A new merchandising business, Dazzle Corporation started its operations last January 1, 2020. Presented below is information concerning the financial condition of Dazzle Corporation for the calendar year 2020: Prepare original entries. The following transactions has transpired during 2021:a. Furniture & fixtures was purchased on credit for Php50,000.b. Merchandise costing Php202,560 was bought, 50% was paid in cash and the remaining on account.c. Sold merchandise for Php150,000. The company maintains a mark-up of 60% based on cost.d. Utility bills for the year is Php5,368.Additional Information:e. The following fixed assets are as follows:Initial CostAccumulatedDepreciation (as ofDec. 31, 2020)Estimated UsefulLifeResidual ValueBuilding & Equipment84,80016,0005 yrs.4,800Furniture & Fixtures50,00005 yrs.1,000All fixed assets are depreciated using straight line method.f. Unexpired insurance at the end of the year is Php14,000.g. Wages of employees worth Php2,500 was paid in cash. This includes the wages from last year.h. Last year, Dazzle Corporation received an offer from local business owner to rent the unused portion of its land. Dazzle Corporation agreed to rent the land for 5 years, payable in advance. Dazzle Corporation received Php150,000 on December 31, 2020 and properly recorded theamount as deferred income in its December 31, 2020 balance sheet. ngASSETSCurrent AssetsCashAccounts ReceivableMerchandise InventoryPrepaid InsuranceTotal Current AssetsNoncurrent AssetsLandBuilding & EquipmentLess: Accumulated Depreciation -Building & EquipmentNet Noncurrent AssetsTOTAL ASSETSDazzle CorporationBalance SheetAs of December 31, 2020P 253,700.00120,000.0016,900.0015,000.00* 405,600.00500,000.0084,800.0016,000.00# 568,800.00# 974,400.00LIABILITIES & STOCKHOLDER'S EQUITYCurrent LiabilitiesAccounts PayableDeferred IncomeWages PayableBank Loans PayableTotal Current LiabilitiesStockholder's EquityCommon StocksRetained EarningsTotal Stockholder's EquityTOTAL LIABILITIES &STOCKHOLDER'S EQUITYP 124,000.00150,000.00500.0063,840.00# 338,340.00450,750.00185,310.00# 636,060.00#974,400.00

Journal entries recording is the first step of accounting cycle process, under which at least one…

new merchandising business, Dazzle Corporation started its operations last January 1, 2020. Presented below is information concerning the financial condition of Dazzle Corporation for the calendar year 2020: Prepare original entries.

new merchandising business, Dazzle Corporation started its operations last January 1, 2020. Presented below is information concerning the financial condition of Dazzle Corporation for the calendar year 2020: Prepare original entries.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Hallmark Company began business on October 1, 2020. Following are some of the company's transactions…

A: Current liabilities means the liabilities which will be paid with in short period of time , one year…

Q: The following are select entries for St Francis Clinic for December 31, 2020. In alphabetical order.…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Consider the following events for Cullumber's Innovations Co. that occurred during 2024. For each…

A: Income Statement The financial report that signifies the overall profitability of a company at the…

Q: Which required item from the 10-K would this content be located? "The total square footage of…

A: The answer is (C) - Properties "The total square footage of our retail stores and outlet centers at…

Q: Consider the following events for Cullumber's Innovations Co. that occurred during 2024. For each…

A: Accrual concept of accounting is the basis of recognizing revenue and expenses with respect to the…

Q: On May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Winterfell Products manufactures electrical switches for the aerospace industry. For the year ending…

A: Income statement: It tells the Net profit / loss of the company. All the Revenues and expenses of…

Q: Using the information below, compute total accrual basis cost of goods sold. Alpha keeps its…

A: Cash basis refers to a significant accounting technique that records revenues and costs as soon as…

Q: New Planet Structures, Inc., builds environmentally sensitive structures. The company's 2021…

