Peakhurst Limited had the following trial balance at 1 January 2016:Debit $Credit $Cash200 000Accounts receivable600 000Inventory700 000Prepaid insurance60 000Prepaid rent50 000Equipment1 000 000Allowance for doubtful debt20 000Accumulated depreciation200 000Accounts payable500 000Revenue received in advance100 000Income tax payable500 000Loan570 000Share capitalRetained profits400 000320 0002 610 0002 610 000You are given the following additional information for the year ended 31 December 2016:a) Bad debts of $8000 were written off.b) It was decided that allowance for doubtful debts should be 4 per cent of accounts receivable.Required:1) Prepare journal entries for these transactions.2) Show the T-ledger accounts for the following for the year ended 31 December 2016:a) accounts receivableb) allowance for doubtful debtsc) bad debts expense

Journal: It is the first step of recording financial transactions. It is used to prepare the…

Answered: Peakhurst Limited had the following…

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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JUBILEE’s trial balance from the general ledger at 31 December 2012 showed the following balances: GH¢’m GH¢’m Revenue 2,648 Loan note interest paid 3 Purchases 1,669 Distribution costs 514 Administrative expenses 345 Interim dividend paid 6 Inventories at 1 January 2012 444 Trade receivables 545 Trade payables 434 Cash and cash equivalents 28 50Gp ordinary shares 100 Capital surplus 814 Retained earnings at 1 January 2012 349 4% loan note repayable 2018 (issued 2010) 150 Land and buildings: Cost (including GH¢60m land) 380 Accumulated depreciation at 1/1/2012 64 Plant and equipment: Cost 258 Accumulated depreciation at 1/1/2012 126 Investment property at 1 January 2012 548 Rental income 48 Proceeds from sale of equipment 7 , 4,740 4,740 Further information to be taken into account: i. Closing inventories were counted and amounted to GH¢388m at cost. However, shortly after the year end out-of-date inventories with a cost of GH15m were sold for GH¢8m. ii. The company decided to…
Drama plc has a total balance on their receivables account at the year end of £54,500. After reviewing their customer accounts, Drama plc have decided to do the following: make a 50% specific provision relating to a debt of £9,200 create a general receivables provision of 2% Drama plc have a receivables provision brought forward of £2,850. What will be the value of the general receivables provision?£ 906 What will be the irrecoverable debt expense on the P or L? £ 2660 (Enter the values with no E sign, comma or decimal places)
On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:Accounts Debit CreditCash $ 21,900Accounts Receivable 36,500Allowance for Uncollectible Accounts $ 3,100Inventory 30,000Land 61,600Accounts Payable 32,400Notes Payable (8%, due in 3 years) 30,000Common Stock 56,000Retained Earnings 28,500Totals $150,000 $150,000The $30,000 beginning balance of inventory consists of 300 units, each costing…
The current assets and current liabilities sections of the balance sheet of Sunland Co. appear as follows. Sunland Co.Balance Sheet (Partial)As of December 31, 2017 Cash $ 17,900 Accounts payable $ 29,500 Accounts receivable $ 39,600 Notes payable 15,400 Less: Allowance for doubtful accounts 3,200 36,400 Unearned revenue 3,800 Inventory 61,100 Total current liabilities $ 48,700 Prepaid expenses 7,400 Total current assets $ 122,800 The following errors in the corporation’s accounting have been discovered: 1. Keane collected $ 5,200 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue. 2. The inventory amount reported included $ 2,300 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $ 1,600 had been received on…
The summarized trial balance of XYZ Corporation includes the following accounts on December 31,2022: Debit Credit Cash P 239,738 9,800 31,386 Accounts receivable Dividend receivable Interest receivable Investments at FVPL 956 136,910 Investments at FVOCI 3,760,944 1,310 Deferred tax asset Accounts payable P 20,506 Interest payable 560 Other payables 166 Income tax payable 484 Provision for employee benefits 1,504 Deferred tax liability 112,828 Share capital 2,736,048 Share premium 752,180 Retained Earnings 556,768 P4,181,044 P4,181,044 The provision for employee benefits includes P1,050 payable in the subsequent year. Required: 1. Prepare Statement of Financial Position
On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:Accounts Debit CreditCash $ 25,100Accounts Receivable 46,200Allowance for Uncollectible Accounts $ 4,200Inventory 20,000Land 46,000Equipment 15,000Accumulated Depreciation 1,500Accounts Payable 28,500Notes Payable (6%, due April 1, 2022) 50,000Common Stock 35,000Retained Earnings…
