On December 31, 2016, CLOUDY was depressed upon seeing the following accounts in his ledger. In order for him to easily know the results of his operations he hired SUNSHINE, to assist him. The following data were taken from the incomplete accounting records maintained by CLOUDY: Account Balances January 1 December 31 6,790 8,610 10,850 Cash 4,560 Accounts receivable 5,940 Merchandise Inventory 9,720 Prepaid expenses Equipment, net Accounts payable Loans payable Accrued expenses 750 600 9,550 6,990 4,000 450 8,500 7,330 2,750 560 Transactions per CASHBOOK during 2016: RECEIPTS: From Customers 67,950 4,000 From Bank loan Other income 800 PAΥΜΕNTS To trade creditors 51,860 5,250 8,140 2,000 2,000 To bank loan For various expenses Purchase of equipment To owner for drawings Additional Information: Purchase returns amounted to P1,530. Goods received from suppliers on December 20, 2016, P850, was not invoiced to and recorded by the shop until January 2017. Sales returns during the year were P2,500. Bad debts written off directly against accounts receivable were P1,080. The only change in the equipment was the purchase of a new computer on June 30, 2016. Depreciation charges are credited to the fixed asset account from the month following the purchase.
On December 31, 2016, CLOUDY was depressed upon seeing the following accounts in his ledger. In order for him to easily know the results of his operations he hired SUNSHINE, to assist him. The following data were taken from the incomplete accounting records maintained by CLOUDY: Account Balances January 1 December 31 6,790 8,610 10,850 Cash 4,560 Accounts receivable 5,940 Merchandise Inventory 9,720 Prepaid expenses Equipment, net Accounts payable Loans payable Accrued expenses 750 600 9,550 6,990 4,000 450 8,500 7,330 2,750 560 Transactions per CASHBOOK during 2016: RECEIPTS: From Customers 67,950 4,000 From Bank loan Other income 800 PAΥΜΕNTS To trade creditors 51,860 5,250 8,140 2,000 2,000 To bank loan For various expenses Purchase of equipment To owner for drawings Additional Information: Purchase returns amounted to P1,530. Goods received from suppliers on December 20, 2016, P850, was not invoiced to and recorded by the shop until January 2017. Sales returns during the year were P2,500. Bad debts written off directly against accounts receivable were P1,080. The only change in the equipment was the purchase of a new computer on June 30, 2016. Depreciation charges are credited to the fixed asset account from the month following the purchase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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find the cost of sales
Transcribed Image Text:On December 31, 2016, CLOUDY was depressed upon seeing the following accounts in his ledger.
In order for him to easily know the results of his operations he hired SUNSHINE, to assist him. The
following data were taken from the incomplete accounting records maintained by CLOUDY:
Account Balances
January 1
December
31
Cash
6,790
4,560
5,940
9,720
600
Accounts receivable
8,610
Merchandise Inventory 10,850
Prepaid expenses
Equipment, net
Accounts payable
Loans payable
Accrued expenses
750
9,550
6,990
8,500
7,330
4,000
450
2,750
560
Transactions per CASHBOOK during 2016:
RECEIPTS:
67,950
4,000
From Customers
From Bank loan
Other income
800
PAYMENTS
To trade creditors
51,860
5,250
8,140
2,000
2,000
To bank loan
For various expenses
Purchase of equipment
To owner for drawings
Additional Information:
Purchase returns amounted to P1,530. Goods received from suppliers on December 20,
2016, P850, was not invoiced to and recorded by the shop until January 2017.
Sales returns during the year were P2,500. Bad debts written off directly against accounts
receivable were P1,080.
The only change in the equipment was the purchase of a new computer on June 30, 2016.
Depreciation charges are credited to the fixed asset account from the month following the
purchase.
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