Wages and salaries are expected to be $2,304,000 per annum and will be paid monthly. x) In the month of August, furniture & fixtures, which cost $455,000, will be sold to an employee at a loss of $20,000. Accumulated depreciation on the furniture & fixtures at that time is expected to be $305,000. The employee will be allowed to pay a deposit equal to 60% of the selling price in August with the balance settled in two equal amounts in September & October. xi) As part of its investing activities, the management of Sallat Household Furnishings & Appliances is in the process of completing a major addition to the business property, which is estimated to cost $1,200,000, and which is being funded by external borrowing. $420,000 of the principal, along with interest of $14,200 is due to be paid on July 15, 2022.
ix) Wages and salaries are expected to be $2,304,000 per annum and will be paid monthly.
x) In the month of August, furniture & fixtures, which cost $455,000, will be sold to an
employee at a loss of $20,000.
time is expected to be $305,000. The employee will be allowed to pay a deposit equal to
60% of the selling price in August with the balance settled in two equal amounts in
September & October.
xi) As part of its investing activities, the management of Sallat Household Furnishings &
Appliances is in the process of completing a major addition to the business property, which
is estimated to cost $1,200,000, and which is being funded by external borrowing. $420,000
of the principal, along with interest of $14,200 is due to be paid on July 15, 2022.
xii) The cash balance on September 30, 2022, is expected to be an overdraft of $147,500.
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