Answered: The following trial balance was taken… | bartleby

The following trial balance was taken from the books of Dumbo Trading at 31 December 2021. Dumbo Trading Trial Balance as at 31 December 2021 RM RM Capital Drawings 131,789 227,836 30,380 Cash and bank Sales 1,472,940 Purchases 760,760 Accounts receivable 162,400 Accounts payable Inventory Carriage outwards Carriage inwards 98,700 65,870 7,805 5,880 Returns inwards 34,300 Returns outwards 26,040 Salaries and wages 292,600 Sundry expenses Rent (10 months) Motor vehicle expenses 2,230 47,600 6,380 Accumulated depreciation-Fixtures and fittings 1,596 Accumulated depreciation-Motor vehicle Fixtures and fittings 20,160 6,384 Motor vehicle 100,800 Total 1,751,225 1,751,225

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Additional information:

• Inventory as at 31 December 2021 amounted to RM79,030.
• Dumbo Trading is still owing rent expense for November to December 2021 which has not been amended in the book.
• The depreciation for fixture and fittings is charged at 25% per annum calculated at monthly basis using the straight-line depreciation method.
• The depreciation for motor vehicle is charged at 20% per annum calculated at monthly basis using the reducing balance method.
• Out of RM3,000 salary and wages, RM500 should be sundry expenses and RM2,500 should be motor vehicle expenses respectively. These have yet to be adjusted.

Required:

a) Prepare the Statement of Comprehensive Income for the year ended 31 December 2021.

b) Prepare the Statement of Financial Position as at 31 December 2021.

The following trial balance was taken from the books of Dumbo Trading at 31
December 2021.
Dumbo Trading
Trial Balance as at 31 December 2021
RM
RM
Capital
Drawings
131,789
227,836
Cash and bank
30,380
Sales
1,472,940
Purchases
760,760
Accounts receivable
162,400
Accounts payable
Inventory
Carriage outwards
Carriage inwards
98,700
65,870
7,805
5,880
34,300
Returns inwards
Returns outwards
26,040
Salaries and wages
292,600
2,230
Sundry expenses
Rent (10 months)
Motor vehicle expenses
47,600
6,380
Accumulated depreciation-Fixtures and fittings
1,596
Accumulated depreciation-Motor vehicle
Fixtures and fittings
20,160
6,384
Motor vehicle
100,800
Total
1,751,225
1,751,225

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Blurred answer

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Castro Industries purchased $21,600 of merchandise on February 1, 2020, subject to a trade discount of 5% and with credit terms of 2/15, n/60. It returned $5,000 (gross price before trade or cash discount) on February 4. Castro paid one-half of the outstanding obligation on February 13. The remaining amount was paid 60 days after the date of purchase. Prepare the journal entries Castro would make for the purchase, the return, and the two payments using (1) the gross method and (2) the net method. Castro uses a periodic inventory system.
Quimby Sports Authority purchased inventory costing $30,000 by signing a 6% short-term, one-year note payable. The purchase occurred on July 31, 2021. Quimby pays annual interest each year on July 31. Read the requirements. First, journalize the company's (a) purchase of inventory. (Record debits first, then credits Exclude explanations from journal entries.) Journal Entry Jul Date 2021 31 Accounts Print Debit Requirements Joutnalize the company's (a) purchase of inventory; (b) accrual of interest expense on April 30, 2022, which is the company's fiscal year-end; and (c) payment of the note plus interest on July 31, 2022. (Round your answers to the nearest whole number) (d) Show what the company would report for liabilities on its balance sheet at April 30, 2022, and on its income statement for the year ended on that date Done - X Credit Clear all Check answer
On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment note requiring payment of $21,500 annually for five years. The first payment was made on January 1, 2021. The prevailing rate of interest for this type of note at date of issuance was 10%. Glanville should record sales revenue in January 2021 of: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $107,500 $81,502 $89,652 None of these answer choices are correct.

Recommended textbooks for you

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS