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NOURISH LTD BALANCE SHEET EXTRACT

NOURISH LTD BALANCE SHEET EXTRACT

FINANCIAL ACCOUNTING
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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Trans Opening Balances 1 2 3 4 5 6 7 8 9 Closing Balances Cash at Bank 8.500 Accounts Receivable 23,640 Current Assets Inventory Current Liabilities Working Capital ASSETS 18,900 Prepaid Insurance 2,000 Equipment 6,500- Accumulated Depreciation 700 Accounts Payable 13,500 LIABILITIES Accrued Expenses Loan NOURISH LTD BALANCE SHEET EXTRACT FOR THE MONTH ENDING 31 DECEMBER 2022 $ 10,000 Capital EQUITY Net Income Revenue $ Expenses
Transcribed Image Text:Trans Opening Balances 1 2 3 4 5 6 7 8 9 Closing Balances Cash at Bank 8.500 Accounts Receivable 23,640 Current Assets Inventory Current Liabilities Working Capital ASSETS 18,900 Prepaid Insurance 2,000 Equipment 6,500- Accumulated Depreciation 700 Accounts Payable 13,500 LIABILITIES Accrued Expenses Loan NOURISH LTD BALANCE SHEET EXTRACT FOR THE MONTH ENDING 31 DECEMBER 2022 $ 10,000 Capital EQUITY Net Income Revenue $ Expenses
Nourish Ltd is a wholesale merchant. The opening balances of assets and liabilities as at 1 December 2022 are as listed on the worksheet in the Excel template provided below. The business uses the perpetual inventory system. During December, the transactions were as follows: 1. Purchased inventory on credit for $6,500 from Food Ltd. 2. Paid advertising in the local magazine, $320. 3. Sold products to Healthy Eating Ltd for $5,500 on credit. The cost of these goods was $3,000. 4. Received payment from an accounts receivable client of $3,640. 5. Paid $10,000 to Tasty Ltd, for credit purchases made in November 2022. 6. The owner took $400 of cash from the business to buy her husband a Christmas gift. 7. Usually, the business incurs electricity of approximately $300 but no bill has been received for December. 8. Depreciation for the month is calculated using the straight-line method. The estimated useful life of the equipment is five years at the end of which it is expected to have a scrap value of $1,100. 9. An annual insurance premium of $2,400 was paid on 1 October and as at 1 December the prepaid amount was $2,000. The insurance expense for the month of December is recognised at the end of the month.
Transcribed Image Text:Nourish Ltd is a wholesale merchant. The opening balances of assets and liabilities as at 1 December 2022 are as listed on the worksheet in the Excel template provided below. The business uses the perpetual inventory system. During December, the transactions were as follows: 1. Purchased inventory on credit for $6,500 from Food Ltd. 2. Paid advertising in the local magazine, $320. 3. Sold products to Healthy Eating Ltd for $5,500 on credit. The cost of these goods was $3,000. 4. Received payment from an accounts receivable client of $3,640. 5. Paid $10,000 to Tasty Ltd, for credit purchases made in November 2022. 6. The owner took $400 of cash from the business to buy her husband a Christmas gift. 7. Usually, the business incurs electricity of approximately $300 but no bill has been received for December. 8. Depreciation for the month is calculated using the straight-line method. The estimated useful life of the equipment is five years at the end of which it is expected to have a scrap value of $1,100. 9. An annual insurance premium of $2,400 was paid on 1 October and as at 1 December the prepaid amount was $2,000. The insurance expense for the month of December is recognised at the end of the month.
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