MIDWAY TRADERSPRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020Debit (R)Credit (R)Balance sheet accounts section1 656 600СapitalDrawingsLand and buildingsVehicles at cost134 2001 254 900945 000Equipment at cost650 000Accumulated depreciation on vehiclesAccumulated depreciation on equipment528 000365 200Fixed deposit: Pep Bank (8% p.a.)Trading inventoryDebtors control198 000155 000176 600Provision for bad debts9 900Bank137 800Creditors controlMortgage loan: Pep Bank (20% p.a.)184 800330 000Nominal accounts sectionSalesCost of salesSales returnsSalaries and wagesBad debtsStationery2 070 000794 00013 000587 00018 00030 00058 00032 00023 000Rates and taxesMotor expensesAdvertisingTelephoneElectricity and waterBank charges44 00066 0008 00010 000InsuranceInterest on fixed depositRent income14 000176 0005 334 5005 334 500 ADJUSTMENTS AND ADDITIONAL INFORMATION1.Physical stocktaking on 29 February 2020 showed the following inventories:1.1Trading inventory R150 000;1.2Stationery R3 000.2.Write off the account of debtor, R. Smith, R2 000.3.The provision for bad debts must be increased by R1 000.4.Rent income amounts to R16 000 per month. Make the necessary adjustment.5.The water and electricity account for February 2020 was due to be paid on 02 March 2020,R11 000.6.Rates and taxes include an amount of R15 000 that was paid for the period01 January 2020 to 31 March 2020.7.An amount of R800 appeared in the February 2020 bank statement for bank charges. Thistransaction was not recorded.8.The investment in fixed deposit was made on 01 March 2019 and matures on31 August 2020. Make the necessary adjustment for the interest.9.The loan from Pep Bank was obtained on 01 February 2020. Provide for the outstandinginterest. Interest is not capitalised. Note: Loan repayments during the next financial year areexpected to total R50 000.10.Provide for depreciation as follows:10.1 On equipment at 10% p.a. on cost.10.2 On vehicles at 20% p.a. using the diminishing balance method.11.The net profit, according to the Statement of Comprehensive Income for the year endedFebruary 2020, amounted to R429 140the above adjustments and additionalinformation were taken into account.TOTAL: 204

The income statement shows how much Gross profit, net profit earned by the business entity. In the…

MIDWAY TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020 Debit (R) Credit (R) Balance sheet accounts section Сapital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Fixed deposit: Pep Bank (8% p.a.) Trading inventory Debtors control 1 656 600 134 200 1 254 900 945 000 650 000 528 000 365 200 198 000 155 000 176 600 Provision for bad debts 9 900 137 800 Bank Creditors control Mortgage loan: Pep Bank (20% p.a.) 184 800 330 000 Nominal accounts section Sales 2 070 000 Cost of sales Sales retums Salaries and wages Bad debts Stationery Rates and taxes 794 000 13 000 587 000 18 000 2 30 000 58 000 32 000 23 000 Motor expenses Advertising Telephone Electricity and water Bank charges Insurance Interest on fixed deposit 44 000 66 000 8 000 10 000 14 000 176 000 5 334 500 Rent income 5 334 500

MIDWAY TRADERS PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2020 Debit (R) Credit (R) Balance sheet accounts section Сapital Drawings Land and buildings Vehicles at cost Equipment at cost Accumulated depreciation on vehicles Accumulated depreciation on equipment Fixed deposit: Pep Bank (8% p.a.) Trading inventory Debtors control 1 656 600 134 200 1 254 900 945 000 650 000 528 000 365 200 198 000 155 000 176 600 Provision for bad debts 9 900 137 800 Bank Creditors control Mortgage loan: Pep Bank (20% p.a.) 184 800 330 000 Nominal accounts section Sales 2 070 000 Cost of sales Sales retums Salaries and wages Bad debts Stationery Rates and taxes 794 000 13 000 587 000 18 000 2 30 000 58 000 32 000 23 000 Motor expenses Advertising Telephone Electricity and water Bank charges Insurance Interest on fixed deposit 44 000 66 000 8 000 10 000 14 000 176 000 5 334 500 Rent income 5 334 500

