Prepare Shane's trading and profit and loss account for the year to 31 March 2019 and the balance sheet as at that date. Rs. Rs. Bank |Саpital Cash Drawings Insurance Office expenses Office furniture at cost | Office furniture: accumulated depreciation at 1 April 2018 Provision for doubtful debts at 1 April 2018 Purchases Salaries Sales 1200 33000 300 6000 2000 15000 5000 2000 500 | 55000 | 25000 100000 Stock at 1 April 2018 Trade creditors Trade debtors 10000 4000 | 20000 139500 139500 Additional Information: a. Stock at 31 March 2019 was valued at Rs. 15000. b. The insurance included Rs. 500 worth of cover which related to the year to 31 March 2020. c. Depreciation is charged on office furniture at 10 per cent per annum of its original cost. d. A bad debt of Rs. 1000 included in the trade debtors’ balance of Rs. 20000 is to be written off. e. The provision for doubtful debts is to be maintained at a level of 5 per cent of outstanding trade debtors as at 31 March 2019. f. At 31 March 2019, there was an amount owing for salaries of Rs. 1000.

Prepare Shane's trading and profit and loss account for the year to 31 March 2019 and the balance sheet as at that date. Rs. Rs. Bank |Саpital Cash Drawings Insurance Office expenses Office furniture at cost | Office furniture: accumulated depreciation at 1 April 2018 Provision for doubtful debts at 1 April 2018 Purchases Salaries Sales 1200 33000 300 6000 2000 15000 5000 2000 500 | 55000 | 25000 100000 Stock at 1 April 2018 Trade creditors Trade debtors 10000 4000 | 20000 139500 139500 Additional Information: a. Stock at 31 March 2019 was valued at Rs. 15000. b. The insurance included Rs. 500 worth of cover which related to the year to 31 March 2020. c. Depreciation is charged on office furniture at 10 per cent per annum of its original cost. d. A bad debt of Rs. 1000 included in the trade debtors’ balance of Rs. 20000 is to be written off. e. The provision for doubtful debts is to be maintained at a level of 5 per cent of outstanding trade debtors as at 31 March 2019. f. At 31 March 2019, there was an amount owing for salaries of Rs. 1000.

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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1. Accounts receivable balance as of December 31, 2020 2. Allowance for doubtful accounts as of December 31, 2020 3. Net realizable value, December 31, 2020 4. Doubtful accounts expense for 2020
The following selected account balances were taken from Buckeye Company's general ledger at January 1, 2019 and December 31, 2022: Accounts receivable Inventory Sales revenue Cost of goods sold January 1 $126,000 $163,000 The following information was taken from Buckeye Company's 2022 income statement: Salaries expense Income tax expense Net income December 31 $139,000 131,000 $967,250 $429, 240 $211,390 $ 97,986 $228,634 Calculate the average number of days that elapse between Buckeye Company buying their inventory from suppliers and then selling the inventory to customers.
Accounts Payable$ 46,000 Accounts Receivable23, 800Cash (balance on January 1, 2021)90, 400Cash ( balance on December 31, 2021)78,000Common Stock152, 500 Dividends0Equipment137, 700Income Tax Expense10, 200Interest Expense 29, 600Inventory 17, 300Notes Payable25,000Office Expense 14, 400Prepaid Rent7, 100 Retained Earnings (beginning)6, 800Salaries and Wages Expense35, 800Service Revenue139,800 Utilities Expense25, 200Salaries and Wages Payable9, 000 Other cash flow information: Cash from issuing common stock$ 22,000Cash paid to reacquire common stock24, 500Cash paid for income taxes11, 100Cash paid to purchase long-term assets53, 400Cash paid to suppliers and employees84, 400Cash received from customers139,000 Prepare a statement of retained earnings for 2021.
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Wildhorse Inc, a greeting card company, had the following statements prepared as of December 31, 2020. WILDHORSE INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6.000 $6,900 Accounts receivable 62,500 50,900 Short-term debt investments (available-for-sale) 35,200 17.900 Inventory 40,300 59,500 Prepaid rent 4,900 4,100 Equipment 153,100 129,600 Accumulated depreciation-equipment (35.200 ) 45.600 (24,700 ) Copyrights 50,500 Total assets $312.400 $294,700 Accounts payable $45,500 $40,000 Income taxes payable 4,000 6,100 Salaries and wages payable 8,000 3,900 Short-term loans payable 8,000 9.900 Long-term loans payable 59.400 68.800 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 57,500 36,000 Total liabilities & stockholders' equity $312,400 $294,700 WILDHORSE INC. INCOMESTATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $337,300 Cost of goods sold 174,000 Gross profit 163,300…
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9. Which of the following is recorded upon receipt of a payment on April 7, 2021, by a customer who pays a $900 invoice dated March 3, 2021, with terms 2/10, n/60? A. Debit Sales Discounts $18. B. Credit Purchase Discounts $18. C. Credit Accounts Receivable $882. D. Debit Cash $900.