16:42 PPOA N l 18%!Required Class RMary onlinerch 20X9 her withPrepare thbalance seed09:5628.11 This question also relates to extended trial balances (see Exhibit 28.2)From the following trial balance of John Brown, store owner, prepare a trading account and profitand loss account for the year ended 31 December 20X7, and a balance sheet as at that date, takinginto consideration the adjustments shown below:Trial Balance as at 31 December 20x7DrSalesPurchasesSales returns400,000350,0005,000Purchases returns6,200Opening stock at 1 January 20x7Provision for doubtful debts100,000800Wages and salariesRatesnatesTelephoneShop fittings at costVan at cost30,00060001,00040,00030,0009,800Debtors and creditorsBad debts7,000200CapitalBank balance179,0003,000Drawings18,000593,000593,000) Closing stock at 31 December 20X7 £120,000.(ii) Accrued wages £5,000.(i) Rates prepaid £500.(iv) The provision for doubtful debts to be increased to 10 per cent of debtors.() Telephone account outstanding £220.(vi) Depreciate shop fittings at 10 per cent per annum, and van at 20 per cent per annum, on cost.28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a soletrader.Trial Balance as at 31 May 20X6DrCrSalesPurchases138,07882,3505,144CarriageDrawingsRent, rates and insurancePostage and stationeryAdvertisingSalaries and wages7,80066223,0011,33026,420877Bad debts333Part 4 • Adjustments for financial statementsProvision for doubtful debts130Debtors12,120CreditorsCash in handCash6,471177at bankStock as at 1 June 20X5Equipment1,00211,927at cost58,000accumulated depreciationCapital19,00053,091216,770216,770The following additional information as at 31 May 20X6 is available:(a) Rent is accrued by £210.(b) Rates have been prepaid by £880.(d £2,211 of carriage represents carriage inwards on purchases.(d) Equipment is to be depreciated at 15% per annum using the straight line method.(e) The provision for doubtful debts to be increased by £40.() Stock at the dose of business has been valued at £13,551.Required:Prepare a trading and profit and loss account for the year ended 31 May 20X6 and a balance sheetas at that date.(Association of Accounting Technicians)28.13 Mrbalances has Un extracted from his ledofinandal uearhas been trading for som ye irs as a wine merchant. The following list ofat 30 April 20X7, the end ofis most recent

The P&L statement tells about the profits and losses earned by the business. The balance sheet…

Sales Purchases Sales returns Purchases returns 400,000 350,000 5000 6,200 Opening stock at 1 January 20X7 Provision for doubtful debts Weges and salaries Rates 100,000 800 Telephone Shop fittings at cost Van at cost Debtors and creditors Bad debts 30,000 6,000 1,000 40,000 30,000 9,800 7,000 200 Capital Bank balance 179,000 3,000 18,000 593,000 Drawings 593,000

Sales Purchases Sales returns Purchases returns 400,000 350,000 5000 6,200 Opening stock at 1 January 20X7 Provision for doubtful debts Weges and salaries Rates 100,000 800 Telephone Shop fittings at cost Van at cost Debtors and creditors Bad debts 30,000 6,000 1,000 40,000 30,000 9,800 7,000 200 Capital Bank balance 179,000 3,000 18,000 593,000 Drawings 593,000

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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Dr. Cr. Accounts Receivable $ 165,800 Allowance for Doubtful Accounts $ 3,730 Sales Revenue (all on credit) 840,900 Sales Returns and Allowances 52,650 Prepare the journal entry to record bad debt expense assuming Novak Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $ 1,380 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) enter an account title ? ? Allowance for doubtful accounts ? ? (b) enter an account title ? ? enter an account title ? ?
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Based on the information: Credit sales - P 172,000 credit Collections on accounts receivable during the year - P170,000 credit Cash sales - 810,000 credit Unadjusted balance in Allowance for doubtful accounts - 50 debit Sales returns and allowances for credit sales - 4,000 debit Accounts receivable, beginning of the year - 14,000 debit If bad debts are estimated to be 1 1/2% of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: a. P 230 b. P 180 c. P 130 d. P 190
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Problem 1. The following pertains to the financial records of SinoTrump Company: Sales Month January February March P30.000 P40,000 P50,000 Purchases P16.000 P20.000 P28.000 Additional information: a. Cash is collected from customers in the following manner: Month of sale 30% 70% Month following the sale b. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. c. Labor costs are 20% of sales. Other operating cost are P15,000 per month (including P4.000 depreciation expense). Both of these are paid in the month incurred. d. The cash balance on March 1 is P4,000. A minimum cash balance of P3,000 is required at the end of the month. e. A standby credit is available and money can be borrowed in multiples of P1.000. Requirements: 1. Cash collections from customers in March. 2. Cash paid to suppliers in March. 3. Total cash disbursement in March. 4. Ending cash balance for March.
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