A: Liabilities refer to the obligation that a company is obliged to pay within a period of time. The…

Q: A simplified balance sheet for Galaxy Cafe Inc. contain the following amounts at the end of 2019 and…

A: Cash flow Net amount of cash that an entity receives and expends over the course of a given period.…

Q: 26. The following is the trial balance of Locke Ltd at 31 December 2020. Account name Dr Cr Sales…

A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…

Q: Fast Shipping provides a broad range of transportation, e-commerce and business services. The…

A: Ratio analysis: Ratio analysis is a quantitative tool for evaluating the company's financial…

Q: Cullumber Medical manufactures hospital beds and other institutional furniture. The company's…

A: Gross margin percentage. Formula: Gross Margin % = Gross Profit/Sales Revenue x100 Return on Asset…

Q: Sales revenue (all on account) $10,177,250 $9,614,00C Cost of goods sold 5,611,750 5,298,750 Gross…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: Use the information from part a. Assume that, on the same day the sale occurred, Bramble enters into…

A: In case of Sale and lease back, if the lease is financial lease then no sale is recognized in the…

Q: At May 31, 2022, the accounts of Sandhill Company show the following. 1. 2. 3. 4. May 1…

A: Preparation of partial Balance sheet of sandhill company are as follows

Q: Search online for Tesla’s Annual Report for fiscal year 2020 that ended on December 31, 2020. Answer…

A: Ratios help analyse how the company is performing. They help investors get valuable insights about…

Q: raded company, is preparing the interim financial data which it will issue to its stockholders and…

A: Cost of goods sold refers to the expenses involved while selling a good or service by a company in…

Q: The following financial information has been collected for Polite Ltd for the month of October 2020.…

A: Net income: It implies to the excess of company's net sales revenue over the expenses incurred by…

Question

A new merchandising business, Dazzle Corporation started its operations last January 1, 2020. Presented below is information concerning the financial condition of Dazzle Corporation for the calendar year 2020:

Prepare original entries.

The following transactions has transpired during 2021:
a. Furniture & fixtures was purchased on credit for Php50,000.
b. Merchandise costing Php202,560 was bought, 50% was paid in cash and the remaining on account.
c. Sold merchandise for Php150,000. The company maintains a mark-up of 60% based on cost.
d. Utility bills for the year is Php5,368.
Additional Information:
e. The following fixed assets are as follows:
Initial Cost
Accumulated
Depreciation (as of
Dec. 31, 2020)
Estimated Useful
Life
Residual Value
Building & Equipment
84,800
16,000
5 yrs.
4,800
Furniture & Fixtures
50,000
0
5 yrs.
1,000
All fixed assets are depreciated using straight line method.
f. Unexpired insurance at the end of the year is Php14,000.
g. Wages of employees worth Php2,500 was paid in cash. This includes the wages from last year.
h. Last year, Dazzle Corporation received an offer from local business owner to rent the unused portion of its land. Dazzle Corporation agreed to rent the land for 5 years, payable in advance. Dazzle Corporation received Php150,000 on December 31, 2020 and properly recorded the
amount as deferred income in its December 31, 2020 balance sheet.

ng
ASSETS
Current Assets
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Insurance
Total Current Assets
Noncurrent Assets
Land
Building & Equipment
Less: Accumulated Depreciation -
Building & Equipment
Net Noncurrent Assets
TOTAL ASSETS
Dazzle Corporation
Balance Sheet
As of December 31, 2020
P 253,700.00
120,000.00
16,900.00
15,000.00
* 405,600.00
500,000.00
84,800.00
16,000.00
# 568,800.00
# 974,400.00
LIABILITIES & STOCKHOLDER'S EQUITY
Current Liabilities
Accounts Payable
Deferred Income
Wages Payable
Bank Loans Payable
Total Current Liabilities
Stockholder's Equity
Common Stocks
Retained Earnings
Total Stockholder's Equity
TOTAL LIABILITIES &
STOCKHOLDER'S EQUITY
P 124,000.00
150,000.00
500.00
63,840.00
# 338,340.00
450,750.00
185,310.00
# 636,060.00
#974,400.00

