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

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Problem 12: Miss Paki Poot, the bookkeeper of "Mura Lang Bavad Enterprises" has reported the balances of the following accounts on December 31, 2020 at the end of its accounting period. (Gross profit rate is 15% base on sales) Sales Purchases 634,000 478,000 339,000 P Merchandise Inventory, end (physical count) Accounts Receivable 150,000 During your conduct of the cut-off test, you gathered the following information: Transactions related to Sales Date Items 1. Shipped Received Jan. 1, 2021 Jan. 1, 2021 Remarks Terms F.O.B Shipping Point F.O.B Destination F.O.B Shipping Point F.O.B Destination Dec. 31, 2020 Dec. 25, 2020 Dec. 30, 2020 Dec. 30, 2020 Amount 6,000 Recorded as sales in January 15,000 Recorded as sales in December 10,000 20,000 Not recorded as sales in December 25,000 Recorded as sales in December 9,000 Recorded as sales in January 2. 3. Dec. 31, 2020 Recorded as sales in December 4. Jan. 2, 2021 Jan. 4, 2021 Jan. 1, 2021 Transactions related to Purchases 5. F.O.B…
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?
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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
View Policies Show Attempt History Current Attempt in Progress Sarasota Limited had net sales in 2023 of $2.3 million. At December 31, 2023, before adjusting entries, the balances in selected accounts were as follows: Accounts Receivable $236,900 debit; Allowance for Expected Credit Losses $2,300 credit. Assuming Sarasota has examined the aging of the accounts receivable and has determined the Allowance for Expected Credit Losses should have a balance of $29,700, prepare the December 31, 2023 journal entry to record the adjustment to Allowance for Expected Credit Losses. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media Debit Credit
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QUESTION 12. Che balances on certain accounts of ANNEY LTD CO as at 1 April 2012 were as follows. (all fīgures in TZS) At the beginning of the year Rent and rates payable Accruals • Prepayments Rent receivable- prepayments 625,000 2200,000 1940,000 During the year, the business carried out the following transactions Paid rent by cheque Paid rates by cheque Received cheque for rent 5200,000 3050,000 960,000 At the end of the year, Rent and rates payable Accruals 2370,000 Prepayments 1880.000 Rent receivable- prepayments 6s0,000 Required: prepare a) Rent and rates account b) Rent receivable ci Show the amount to be transferred to the income statement -oםםב Dool
bled: Assignment 1 i Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $142,500 and sales of $1,115,000. If uncollectible accounts are estimated to be 0.9% of sales, what is the amount of the bad debts expense adjusting entry? Multiple Choice $10,035 $8,990 $11,080
there Stal Exercise 12.1I A firm commenced business on 1 January 201o selling for cash and on credit. In the course of operations in 2012 and 2013 it was found necessary to write off debts as shown below: Date customer Amount written off 31 March 2012 Sena Abossey GH¢3,500 30 June 2012 Agnes Ayum GH¢4,600 30 September 2012 30 April 2013 Kofi Anaba GH¢3,800 Jojo Amadi GHE1,500 31 July 2013 Serwaa Akoto GHe 500 31 October 2013 Yaa Agoe GH¢ 300 On 31 December, 2012 and 2013 the balances on the Accounts receivable were GHe 255,000 and GHe320,00o respectively. The firm's policy was to make a provision for doubtful debts of 15% on the accounts receivable balance as at 31 December each year. You are required to prepare: i. The bad debts account for the two years ii. The provision for doubtful debts accounts for the two years and show thefinancial position extracts for the two years. Exercise 12.2 a. Differentiate between Bad debt and provision for bad dets b. Explain why provision for…
Book Hint Ask Print References Mc Graw Hill % 5 At December 31, Folgeys Coffee Company reports the following results for its calendar year. $908,000 308,000 Cash sales Credit sales Its year-end unadjusted trial balance includes the following items. T Accounts receivable Allowance for doubtful accounts Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1 total sales and (3) 6% of year-end accounts receivable. View transaction list Journal entry worksheet prt sc ← ] delete backspace home num lock
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ASSIMILATION · ABM Company POST-CLOSING TRIAL BALANCE Dec. 31, 2016 Accounts Cash in Bank Petty Cash Fund Account Receivable Allowance for Bad debts Notes Receivable Merchandise Inventory Prepaid Expenses Furniture Acc. Dep. - Furniture Transportation Equipment Acc. Dep.- Transpo Equipment Accounts Payable Notes Payable-Non Current SSS, Philhealth, HDMF Payable Withholding Taxes Payable Accrued Expenses Pinky Ramos, Capital TOTAL Debit 123,153 10,000 659,340 132.200 774,307 3,200 900,000 1,400,000 4,002,200 P Requirement 2: Prepare Statement of Financial Position as of Dec. 31, 2016. A Account Form B. Report Form Credit 15,000 45,000 140,000 960,300 234,000 4,000 2.600 1,300 2,600,000 4,002,200