Mr. Lim started the business a small groceries shop during the year. He is seeking your help todetermine the financial results for the year ended 31.12.2020 with the following informationextracted from the cash flows record:Opening BankInflows:2,000Capital10,000Cash Sales30,000Trable receivable125,000165,000167,000Outflows:Wages and Salaries45,000Rental18,000Suppliers65,000Office equipment10,000(138,000)Closing Cash29,000Additional information at the year end:1. Closing inventory amounted to $8,000.2. Wages owed amounted to $5,000.3. Amount of $6,000 still owed to suppliers and amount of $4,000 not yet collected fromcustomers.4. Mr. Lim intends to use the office equipment for 5 years without any future scrap value.Required:Based on the information above, draft a Statement of Income for the year ended 31.12.2020 for MrLim.

Statement of Income for Mr. Lim's Grocery ShopFor the Year Ended December 31, 2020RevenuesCash Sales…

Answered: Mr. Lim started the business a small…

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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The breakdown of the Cash and Cash Equivalents account of C Corporation as of December 31, 2021 is as follows:Cash on hand 135,000Cash funds 5,450,000Cash in bank 8,900,000Investments 2,400,000Some relevant items related to cash on hand are presented below:• Included in the balance are as follows:o A check received from a customer dated January 5, 2022, P5,000o A customer check dated November 11, 2021, P12,000o A customer check dated February 4, 2021, P5,000o Unused postage stamps, P800o An undelivered check dated December 28, 2021, P24,000• Excluded from the balance are as follows:o A customer check dated December 30, 2021, P10,000o An undelivered check dated December 30, 2021, P8,000o A customer check dated March 31, 2021, P1,000o Money order, P4,500Relevant information regarding the cash funds are as follows:• The petty cash fund balance is at P20,000. As of December 31, 2021, included in the fund are bills and coins forP8,000, and various expense vouchers at P12,000.• Dividend…
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Normanby Bank has the following balance sheet. Assets ($ million) Liabilities and equity ($ million) Treasury notes 85 Deposits 125 Loans 115 Interbank funds 55 Equity 20 Total assets 200 Total liabilities and equity 200 One of Normanby Bank’s wholesale customers decides to make an immediate deposit withdrawal of $15 million. To fund this withdrawal request, the bank adopts a liability liquidity management approach via the interbank funds market. Which of the following statements is CORRECT? Select one: a. After the transactions, the bank has 140m in deposits, 40m in interbank funds, and total assets remain unchanged. b. After the transactions, the bank has 110m in deposits, 40m in interbank funds, and 170m in total assets. c. After the transactions, the bank has 125m in deposits, 70m in interbank funds, and 215m in total assets. d. After the transactions, the bank has 110m in deposits,…
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