QUESTION TwoGIANTS, a sole trader extracted the following trial balance from herbooks at the close of business on 31st December, 2016:DrCrGHCGHCPurchases and sales61,420127,245Inventory 1 January, 2016Capital 1 January, 201625,200Bank overdraft2,490CashDiscounts7,9401402,48062Returns3,4861,356Carriage outwardsRent and insuranceAllowance for doubtful debts3,2108,870630Fixtures and fittingsVanAccounts receivable and trade payableDrawingsWages and salaries1,9005,60012,41821,40039,20011,4006General office expenses319168,383168,383Additional information:(a) Inventory 31st December, 2016 GHC 6,805(b) Wages and salaries accrued at 31st December, 2016 GH¢ 3,50%3;Office expenses GHC 16(c) Rent prepaid 31st December, 2016 GHC 600(d) Increase in allowance for doubtful debts by GHC 110 to GHC 740(e) Provide for depreciation as follows: Fixtures and fittings GH¢ 190and Van GH¢ 1,400 5 0.0K/s O .l049% 10:16 PMDone7Required:a) Prepare the income statement for the year ending 31st December,2016b) Prepare statement of financial position as 31 December 2016c) Explain four accounting concepts and indicate where they areapplicable in the income statement and statement of financial positionyou have prepare under questions a and bịQUESTION THREEYour uncle, Mr. Mensah is a sole proprietor dealing in building materialsin Accra. His friend, Kofi Manu has convinced him to convert his soleproprietorship business into a limited liability company. Just last weekyour Uncle wanted a loan facility from a bank and the bank asked him toiancial statements in addition to other documents.Full text: 11146 nition of financial accounting and financialle wants you to help him understand certain issuesin accounting.Aa E

Statement of Financial Position - It is also known as a Balance Sheet which represents the assets,…

QUESTION TWO GIANTS, a sole trader extracted the following trial balance from her books at the close of business on 31st December, 2016: Dr GHC Cr GHC Purchases and sales 61,420 127,245 Inventory 1 January, 2016 Capital 1 January, 2016 25,200 Bank overdraft 2,490 Cash 7,940 140 Discounts 62 Returns 2,480 3,486 1,356 Carriage outwards Rent and insurance 3,210 8,870 Allowance for doubtful debts 630 Fixtures and fittings 1,900 5,600 12,418 21,400 39,200 Van Accounts receivable and trade payable Drawings Wages and salaries 11,400

QUESTION TWO GIANTS, a sole trader extracted the following trial balance from her books at the close of business on 31st December, 2016: Dr GHC Cr GHC Purchases and sales 61,420 127,245 Inventory 1 January, 2016 Capital 1 January, 2016 25,200 Bank overdraft 2,490 Cash 7,940 140 Discounts 62 Returns 2,480 3,486 1,356 Carriage outwards Rent and insurance 3,210 8,870 Allowance for doubtful debts 630 Fixtures and fittings 1,900 5,600 12,418 21,400 39,200 Van Accounts receivable and trade payable Drawings Wages and salaries 11,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Accounts Receivable $67,000 Allowance for Doubtful Accounts 1,300 (credit) During 2016, sales on credit amounted to $582,000, $552,800 was collected on outstanding receivables and $2,600 of receivables were written off as uncollectible. On December 31, 2016, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Shelton’s estimate of bad debt expense for 2016. 2. Prepare the Accounts Receivable section of Shelton’s December 31, 2016, balance sheet. 3. Compute Shelton’s receivables turnover. (Round to one decimal place.) 4. If Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2?
US Kiumel, finamclal Accounting, Se Hele I Syotem Aenouncements CALLAT Briel Exercise 8-11 he 20117 financial staternents of 3M Company report net sales of $25.3 billion. Accounts receivable (net) are $3.00 billion at the beginning of the year and $3.24 billion at the cde Compute 3M Company's receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.) Accounts receivable turnover ratio times SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL Compute 3M Company's average collection period for accounts receivable in days. (Round answer to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Average collection period days Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT INTERACTIVE TUTORIAL Question Attempts: 0 of 3 usec
rr
vi.3
hsl.1
Haradev
Instructions The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. Apr. Jun. Jul. Aug. Dec. 1 Purchased merchandise on account from Kirkwood Co., $390,000, terms n/30. 31 Issued a 30-day, 10% note for $390,000 to Kirkwood Co., on account. 30 Paid Kirkwood Co. the amount owed on the note of March 31. 1 Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 8% note. 1 Purchased tools by issuing a $216,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. 16 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. 1 Purchased equipment from Greenwood Co. for $500,000, paying $150,000 cash and issuing a series of ten 8% notes for $35,000 each, coming due at 30-day intervals. Settled a product liability lawsuit with a customer for $310,000, payable in January. Accrued the loss in a litigation claims payable account. Paid the amount due…
Provide correct answer for this question