Loss and profit statement and financial position
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6E: Balance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown...
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Loss and profit statement and financial position
![The following balances were extracted from the books of Mr.Telly, a sole trader, at 31 December
2020.
Building
Capital
Drawings
Fixtures & Fittings
Office equipment at cost
Allowance for doubtful debts 1 January 2020
Provision for depreciation at 1 January 2020
-Fixtures & Fittings
-Office equipment
Accounts receivable
Accounts payable
Inventory 1 January 2020
Bad debts
Sales
Purchases
Carriage on purchases
Utilities expenses
Advertising expenses
Item
annum
RM
50,000
60,000
2,490
13,200
19,200
170
8,340
7,360
12.639
9.870
5,690
230
85.920
52.970
5,200
8.965
1,026
Additional information:
i) Stock on 31 December 2020 was valued at RM8.230
ii) Utilities expenses, RM986 were accrued
iii) Advertising expenses, RM156 were prepaid.
iv) Fixtures & Fittings are to be depreciated using the straight line method at 10 % per
v Depreciation on the office equipment at 20% per ann using the diminishing balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbcf1533e-c140-462d-b4ca-1808d6e3d1e6%2F67008e5b-1d2d-4dce-98ce-0a2ed768e916%2Fod22ogx_processed.png&w=3840&q=75)
Transcribed Image Text:The following balances were extracted from the books of Mr.Telly, a sole trader, at 31 December
2020.
Building
Capital
Drawings
Fixtures & Fittings
Office equipment at cost
Allowance for doubtful debts 1 January 2020
Provision for depreciation at 1 January 2020
-Fixtures & Fittings
-Office equipment
Accounts receivable
Accounts payable
Inventory 1 January 2020
Bad debts
Sales
Purchases
Carriage on purchases
Utilities expenses
Advertising expenses
Item
annum
RM
50,000
60,000
2,490
13,200
19,200
170
8,340
7,360
12.639
9.870
5,690
230
85.920
52.970
5,200
8.965
1,026
Additional information:
i) Stock on 31 December 2020 was valued at RM8.230
ii) Utilities expenses, RM986 were accrued
iii) Advertising expenses, RM156 were prepaid.
iv) Fixtures & Fittings are to be depreciated using the straight line method at 10 % per
v Depreciation on the office equipment at 20% per ann using the diminishing balance
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