Malbright is a limited liability company. The following trial balance for the yearended 31 October 20X7 is presented below:Buildings at costBuildings accumulated depreciationas at 1 November 20X6Plant at costPlant accumulated depreciationas at 1 November 20X6Overdraft at bankRevenuePurchasesInventory as at 1 November 20X6CashPayablesReceivablesAllowance for receivables as at 1 November 20X6Administrative expensesRetained earnings as at 1 November 20X6Share capitalShare premium accountThe following additional information is also available:(i)Dr$0007402201,140160203203252,925The allowance for receivables is to be increased to 5% of thereceivables balance.Cr$00060110701,80025010130415802,925

TASK 1Answer for whether the items belong to the statement of financial position (SOFP) as at 31st…

Answered: Malbright is a limited liability…

Malbright is a limited liability company. The following trial balance for the year ended 31 October 20X7 is presented below:

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

Ditsapelo Unlimited on 1 January 2024 granted 300 share appreciation rights (SARs) to each of its 200 employees on the condition that they continue to work for the entity for two years. At 1 January 2024, the entity expects that 50 of those employees will leave each year
Croyden is a calendar year, accrual basis corporation. Mr. and Mrs. Croyden (cash basis taxpayers) are the sole corporate shareholders. Mr. Croyden is president of the corporation, and Mrs. Croyden is vice president. Croyden’s financial records, prepared in accordance with GAAP, show the following information for the year: Use Table 7-1 and Table 7-2 Revenues from sales of goods $ 12,900,000 Cost of goods sold (LIFO) (9,260,000) Gross profit $ 3,640,000 Bad debt expense $ 24,000 Administrative salaries and wages 612,000 State and local business taxes 135,000 Interest expense 33,900 Advertising 67,000 Annual property insurance premiums 19,800 Annual life insurance premiums 7,300 Depreciation expense 148,800 Repairs, maintenance, utilities 81,000 Croyden’s records reveal the following facts: Under the UNICAP rules, Croyden had to capitalize $142,800 of administrative wages to inventory. These wages were expensed for financial statement purposes. Because of…
Villiage Corp., a calendar year corporation, began business in year 1. Village made a valid S corporation election on December 5, year 4, with unanioums consent of its shareholders. The eligibility requirements for S status continued to be met throughout year 5. On what date did Village's S status become effective? a, Jan 1, year 4, b Jan 1, year 5, c Dec 5, year 4, d Dec 5, year 5 my answer is b
A shareholder loaned $100,000 to the S Corp in TY2021 which was repaid in TY2022. Discuss the appropriate recording of the loan transactions for both years and the effect on shareholder basis for both years. State the applicable rules that apply to this situation.
B Ltd is a company in the chemical industry, situated near the Edward River. Its year end is 30th June 2021 and you were engaged as the auditor on that date. The profit before taxation shown in the draft accounts to 30th June is $24,000,000. The following matters have come to your attention:. A debtor owing $180,000 at 30th June 2021 was declared bankrupt on 1 August 2021. The trustee in bankruptcy has informed B Ltd that she does not expect a payment of more than 8cents in the $1 to be made to unsecured creditors With reference to relevant audit standards, identify the business risk and outline any resulting potential audit risks that may require further investigation.
XYZ is a calendar-year corporation that began business on January 1, 2021. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. XYZ corporation Income statement For current year Book Income Revenue from sales $ 40,000,000 Cost of Goods Sold (27,000,000) Gross profit $ 13,000,000 Other income: Income from investment in corporate stock 300,0001 Interest income 20,0002 Capital gains (losses) (4,000) Gain or loss from disposition of fixed assets 3,0003 Miscellaneous income 50,000 Gross Income $ 13,369,000 Expenses: Compensation (7,500,000)4 Stock option compensation (200,000)5 Advertising (1,350,000) Repairs and Maintenance (75,000) Rent (22,000) Bad Debt expense (41,000)6 Depreciation (1,400,000)7 Warranty expenses (70,000)8 Charitable donations (500,000)9 Meals (all at restaurants) (18,000) Goodwill impairment (30,000)10…
vis.34
Aardvark Corporation which had $10,000 of tax-exempt interest during the year, will enter $10,000 as an subtraction on Schedule M-1 of Form 1120. True False
Lee Manufacturing Corporation was incorporated on January 3, 2018.The corporation's financial statements for its first year's operations werenot examined by a CPA. You have been engaged to examine the financialstatements for the year ended December 31, 2019, and your examinationis substantially completed. Lee's trial balance at December 31, 2019,appears as follows: The following information relates to accounts that may vet requireadjustment:1. Patents for Lee's manufacturing process were acquired January2, 2019, at a cost of $68,000. An additional $17,000 was spent inDecember 2019 to improve machinery covered by the patents andcharged to the Patent account. Depreciation on fixed assets hasbeen properly recorded for 2019 in accordance with Lee's practicewhich provides a full year's depreciation for property on hand June30 and no depreciation otherwise. Lee uses the straight-linemethod fix all depreciation and amortization and amortizes itspatents over their legal life. 2. On January 3.…
The following information relates to Problems 48 through 53: For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily follow generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000, total liabilities of $100,000, total unrestricted net assets of $400,000, total temporarily restricted net assets of $300,000, and total permanently restricted net assets of $100,000. In addition, total expenses for the year were $500,000 (shown in unrestricted net assets). On January 1, Year 2, several supporters of the entity above spent their own money to construct a garage for its vehicles that is worth $70,000. It should last for 10 years and will have no salvage value although no time restriction was assumed. The entity increased its contributed support within the unrestricted net assets by $70,000 and increased its expenses within unrestricted net…
Tiger Corp is a calendar year taxpayer that elected S status in its first year of operations. Tiger is owned by Harbert (600 shares with beginning AB = $12,000) and Leath (400 shares with beginning AB = $8000). The income statement for Tiger Corp is presented below. The corporation’s beginning AAA balance was -$30,000, OAA was $1,000, and Accumulated E&P from prior years as a C corp was $1,000. Sales Revenue $105,000 Municipal bond income $5,000 Cost of goods sold ($45,000) Salary expense to owners ($20,000) Employee wages ($5,000) Net STCG stock sale $2,000 Depreciation expense ($10,000) Charitable contributions ($1,000) Fines and Penalties ($2,000) Net Income $29,000 Tax depreciation is $15,000 of which $5,000 is Sec. 179 depreciation. Tiger Corp also made a $10,000 distribution. Provide a book-tax reconciliation above and distinguish between ordinary business income (loss) and separately stated items…
In organizing its incorporation in January, Chupatch incurred the following costs: state incorporation fees: $250, attorney fees: $2,500, and promotional costs: $3,200. What journal entry would you make to record Chupatch's expenses? Make it below: Date Account Debit Credit