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A small taxi company presents the following preliminary balance sheet as of December 31 in the financial statements for the year 2020. The preliminary one is when we are in November 2020 and are budgeting for the financial year 2021. Balance sheet 20201231 ( Mkr) Cars 2960 Accounts receivable. 360 Cash 660 S: a assets 3980 tkr Equity 1145 (of which this year's res. 250) Loan 1950 Other Liabilities 885 S:a Ek & liabilities 3980 tkr The company has six taxis and hires staff to drive the cars. The customers consist of both private individuals and some of the municipality's schools. For the coming years, the company has budgeted personnel costs to a total of SEK 3,130,000. Other costs for fuel, car maintenance, etc. are believed to amount to SEK 1,225,000. It is estimated that the taxis will generate revenue of a total of SEK 5,300,000, ie approximately SEK 880,000 per car. In total, the cars are depreciated by SEK 550,000 per year. The loan interest rate is…
help me
Please Answer B, C and D from the screenshot.
Hello, Please assist with below accounting question, requesting note for financial statements???? Prepare the following note to the financial statements as at 28 February 2020: Property, plant and equipment Information as per belowThe following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the beginning of the financial year: Vehicles 300 000 Accumulated depreciation on vehicles 140 000 Equipment 130 000 Accumulated depreciation on equipment 75 000 Additional information 1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019. 2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019. 3) Depreciation is calculated on equipment at 10% per annum on cost. 4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance.
Please provide answer in text (Without image)
College Spirit sells sportswear with logos of major universities. At the end of 2019, the followingbalance sheet account balances were available.Accounts payable $104,700Accounts receivable 6,700Accumulated depreciation 23,700Bonds payable 180,000Cash 13,300Common stock 300,000Furniture 88,000Income taxes payable $ 11,400Inventory 481,400Long-term investment 110,900Note payable, short-term 50,000Prepaid rent (current) 54,000Retained earnings, 12/31/2019 84,500Required:1. Prepare a classified balance sheet for College Spirit at December 31, 2019.2. Compute College Spirit’s working capital and current ratio at December 31, 2019.3. CONCEPTUAL CONNECTION Comment on College Spirit’s liquidity as of December 31,2019.
Please help me
Blossom Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2019 and 2020 follow. Blossom MedicalComparative Balance SheetAs of December 31 2020 2019 Assets Current assets Cash $352,000 $417,400 Accounts receivable, net 1,000,000 776,400 Inventory 717,000 681,000 Other current assets 381,300 247,000 Total current assets 2,450,300 2,121,800 Property, plant, & equipment, net 8,766,170 8,440,100 Total assets $11,216,470 $10,561,900 Liabilities and Stockholders’ Equity Current liabilities $3,155,000 $2,846,000 Long-term debt 3,702,600 3,892,600 Total liabilities 6,857,600 6,738,600 Preferred stock, $5 par value 58,900 58,900 Common stock, $0.25 par value 104,600 103,800 Retained earnings 4,195,370…
33 Calorie Catering completed the following selected transactions during May 2024: (Click the icon to view the transactions.) Read the requirements Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. (Enter "0" for any transactions that do not affect revenues or expenses.) Date May 1 Help me solve Amount of Revenue (Expense) for May Cash Basis Amount of Revenue (Expense) $ (1,500) More info May 1 May 5 May 9 May 14 May 23 May 31 May 31 May 31 Accrual Basis Amount of Revenue (Expense) $ 0 Prepaid rent for three months, $1,500. Received and paid electricity bill, $400. Received cash for meals served to customers, $2,700. Paid cash for kitchen equipment, $3,120. Served a banquet on account, $2,900.…