On Ist January, 1990, the balances of M/s Khan Bros. are as follows;Liabilities & Owner's equity4.AssetsCashRs. 25000Creditors4000017000Capital94000Debtors of goodsStock of goodsBuilding2200070.000134000134000Transactions during the month of January;Jan:Purchased goods for cash Rs. 4,000 subject to a trade discount of 10%Sold goods for cash Rs. 12,000 Costing Rs. 10,500Cash paid to creditors Rs. 25,000Sold goods for cash Rs.5,000 and as credit basis Rs.3,000 costing Rs.6,000.11. Goods returned by a customer Rs. 2,000 costing Rs. 1,90015. Cash received from debtors Rs. 14,00018. Cash paid for furniture purchased for owner's domestic use Rs. 1,00022. Depreciation on building Rs. 1,40029. Paid telephone bill Rs. 60030. Paid salaries Rs. 3,890.1.5.7.9.Req. Show the effects of above transactions on the accounfing equation.

Double entry system: Under double entry system of accounting each transaction of business is…

Answered: On Ist January, 1990, the balances of…

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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On Dec 31, the company has $30.000 on hand; Cash($) account has a balance of 45.000 TL and exchange rate is 1,25 TL/$. Which entry is made on Dec 31? a.7.500 debit to 100-Cash($) and credit to 646-Forex Gain b.7.500 debit to 100-Cash($) and credit to 656-Forex Loss c.37.500 debit to 100-Cash($) and credit to 646-Forex Gain d.7.500 debit to 656-Forex Loss and credit to 100-Cash($)
[The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets $ 33,783 $ 39,888 71,898 89,474 10,785 286,555 $ 39,900 56,491 58,411 4,616 256,082 Cash Accounts receivable, net Merchandise inventory 97,913 125,594 10,989 310,097 Prepaid expenses Plant assets, net Total assets $ 578,376 $ 498,600 $ 415,500 Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings $ 144,016 $ 54,298 $81,735 113,531 163,500 139,834 109,822 163,500 91,826 163,500 105,876 161,038 Total liabilities and equity $ 578,376 $ 498,600 $ 415,500 For both the current year and one year ago, compute the following ratios: Exercise 17-11 (Algo) Analyzing profitability LO P3 The company's income statements for the Current Year and 1 Year Ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 751,889 $ 593,334 $ 458,652 Cost of goods sold…
What is the amount of sales under cash basis? What is the amount of purchases under cash basis? What is the cost of goods sold under cash basis? What is the amount of depreciation under cash basis? What is the net income under cash basis?
Q5. Shown below are selected financial data for Planet X, Inc. and Planet Y, Inc., at the end of the current year: Planet X, Inc. Planet Y, Inc. $ 700,000 550,000 30,000 80.000 150,000 100,000 Net credit sales Cost of goods sold Cash $ 800,000 600,000 80,000 Accounts receivable (net) 85,000 60,000 110,000 Inventory Current liabilities Instructions a. For each of the two companies, compute the following: 1. Current ratio 2. Quick ratio 3. Number of times inventory turned over during the year and the average number of days required to tum over inventory (round computation to the nearest day). 4. Number of times accounts receivable turned over during the year and the average number of days required to collect accounts receivable (round computation to the nearest day). b. From the viewpoint of a short-tem creditor, comment on the quality of each company's operations. To which company would you prefer to sell $40,000 in merchandise on a 30-day open account?
The following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000; Sales discounts P20,000; Sales returns and allowances P15,000; Purchase discounts P5,000; Purchase returns and allowances P7,000; Selling Expenses P40,000; General & Administrative expense P45,000; Interest income P5,000. What is the net income? P60,000 P65,000 P55,000 P180,000
On Ist January, 1990, the balances of M/s Khan Bros. are as follows; Assets Liabilities & Owner's equity Rs. 25000 Creditors 40000 Cash 17000 Capital 94000 Debtors of goods 22000 Stock of goods 70.000 134000 Building 134000 Transactions during the month of January; Jan: 1. Purchased goods for cash Rs. 4,000 subject to a trade discount of 10% 5. Sold goods for cash Rs. 12,000 Costing Rs. 10,500 7. Cash paid to creditors Rs. 25,000 9. Sold goods for cash Rs.5,000 and as credit basis Rs.3,000 costing Rs.6,000. 11. Goods returned by a customer Rs. 2,000 costing Rs. 1,900 15. Cash received from debtors Rs. 14,000 18. Cash paid for furniture purchased for owner's domestic use Rs. 1,000 22. Depreciation on building Rs. 1,400. 29. Paid telephone bill Rs. 600 30. Paid salaries Rs. 3,000. Req. Show the effects of above transactions on the accounfing equation. Ans: [Rs. 106400].
prepare a balance sheet and income statement from the following information: Cash $625.00 Revenue $21,000.00 Note Payable $5,000.00 Retained Earnings $10,600.00 Expenses $7,000.00 Issued Capital Stock $500.00 Accounts Receivable $2,500.00 Inventory $6,900.00 Accounts Payable $1,000.00 Cost of Goods Sold $10,500.00 Accrued Sales Tax $1,425.00 Prepaid Insurance $12,000.00 Plz answer fast without plagiarism i give up vote
The following items were among those that appeared on Rubi Co.’s books at the end of year 1: Merchandise inventory P600,000; Loans to employees 20,000. What amount should Rubi classify as monetary assets in preparing constant peso financial statements? P0 P 20,000 P600,000 P620,000
Following information is available for ABC Corporations. Calculate the amount of cash that is paid for merchandise for the current year. Cost of goods sold Merchandise inventory, prior year-end Merchandise inventory, current year-end Accounts payable, prior year-and Accounts payable, current year-and $115,790 $664,840 $671,635 $667,020 $655,700 $105,560 $115,790 $98,765 $99,855
Subject: accounting
Your company completed the following merchandise transactions during year 6: 1. On January 1, Year 6, your company had merchandise which cost $18,000 and had a net realizable value of $17,900. 2. Purchased $23,000 of merchandise for cash 3. Sold $19,000 of the merchandise for $36,400 on account. 4. Purchased $10,000 of merchandise on account, terms 2/10, n/30. 5. Paid for the merchandise in #3 on the eighth day after the purchase. 6. There were other purchases and sales throughout the year, but you do not need to record them, so no entry here. 7. Ended the year with merchandise which cost $26,000 (according to your calculations) and had a net realizable value of $25,400. INSTRUCTIONS: a. Prepare the entries for the transactions above assuming a Periodic inventory system, the allowance method for LCNRV, and the net method for purchase discounts. b. Prepare the entries for the transactions above assuming a Perpetual inventory system, the direct inventory reduction method for LCNRV, and…
The following items were among those that appeared on Rubi Co.’s books at the end of year 1: Merchandise inventory P600,000; Loans to employees 20,000. What amount should Rubi classify as monetary assets in preparing constant peso financial statements? P0 P 20,000 P600,000 P620,000

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