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SECTION A Janet Wilson has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for the expansion of the business has necessitated the preparation of the final accounts for the year ended December 31, 2020. She is seeking your help in the preparation of the statements. 1. Janet is able to provide you with the following information about her financial position at January 1, 2020: inventory of furniture $21,420; Trade accounts receivable $20,286; Trade accounts payable $18,196; Buildings $25,200;"Fixtures and Fittings $23,400, building expenses owing $4864, insurance prepaid $ 4,000, bank $8,840 2. Cheques drawn during the year were estimated as follows: 54,843 Trade payables Electricity Telephone 12,180 11,220 Rent 15,500 Advertising & Promotion Fixtures and Fittings 13,360 15,600 Insurance 12,392 Building expenses 14,732

SECTION A Janet Wilson has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for the expansion of the business has necessitated the preparation of the final accounts for the year ended December 31, 2020. She is seeking your help in the preparation of the statements. 1. Janet is able to provide you with the following information about her financial position at January 1, 2020: inventory of furniture $21,420; Trade accounts receivable $20,286; Trade accounts payable $18,196; Buildings $25,200;"Fixtures and Fittings $23,400, building expenses owing $4864, insurance prepaid $ 4,000, bank $8,840 2. Cheques drawn during the year were estimated as follows: 54,843 Trade payables Electricity Telephone 12,180 11,220 Rent 15,500 Advertising & Promotion Fixtures and Fittings 13,360 15,600 Insurance 12,392 Building expenses 14,732

FINANCIAL ACCOUNTING
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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A. Prepare the following for the year ended 31 December 2020 i. Statement of affairs as at january 1 2020 ii. Bank account iii.accounts payable and accounts receivable accounts iv. Income statement V.balance sheet
in Protected View. Enable Editing activated. To keep using Word without interruption, activate before Monday, 17 May 2021. Activate 3. All cash and cheques received were paid into the bank account immediately. Janet estimates the following receipts for the year Cheque received from trade receivables $194,500 Cash Sales $ 32,700 4. Depreciation is to be written-off the buildings at 20% per annum and Fixtures and Fitting at 10 % per annum. 5. At December 31, 2020, building expenses owing was $4,582, and insurance paid in advance was $5,354. 6. Included in the amount paid for Fixtures and fittings were: A table bought for $2,600, which Janet resold during the year at cost, some wooden shelving (cost $1,500), which Janet used in building an extension to her personal garage. 7. Cheque written for personal use during the year amounted to $43,000 8. Other balances at 31 December 31, 2020 were: $4 Trade accounts receivable 23,042 Trade accounts payable 19,890 Inventory of furniture 28,126 T Fosus DO
Transcribed Image Text:in Protected View. Enable Editing activated. To keep using Word without interruption, activate before Monday, 17 May 2021. Activate 3. All cash and cheques received were paid into the bank account immediately. Janet estimates the following receipts for the year Cheque received from trade receivables $194,500 Cash Sales $ 32,700 4. Depreciation is to be written-off the buildings at 20% per annum and Fixtures and Fitting at 10 % per annum. 5. At December 31, 2020, building expenses owing was $4,582, and insurance paid in advance was $5,354. 6. Included in the amount paid for Fixtures and fittings were: A table bought for $2,600, which Janet resold during the year at cost, some wooden shelving (cost $1,500), which Janet used in building an extension to her personal garage. 7. Cheque written for personal use during the year amounted to $43,000 8. Other balances at 31 December 31, 2020 were: $4 Trade accounts receivable 23,042 Trade accounts payable 19,890 Inventory of furniture 28,126 T Fosus DO
om the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing activated To keep using Word without interruption, activate before Monday, 17 May 2021. Activate SECTION A Janet Wilson has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for the expansion of the business has necessitated the preparation of the final accounts for the year ended December 31, 2020. She is seeking your help in the preparation of the statements. 1. Janet is able to provide you with the following information about her financial position at January 1, 2020: inventory of furniture $21,420; Trade accounts receivable $20,286; Trade accounts payable $18,196; Buildings $25,200;"Fixtures and Fittings $23,400, building expenses owing $4864, insurance prepaid $ 4,000, bank $8,840 2. Cheques drawn during the year were estimated as follows: Trade payables 54,843 Electricity 12,180 Telephone 11,220 Rent 15,500 Advertising & Promotion Fixtures and Fittings 13,360 15,600 Insurance 12,392 Building expenses 14,732
Transcribed Image Text:om the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing activated To keep using Word without interruption, activate before Monday, 17 May 2021. Activate SECTION A Janet Wilson has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for the expansion of the business has necessitated the preparation of the final accounts for the year ended December 31, 2020. She is seeking your help in the preparation of the statements. 1. Janet is able to provide you with the following information about her financial position at January 1, 2020: inventory of furniture $21,420; Trade accounts receivable $20,286; Trade accounts payable $18,196; Buildings $25,200;"Fixtures and Fittings $23,400, building expenses owing $4864, insurance prepaid $ 4,000, bank $8,840 2. Cheques drawn during the year were estimated as follows: Trade payables 54,843 Electricity 12,180 Telephone 11,220 Rent 15,500 Advertising & Promotion Fixtures and Fittings 13,360 15,600 Insurance 12,392 Building expenses 14,732
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