Please help me to solve this problem QUESTION ONEMichael and Pumela are partners in MP Stationers. The list of balances as at 30 June 2021, beforeadditional information was taken into account, is as follows:DescriptionOffice furniture and equipmentAccumulated depreciation on office furniture and equipmentInventoryBankDebtors controlAllowance for credit lossesLong-term loanCreditors controlCapital: Michael as at 1 July 2020Capital: Pumela as at 1 July 2020Current account: Michael as at 1 July 2020 - debitCurrent account: Pumela as at 1 July 2020 - creditDrawings: Michael - taken during the yearDrawings: Pumela - taken during the yearProfit for the year1.2.3.Additional information:On 1 July 2020 Michael increased his capital to R150 000. The increase was charged to thepayables account in error.4.5.6.7.Amount530 00072 000568 4201 350 800364 56019 480456 300451 200100 000150 0006 500Required:1.1 Prepare the current account of Michael as at 30 June 2021.1.2 Prepare the statement of changes in equity as at 30 June 2021.10 50040 00050 0001 650 800Michael earns a salary of R5 000 per month while Pumela earns R6 500 per month.The total salaries paid to Pumela was incorrectly recorded in the debtors control account. Thesalaries paid to Michael was correctly accounted.Interest of 14% per year must be provided for on the capital.Interest on current accounts must be provided at 8 % per year on the opening balances.Interest of 5% is charged on the drawings.The partners share profits and losses in the ratio of capital contributed at the start of thefinancial year.

While making accounts of partnerships, there are two separate accounts current account and capital…

Answered: Required: 1.1 Prepare the current…

Required: 1.1 Prepare the current account of Michael as at 30 June 2021. 1.2 Prepare the statement of changes in equity as at 30 June 2021.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 5CP

