The following balances were extracted from the books of Good, Gooder & Goodest Limited at December 31, 2021: Balances at December 31, 2021 Sales 138,078 Purchases 82,350 Carriage 5,144 Drawings 7,800 Rent, Rates & Insurance 6,622 3,001 Postage and Stationery Advertising 1,330 Salaries and Wages 26,420 Bad Debts 877 Allowance and Doubtful Debts 130 Accounts Receivable 12,120 Accounts Payables 6,471 Cash in Hand 177 Cash at Bank 1,002 Inventory at January 1, 2021 11,927 Equipment at cost 58,000 Accumulated Depreciation at January 1, 2021 19,000 Capital 53,091 Total 433.550 The following additional information at December 31, 2021 is available: a) Rent is accrued by $210 b) Rates have been prepaid by $880 c) $2,211 of Carriage represents carriage inwards on purchases d) Equipment is to be depreciated at 15% per annum using straight line method e) The allowance for doubtful debts to be increased by $40 f) Inventory at the close of business has been valued at $13,551 Required: 1) From the balances totalling $433,550 prepare a Trial Balance for the company clearly showing debits and credits. (Note all balances should be posted on the side that it is normal for it to have balance b/d. Example Cash at bank is a debit balance. 2) Prepare Income Statement for the year ending December 31, 2021 3) Prepare Balance Sheet at December 31, 2021.
The following balances were extracted from the books of Good, Gooder & Goodest Limited at December 31, 2021: Balances at December 31, 2021 Sales 138,078 Purchases 82,350 Carriage 5,144 Drawings 7,800 Rent, Rates & Insurance 6,622 3,001 Postage and Stationery Advertising 1,330 Salaries and Wages 26,420 Bad Debts 877 Allowance and Doubtful Debts 130 Accounts Receivable 12,120 Accounts Payables 6,471 Cash in Hand 177 Cash at Bank 1,002 Inventory at January 1, 2021 11,927 Equipment at cost 58,000 Accumulated Depreciation at January 1, 2021 19,000 Capital 53,091 Total 433.550 The following additional information at December 31, 2021 is available: a) Rent is accrued by $210 b) Rates have been prepaid by $880 c) $2,211 of Carriage represents carriage inwards on purchases d) Equipment is to be depreciated at 15% per annum using straight line method e) The allowance for doubtful debts to be increased by $40 f) Inventory at the close of business has been valued at $13,551 Required: 1) From the balances totalling $433,550 prepare a Trial Balance for the company clearly showing debits and credits. (Note all balances should be posted on the side that it is normal for it to have balance b/d. Example Cash at bank is a debit balance. 2) Prepare Income Statement for the year ending December 31, 2021 3) Prepare Balance Sheet at December 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following balances were extracted from the books of Good, Gooder & Goodest Limited at
December 31, 2021:
Balances at December 31, 2021
Sales
138,078
Purchases
82,350
Carriage
5,144
Drawings
7,800
Rent, Rates & Insurance.
6,622
3,001
Postage and Stationery
Advertising
1,330
Salaries and Wages
26,420
Bad Debts
877
Allowance and Doubtful Debts
130
Accounts Receivable
12,120
Accounts Payables
Cash in Hand
6,471
177
Cash at Bank
1,002
Inventory at January 1, 2021
11,927
Equipment at cost
58,000
Accumulated Depreciation at January 1, 2021 19,000
Capital
53,091
Total
433.550
The following additional information at December 31, 2021 is available:
a) Rent is accrued by $210
b) Rates have been prepaid by $880
c) $2,211 of Carriage represents carriage inwards on purchases
d) Equipment is to be depreciated at 15% per annum using straight line method
e) The allowance for doubtful debts to be increased by $40
f) Inventory at the close of business has been valued at $13,551
Required:
1) From the balances totalling $433,550 prepare a Trial Balance for the company clearly
showing debits and credits. (Note all balances should be posted on the side that it is
normal for it to have balance b/d. Example Cash at bank is a debit balance.
2) Prepare Income Statement for the year ending December 31, 2021
3) Prepare Balance Sheet at December 31, 2021.
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