Selected data and add1t1onal 1nformat1on from the company's records are presented below     Balance Sheet Data   Cash 2014 R235,000 2013 R246,000   Accounts receivable R120,000 R150,000   Inventories 56,000 50,000   Accounts payable 38,000 70,000   Salaries payable 10,000 5,000   Equipment 110,000 70,000   Accumulated deprec1at1on 28,000 32,000   Bonds payable 100,000 200,000   Common stock 300,000 200,000   Retained earnings 76,000 40,

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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Mary Kay Cosmetics

Selected data and add1t1onal 1nformat1on from the company's records are presented below

 

 

Balance Sheet Data

 

Cash

2014

R235,000

2013

R246,000

 

Accounts receivable

R120,000

R150,000

 

Inventories

56,000

50,000

 

Accounts payable

38,000

70,000

 

Salaries payable

10,000

5,000

 

Equipment

110,000

70,000

 

Accumulated deprec1at1on

28,000

32,000

 

Bonds payable

100,000

200,000

 

Common stock

300,000

200,000

 

Retained earnings

76,000

40,000

 

 

 

Income Statement Data

 

 

Net sales Cost of goods sold

2014

R920,000 700,000

 

Operating expenses (excluding depreciation expense)

160,000

Net income (Includes depreciation expense and gain)

56,000

Gain on sale of equipment

4,000

 

 

Additional Information: 
  • Equipment with a cost of R30,000 and a book value of R18,000 was sold for R22,000 during 2014
  • Ordinary shares were issued to retire bonds payable during 2014
  • The only items affecting retained earnings m 2014 were net income and d1v1dends declared and paid

 

Required:
  1. What amount of cash was collected from customers during 2014? (3)
  2. What Is the amount paid to suppliers for purchases of merchandise during 2014? (3)

 

 

  1. What 1s the amount paid for operating expenses during 2014? (3)
  2. What amount was paid to acquire equipment during 2014? (3)
  3. What amount was recorded as deprec1at1on expense during 2014? (3)
  4. What amount was declared and paid for dIvIdends during 2014? (3)

 

 

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