See similar textbooks

Similar questions

Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content
Compare the essential features of each financial account statement to analyse the differences between them in terms purpose, structure and content
REQUIRED: (Round all numbers to the nearest RM) a) Prepare all the related journal entries for Glove Bhd for the financial year 2019. b) Briefly discuss whether (i) trade receivable and (ii) bank overdraft fulfill the definition of financial assets.
You are required to prepare a trial balance for Alina, a sole proprietorship as at 31st December 2021 and assess the source and structure of the trial Balance of Alina . The following information should be used to prepare the trial balance. £000 Capital 200 - Source - General ledger Stocks 40 - Source - General ledger Sales 100 - Source - Sales ledger or accounts receivable Cash and cash equivalent 110 - Source - Cash book Bank loan 70 - Source - General ledger Furniture and Fittings 180 - Source - General ledger or nominal ledger Trade Receivables 30 - Source - Sales ledger or receivables ledger Trade Payables 40 - Source - Payable ledger or purchase ledger Wages 50 - Source - General ledger or nominal ledger TASK 2 From the data below please complete a P&L Account Opening Stock - £800,000 Depreciation - £80,000 Advertising expenses - £60,000 Rent - £15,000 Salaries - £56,000 Commission - £5,000 Other expenses - £7,000 Closing…
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
By Balance b/d By Profit and loss adjus- ment A/c 10,600 Teg o 16,000 12,000 10,400 16,600 12,400 10,600 009 16,600 12,400 10,600 Balance Sheet of B and C (as at April 1, 2019) Amount Capital and Liabilities Assets and Properties Amount Creditors Bills Payable Dutstanding Expenses A's Loan A/c 7,900 Bank 1,500 Stock 800 Debtors 16,600 Machinery 1,600 11,200 Land and Buildings 8,800 Capitals: 18,600 12,400 B. 23,000 C. Part 49,800 49,800 Memorandum Revalution Account lustration 8 Om, Jay and Jagdish were partners in a firm. They share profit and loss in the ratio of 4 :4:2. Their Balance Sheet as at 31-3-2019 was as follows : Sundry Creditors Om's loan A/c 99,280 Building 30,000 Furniture Plant 000' 000'08 69,800 74,330 89,150 Capital Accounts : 80,000 Bank Sundry Debtors Jay Jagdish 000'89 000'8L 2,26,000 3,55,280 3,55,280 On 1st April, 2019 Om got his retirement. Building at ? 58,000; Furniture at 7 84,000; Plant at ? O00 were revalued. Total goodwill of the firm is 7 96,000. Om…
Requirement: Journalize the transactions using the ff. accounts: Cash; Accounts Receivable; Equipment; Furniture and Fixtures, Accounts Payable; L. Rosales, Capital; Delivery Revenue; Gas and Oil Expense; Advertising Expense, Rent Expense, Salaries Expenses. Record the journal entries in journal sheets in proper format. The transactions for March 2021 of Lightning Package Delivery Company, owned by Lelong Rosales, are as follow: March 1: Opened the company with initial investment of P536,000 Cash. March 2: Paid P6,000 rent for March on a completely furnished building. March 5: Paid cash for delivery trucks, P220,000. March 9: Paid P2,200 for supplies received. March 12: Performed delivery services for customers P27,000 on account. March 15: Invested additional cash P105,200 March 20: Collected cash of P14,500 from customers on account (see March 12 entry). March 21: Received a bill and paid for P1,200 for advertising in the local newspaper March 27: Paid…
Required Information As of December 31, 2019. Armani Company's financlal records show the following Items and amounts. Cash $11,400 10,400 7,400 6,400 13,8e0 17,400 21,8ee 14,400 35,8ee 24,8ee 21,400 13,400 9,400 Accounts receivable Supplies Equipment Accounts payable A. Armani, Capital, Dec. 31, 2018 A. Armani, Capital, Dec. 31, 2019 A. Armani, Withdrawals Consulting revenue Rental revenue Salaries expense Rent expense Selling and administrative expenses Required: Prepare a year-end balance sheet for Armani Company. ARMANI COMPANY Balance Sheet December 31, 2019 Assets Liabilities Cash Accounts receivable Supplies Equipment 11,400 Accounts payable 10,400 7,400 Total liabilities 13,800 13,800 6,400 A. Armani, Capital Equity 21,800 Total assets 35,600 Total liabilities and equity 35,600
As at Dec. 31, 2019, the accounting records for Catherine Viesca Outdoor Ad Concepts contained the following balances: Effect of Events on Financial Statements PROFESSOR: Problem #6 at Dec. 31, 2019, the accounting records for Catherine Viesca Outdoor Ad Concepts Assets Equities Accounts Payable Cash P180,000 Accounts Receivable 110,000 P 34,000 Land 90,000 P380,000 Viesca, Capital 346,000 P380,000 Total Total The following accounting events apply to 2020: Jan. 1 Received P100,000 additional cash investments from the owner. Purchased a service vehicle that cost P80,000. The vehicle has an P8,000 salvage value and a 3-year useful life. Feb. 1 Borrowed P100,000 by issuing a note that carried a 9% annual 1 interest rate and a 1-year term. Paid P24,000 cash in advance for a 1-year lease for office space. Viesca withdrew P30,000 for emergency personal use. 1 Mar. 1 April 1 Acquired land that cost P70,000 cash. May 1 July 1 Received P42,000 cash in advance as a retainer for services to be…
The following information was taken from the books of Newcastle Enterprises.Balances in the general ledger of Newcastle Enterprises for the financial year ended29 February 2020.Account Fol. Debit(R) Credit(R)Capital: M. Manchester(1 March2019)50 000Capital: L. Liverpool (1 March2019)70 000Current: M. Manchester (1 March2019)18 000Current: L. Liverpool (1 March2019)8 000Drawings: M. Manchester 5 000Drawings: L. Liverpool 4 000Replacement Reserve 65 000Profit and Loss 420 000Property, plant and equipment 670 000Appropriations according to the partnership agreement for the financial year ended29 February 2020:1. Interest on capital must be appropriated at 5% per annum. Capital accountbalances remain constant.2. Interest on drawings must be appropriated at 12% per annum. Assumedrawings were made 3 months prior to the end of the financial year.3. Interest on current accounts must be appropriated at 7% per annum (onopening balances).4. Both partners must receive an annual salary at the end…
Using the information in the information in the image 1) calculate the net amount owed by credit customers on 31 May 2019 2) Explain one reason why the accounts receivable legder control accounts had both a debit and a credit balance
the information in the screenshot we should use to to do the follwoing for year ending sep 30 2020. Trial balance statment lf profit and loss statement of finincial position workings must show workings used to get the trial balance such as the statment of affairs and control accounts. Please avoid solution in image format thank you