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Present the Total Shareholders Equity Section of the Balance Sheet of Simpson Limited at 31 July 2021 Retained Profits at start of period x Adjustment - insert account name x/(x) Adjustment - insert account name x/(x) Retained profits at end of period x Share Capital x Total Shareholders Equity x

Present the Total Shareholders Equity Section of the Balance Sheet of Simpson Limited at 31 July 2021 Retained Profits at start of period x Adjustment - insert account name x/(x) Adjustment - insert account name x/(x) Retained profits at end of period x Share Capital x Total Shareholders Equity x

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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The balance sheet of Simpson Ltd at 30 June 2021 was as follows: Simpson Ltd Balance Sheet as at 30 June 2021 2$ Assets Liabilities Cash 320,000 Accounts payable 151,000 Inventory 126,000 Rent payable 1,500 Accounts Receivable 130,500 Wages payable 5,500 Prepaid Insurance 1,000 Total current liabilities 158,000 Supplies 3.500 Loan 200,500 Total current asset 581,000 Total Liabilities 358,500 Equipment 89,000 Shareholders' Equity Accumulated depreciation (69,500) Share capital 100,000 Total Non-Current Assets 19,500 Retained profits 142,000 Total Assets 600,500 Total Shareholders' Equity 242,000 The following events occurred for Simpson Ltd during the month of July 2021: a) $85,000 of credit sales occurred during the month. This inventory cost Simpson Ltd $45,000 to purchase. b) On July 1st 2021, borrowed $180,000 from the bank. The loan i due on 30 June 2023 when the principal will be repaid in full. The loan carries an interest rate of 8 per cent per annum. An interest payment of $900 was made during the month of July 2021. c) Cash dividends of $6,000 declared of which $1,000 remained outstanding at the end of July. d) Received $15,000 from accounts receivable. e) Bought equipment for $80,000 paying cash on 1 July 2021. The annual rate of depreciation for equipment owned by Simpson Limited increased to $9,000 following this transaction. f) Received $10,000 for inventory to be delivered to a customer on 15 August 2021. g) Paid wages of $20,000 during the month, $5,500 of which were owed for the month of June. $4,000 remained outstanding to employees at the end of July. h) Paid $9,000 rent for the six-month period from 1 June 2021 to 30 November 2021 i) Paid an insurance policy worth $12,000 covering 1 August 2021 to 31 July 2022. Insurance is prepaid each year on 31 July. j) A physical count on 31 July shows that the ending balance of supplies is $2,000
Transcribed Image Text:The balance sheet of Simpson Ltd at 30 June 2021 was as follows: Simpson Ltd Balance Sheet as at 30 June 2021 2$ Assets Liabilities Cash 320,000 Accounts payable 151,000 Inventory 126,000 Rent payable 1,500 Accounts Receivable 130,500 Wages payable 5,500 Prepaid Insurance 1,000 Total current liabilities 158,000 Supplies 3.500 Loan 200,500 Total current asset 581,000 Total Liabilities 358,500 Equipment 89,000 Shareholders' Equity Accumulated depreciation (69,500) Share capital 100,000 Total Non-Current Assets 19,500 Retained profits 142,000 Total Assets 600,500 Total Shareholders' Equity 242,000 The following events occurred for Simpson Ltd during the month of July 2021: a) $85,000 of credit sales occurred during the month. This inventory cost Simpson Ltd $45,000 to purchase. b) On July 1st 2021, borrowed $180,000 from the bank. The loan i due on 30 June 2023 when the principal will be repaid in full. The loan carries an interest rate of 8 per cent per annum. An interest payment of $900 was made during the month of July 2021. c) Cash dividends of $6,000 declared of which $1,000 remained outstanding at the end of July. d) Received $15,000 from accounts receivable. e) Bought equipment for $80,000 paying cash on 1 July 2021. The annual rate of depreciation for equipment owned by Simpson Limited increased to $9,000 following this transaction. f) Received $10,000 for inventory to be delivered to a customer on 15 August 2021. g) Paid wages of $20,000 during the month, $5,500 of which were owed for the month of June. $4,000 remained outstanding to employees at the end of July. h) Paid $9,000 rent for the six-month period from 1 June 2021 to 30 November 2021 i) Paid an insurance policy worth $12,000 covering 1 August 2021 to 31 July 2022. Insurance is prepaid each year on 31 July. j) A physical count on 31 July shows that the ending balance of supplies is $2,000
Present the Total Shareholders Equity Section of the Balance Sheet of Simpson Limited at 31 July 2021 Retained Profits at start of period x Adjustment - insert account name x/(x) Adjustment - insert account name x/(x) Retained profits at end of period x Share Capital x Total Shareholders Equity x
Transcribed Image Text:Present the Total Shareholders Equity Section of the Balance Sheet of Simpson Limited at 31 July 2021 Retained Profits at start of period x Adjustment - insert account name x/(x) Adjustment - insert account name x/(x) Retained profits at end of period x Share Capital x Total Shareholders Equity x
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