Below are Laiho Industries' 2017 and 2018 balance sheet items: Cash Accounts Receivable Long-Term Debt Accounts Payable Common Stock (total value) Notes Payable Net Fixed Assets Accruals Inventories Retained Earnings $ $ $ $ LA $ LA $ LA $ LA LA 2018 102,850.00 103,365.00 76,264.00 30,761.00 100,000.00 $ $ $ $ Sm 16,717.00 $ 67,165.00 $ 30,477.00 $ 38,444.00 $ 57,605.00 2017 89,725.00 85,527.00 63,914.00 23,109.00 90,000.00 14,217.00 42,436.00 22,656.00 34,982.00 38,774.00 Sales for 2018 were $455,150, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Given this information, construct the firm's 2018 income statement, statement of cash flows, and statement of owner's equity. Then answer the questions below.
On January 1, 2024, the general ledger of Tripley Company included the following account balances: Accounts Debit Credit Cash $ 274,000 Accounts receivable 74,000 Allowance for uncollectible accounts $ 37,400 Inventory 33,400 Building 243,400 Accumulated depreciation 44,000 Land 248,600 Accounts payable 190,000 Notes payable (8%, due in 3 years) 240,000 Common stock 119,600 Retained earnings 242,400 Totals $ 873,400 $ 873,400 The $33,400 beginning balance of inventory consists of 334 units, each costing $100. During January 2024, the company had the following transactions: January 2 Lent $54,000 to an employee by accepting a 6% note due in six months. January 5 Purchased 5,200 units of inventory on account for $572,000 ($110 each) with terms 110/110 , n30/�30 . January 8 Returned 100 defective units of inventory purchased on January 5. January 15 Sold 5,000 units of inventory on account for $820,000 ($164 each) with terms…
On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Debit Credit Cash $24,300 Accounts Receivable 42,500 Allowance for Uncollectible Accounts $2,700 Inventory 42,000 Land 79,600 Accounts Payable 29,200 Notes Payable (8%, due in 3 years) 42,000 Common Stock 68,000 Retained Earnings 46,500 Totals $188,400 $188,400 The $42,000 beginning balance of inventory consists of 420 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,050 units for $115,500 on account ($110 each). January 8 Purchase 1,150 units for $132,250 on account ($115 each). January 12 Purchase 1,250 units for $150,000 on account ($120 each). January 15 Return 160 of the units purchased on January 12 because of defects. January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO…
The following trial balance was extracted from the books of J. Brown as at 31 May 2021. DRCR $$ Purchases and Sales65,730 125,910 Stock at June 1, 202015,480 - Bank overdraft- 13,050 Capital- 21,600 Cash270 - Discounts4,320 2,880 Return inwards2,430 - Return outwards- 1,710 Carriage outwards6,480 - Carriage inwards2,850 - Rent and Rates5,220 - Provision for bad debts- 1,980 Machinery5,100 - Van9,300 - Provision for depreciation on Vans- 3,000 Provision for depreciation on Machinery- 1,500 Accounts Receivable and Payables35,730 18,180 Drawings8,640 - Wages and Salaries26,820 - General office expenses1,440 - 189,810 189,810 Notes:Closing stock $22,000Wages and salaries: accrual $900; Office expenses accrued $500Rent and rates prepaid $800Increase the provision for bad debts to $2,000Provision for depreciation Van 10% of cost, and Machinery 15% on the reducing balance method.(See requirements on next page.) Required:1: Prepare an Income Statement for the year ended May 31, 2021 2: From…
Sagar
POLKADOT Company disclosed the following information on December 31, 2021: Accrued rent expense 54,000 Share dividends payable 750,000 Accounts receivable, after deducting credit balances of customers’ accounts amounting to ₱42, 500 179,300 Estimated premium liability 65,800 Cash in bank, net of bank overdraft of ₱22,650 481,900 Deferred tax liability 215,500 Accounts payable, net of debit balances in suppliers’ accounts amounting to ₱8,310 95,420 Unearned interest income 225,000 Mortgage payable, issued on March 1, 2012, maturing after 10 years 1,500,000 Notes payable due to bank, 12% interest bearing note payable yearly, issued on August 31, 2021, maturing on August 31, 2022 1,000,000 Cash dividends payable 520,000 SSS payable 57,100 Serial bonds payable in 5 yearly installment of ₱250,000 payable every October 31 1,250,000 Estimated damages because of a supposed unsatisfactory performance on a contract, a possible obligation 75,000 Income tax payable…

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