Q4. A business prepares its financial statements for the year to 31 October.It pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October each year.The annual rent was increased from £48,000 to £60,000 from 1 March 2021.●Compute the amount to recognise for rent in the financial statements for the year ended 31October 2021?a) in the statement of profit or loss?b) in the statement of financial position?c)If at the start of the year there was an opening rent prepayment of £8,000, show how thetransaction for the year would be reflected in the accounting equation.Use the template on Moodle to show which elements of the accounting equation areaffected by entering the amount and a +/- sign to denote the increase/ decrease+ Expenses = Opening capital + Income + LiabilitiesAssets

Accounting System - A technique used by accountants to manage and keep track of transactions…

Q4. A business prepares its financial statements for the year to 31 October. It pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was increased from £48,000 to £60,000 from 1 March 2021. ● ● Compute the amount to recognise for rent in the financial statements for the year ended 31 October 2021? a) in the statement of profit or loss? b) in the statement of financial position?

Q4. A business prepares its financial statements for the year to 31 October. It pays rent quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was increased from £48,000 to £60,000 from 1 March 2021. ● ● Compute the amount to recognise for rent in the financial statements for the year ended 31 October 2021? a) in the statement of profit or loss? b) in the statement of financial position?

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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Question 6. A credit sale of $750 is made on 13 June, terms 2/7, n/30, on which a return of $50 is granted on 16 June. The customer paid the amount owing on 17 June. What amount will the customer pay? a) $700 b) $686 c) $685 d) $650
Financial information of Barnes Ltd, a furniture maker, for the year ended 31st December 202X as follow: Notes: Capital Cash at Bank Account Machinery Provision for depreciation - Warehouse Plant and buildings Provision for depreciation - Machinery Stock at 1st Jan 202X Purchases Sales Trade debtors Trade creditors Selling and distribution expenses Provision for doubtful debts at 1st Jan 202X Administrative expenses Bank loan to be repaid in 2025 Operating expenses Interest Returns inward Returns outward Total Debit 3,000 120,000 100,000 14,500 22,000 20,000 18,450 5,300 12,750 10,000 2,000 Credit 100,000 1. Stock at 31st December 202X £16,700. 2. Operating expenses £2,000 accrued. 3. Selling and administrative expenses £4,500 prepaid. 4. Provision for doubtful debts adjusted to 7% of debtors. 5. Warehouse and machinery to be depreciated at 10% straight-line method. 20,000 15,000 105,000 16,750 3,200 65,300 2750 328,000 328,000 a) Prepare an Income Statement for Barnes Ltd for the year…
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a) Prepare Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020 b) Prepare the Statement of Financial Position on as at 30 June 2020.
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