The following balances have been taken from the ledger account of Cristiano and Sons on December 31, 2018, the close of their financial year. Debit Balances Credit Balances Cash 5,000 Sales 68,000 A/c Receivable 10,000 Purchase Discount 1,000 Inventory (1.1.2018) 8,000 | Commission Income 3,000 Prepaid Shop Rent 5,000 Accounts Payable 6,000 Equipment 30,000 Capital 30,000 Purchases 24,000 Carriage-in 500 Advertising Expenses 2,500 Mise. Expenses 1.500 Office Supplies Expenses 2,000 Delivery Expenses 500 Salaries Expenses 18,000 Sales Return 500 Allowance for Bad Debts 500 Total 108,000 Total 108,000 Data for Adjustments: a) Prepaid Shop rent was Rs. 1,000. b) Office supplies unused Rs. 400. c) Allowance for Bad Debts was estimated at Rs. 2,000. d) Salaries outstanding Rs. 5,000. e) Allowance for depreciation was estimated at Rs. 2,000. n Commission unearned Rs. 1,000. g) Inventory was valued on 31.12.2018 at Rs. 10,000. Required: • Prepare Income statement and balance sheet for the financial year of 2018.
The following balances have been taken from the ledger account of Cristiano and Sons on December 31, 2018, the close of their financial year. Debit Balances Credit Balances Cash 5,000 Sales 68,000 A/c Receivable 10,000 Purchase Discount 1,000 Inventory (1.1.2018) 8,000 | Commission Income 3,000 Prepaid Shop Rent 5,000 Accounts Payable 6,000 Equipment 30,000 Capital 30,000 Purchases 24,000 Carriage-in 500 Advertising Expenses 2,500 Mise. Expenses 1.500 Office Supplies Expenses 2,000 Delivery Expenses 500 Salaries Expenses 18,000 Sales Return 500 Allowance for Bad Debts 500 Total 108,000 Total 108,000 Data for Adjustments: a) Prepaid Shop rent was Rs. 1,000. b) Office supplies unused Rs. 400. c) Allowance for Bad Debts was estimated at Rs. 2,000. d) Salaries outstanding Rs. 5,000. e) Allowance for depreciation was estimated at Rs. 2,000. n Commission unearned Rs. 1,000. g) Inventory was valued on 31.12.2018 at Rs. 10,000. Required: • Prepare Income statement and balance sheet for the financial year of 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Handwritten solution required
Transcribed Image Text:The following balances have been taken from the ledger account of Cristiano and Sons on December 31,
2018, the close of their financial year.
Debit Balances
Credit Balances
Cash
5.000 Sales
68,000
A/c Receivable
10,000 Purchase Discount
1,000
Inventory (1.1.2018)
8,000 Commission Income
3,000
Prepaid Shop Rent
5,000 Accounts Payable
6,000
Equipment
30,000 Capital
30,000
Purchases
24,000
Carriage-in
500
Advertising Expenses
2,500
Misc. Expenses
1.500
Office Supplies Expenses
2,000
Delivery Expenses
500
Salaries Expenses
18.000
Sales Return
500
Allowance for Bad Debts
500
Total
108,000 Total
108,000
Data for Adjustments:
a) Prepaid Shop rent was Rs. 1,000.
b) Office supplies unused Rs. 400.
c) Allowance for Bad Debts was estimated at Rs. 2,000.
d) Salaries outstanding Rs. 5,000.
e) Allowance for depreciation was estimated at Rs. 2,000.
n Commission unearned Rs. 1,000.
g) Inventory was valued on 31.12.2018 at Rs. 10,000.
Required:
• Prepare Income statement and balance sheet for the financial year of 2018.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education