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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La Cash Land Long-term investments Merchandise inventory Notes receivable (due in 30 days) Notes receivable (due in 5 years) Prepaid insurance Short-term investments Supplies Total assets $ 12,000 30,000 15,000 O $20,750 O $24.750 O $30,750 O $80,750 6,000 1,000 5,000 1,500 10,000 250 $ 80,750 The company's unclassified balance sheet reported the assets listed in the above table. The total current assets that would be reported on a classified balance sheet prepared for the company are:
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Question Prepare the statement of profit or loss of Amazing Enterprise for the year ended 30 April 2021.
Trial Balance as at June 30, 2020 Dr $ Cr $ Cash 127,000 Accounts Receivable 151,000 Allowance for Bad-Debts 12,500 Merchandise Inventory 187,500 Store Supplies 58,000 Prepaid Insurance 72,000 Prepaid Rent 56,000 Furniture & Fixtures 800,000 Accumulated Depreciation: Furniture & Fixtures 256,000 Computer Equipment 450,000 Accumulated Depreciation: Computer Equipment Accounts Payable 133,500 Salaries Payable Interest Payable 27,000 Unearned Sales Revenue 82,000 Long-Term Loan 360,000 Eva Ready, Capital 898,500 Eva Ready, Withdrawals 104,000 Sales Revenue 1,043,000 Sales Discount 7,000 Sales Returns & Allowances 5,500 Cost of Goods Sold 403,000 Salaries Expense 165,000 Insurance Expense Utilities Expense…
CASE 5 The following selected accounts appeared in the trial balance of Susan Company as of December 31, 20x2: Debit Credit P150,000 2,000,000 Installment receivable - 20x1 Installment receivable - 20x2 Inventory, December 31, 20x1 Purchases 700,000 5,550,000 30,000 Repossession Installment sales P4,250,000 Regular sales 3,850,000 540,000 Deferred gross profit - 20x1 Operating expenses 1,250,000 Additional information: • Installment receivable - 20x1 as of December 31, 20x1 is P1,200,000. Inventory of new and repossessed merchandise as of December 31, 20x2 is P950,000. Gross profit percentage of regular sales during the year is 30% based on sales. Repossession was made during the year. It was a 20x1 sale, and the corresponding uncollected account at the time of repossession is P77,500. EQUIRED: 11. Total collections in 20x2 12. Gross profit rate on installment sales for 20x2 13. Loss on repossession
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Prepare income Statement
Question 5 Zombie Berhad has the following trial balance at 31 December 2021: Revenue Purchases Returns inwards Plant at cost Machinery at cost Office equipment at cost Accumulated depreciation-- Plant Accounts payable Long-term borrowing Accounts receivable Inventory -- Machinery - Office equipment Cash and bank Administration expenses Long term borrowing interests Salaries and wages Marketing expenses Discount allowed Share capital Retained profits as at 1 Jan 2021 General Reserve Total RM 730,600 208,000 10,712,000 4,940,000 4,680,000 2,191,072 218,400 358,904 520,000 26,000 252,720 208,000 72,800 25,118,496 RM 7,602,504 936,000 988,000 520,000 629,200 1,040,000 • Ordinary share dividend proposed to be 6%. Long term borrowing interest where half year interest still owing. 8,320,000 4,602,208 480,584 25,118,496 ..5/- Additional information: • Inventory as at 31 December 2021 was RM447,200. • Provision for company tax was RM429,520. • Depreciation 20% on cost per annum based on…
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Required information Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Debit $ 11,700 35,000 152,500 72,300 125,000 Accounts Credit Cash Accounts Receivable Inventory Land Buildings $ 2,300 10, 100 23, 200 205,000 155,900 Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals $396,500 $396,500 During January 2021, the following transactions occur: Borrow $105, 000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments Receive $31, 500 from customers on accounts receivable. January $2,030 are required at the end of ead onth for 6e months. January 4 January Pay cash on accounts payable, $16,000. 10 January Pay cash for salaries, $29,400. 15 January…
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