare in good form Mellark's Baked Goods balance sheet at the end of the year. Complete the fragment of the balance sheet below ($000): (Select the correct account from the drop-d Mellark's Baked Goods Balance Sheet as of December 31, 2021 Assets Current assets: Total current assets $ $ Data table Accounts payable Accounts receivable Accruals Accumulated depreciation Buildings Cash Common stock (at par) Cost of goods sold Depreciation expense Equipment Furniture and fixtures General expense Inventories Land Long-term debts Machinery Marketable securities Notes payable Paid-in capital in excess of par Preferred stock Retained earnings Sales revenue Vehicles $219 447 51 260 225 217 92 2,503 50 148 166 320 380 95 421 416 76 479 360 96 218 3,567 26 - X
The condensed financial statements of Carla Vista Co. for the years 2021 and 2022 are presented below. CARLA VISTA CO.Balance SheetsDecember 31 (in thousands)20222021Current assets Cash and cash equivalents$330$360 Accounts receivable (net)590520 Inventory640570 Prepaid expenses130160 Total current assets1,6901,610Property, plant, and equipment (net)410380Investments130130Intangibles and other assets530510 Total assets$2,760$2,630Current liabilities$940$910Long-term liabilities660560Stockholders’ equity—common1,1601,160 Total liabilities and stockholders’ equity$2,760$2,630 CARLA VISTA CO.Income StatementsFor the Year Ended December 31 (in thousands)20222021Sales revenue$3,980$3,640Costs and expenses Cost of goods sold1,0901,010 Selling & administrative expenses2,4002,330 Interest expense1020 Total costs and expenses3,5003,360Income before income taxes480280Income tax expense192112Net income$ 288$ 168 Compute the following ratios for 2022 and 2021.…
For the year just completed, Hanna Company had net income of $37,500. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents $ 56,000 $ 83,000 Accounts receivable $ 164,000 $ 200,000 Inventory $ 436,000 $ 364,000 Prepaid expenses $ 11,000 $ 13,000 Current liabilities: Accounts payable $ 354,000 $ 384,000 Accrued liabilities $ 9,000 $ 12,000 Income taxes payable $ 34,000 $ 26,000 The Accumulated Depreciation account had total credits of $58,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash outflows as negative amounts.)
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2024 2023 $5,250,000 $4,350,000 2,170,000 3,030,000 970,000 845,000 530,000 472,000 167,000 157,000 234,000 Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $116,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 234,000 116,000 1/1/2024-9/30/2024 $ 570,000 (375,000) (67,000) (37,000) $ 91,000 2023 $ 670,000 (422,000) (57,000) (37,000) $ 154,000 In addition to the…
Simon Company's year-end balance sheets follow, At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net $ 30,847 85,864 112,410 9,639 278,899 $4 36,772 $ 37,181 60,602 82,558 9,090 257, 236 49,574 52,807 4,131 224,507 Total assets $ 517,659 $ 446,258 S 368, 200 Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 131,475 73,909 $ 48,116 95,373 163, 500 127,311 83,813 163, 500 72,771 $ 446,258 $ 368,200 101,613 163, 500 107,236 Total liabilities and equity $ 517,659 1. Express the balance sheets in common-size percents. (Do not round intermediate calculations and answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivab assets favorable or unfavorable?