When do we use the Income Summary Account? OA. At the beginning of the financial year to close net income/net loss O B. At the end of the financial year to close net income/ net loss OC. At the end of the financial year to close gain/loss O D. At the beginning of the financial year to close gain/loss

When do we use the Income Summary Account? OA. At the beginning of the financial year to close net income/net loss O B. At the end of the financial year to close net income/ net loss OC. At the end of the financial year to close gain/loss O D. At the beginning of the financial year to close gain/loss

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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If income is earned during a financial year but not yet received, which of the following will be reflected in the financial statements? OA. Income and Liabilities will increase O B. Income and Assets will increase OC. Income and Liabilities will decrease. O D. Income and Assets will decrease Previous page Type here to search
Blyth Traders are a well-established wholesale business operating in the north of England and south Scotland. Their trial balance for year ended 31st December 2021 is presented below: Dr [£] Cr [£] Non-current assets (cost): Plant and machinery 150,000 Vehicles 100,000 Premises 600,000 Accumulated depreciation (1-1-21): Plant and equipment 90,000 Vehicles 50,000 Premises 96,000 Sales 829,000 Sales returns 2,000 Purchases 335,000 Carriage in Wages and salaries Discounts allowed 15,000 114,000 4,500 Electricity costs Vehicle maintenance 37,500 2,500 8,000 Advertising and marketing 14,000 Irrecoverable debts 3,000 Allowance for receivables 1,500 Bank 19,200 Accounts payable 31,600 Accounts receivable 60,000 Inventory (1-1-21) Drawings Bank loan [10%] Capital (1-1-21) 91,700 60,000 150.000 324,900 1,594,700 1,594,700 Additional notes: 1) Inventory at 31st December 2021 was valued at £94,000. However, on 4th January 2022 additional lines of inventory were uncovered that had not been…
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Blyth Traders are a well-established wholesale business operating in the north of England and south Scotland. Their trial balance for year ended 31" December 2021 is presented below: Dr [E] Cr (E] Non-current assets (cost): Plant and machinery 150,000 Vehicles 100,000 Premises 600,000 Accumulated depreciation (1-1-21): Plant and equipment Vehicles 90,000 50,000 Premises 96,000 Sales Sales returns Purchases Carriage in Wages and salaries Discounts allowed Electricity costs Vehicle maintenance Advertising and marketing Irrecoverable debts 829,000 2,000 335,000 15.000 114.000 4.500 37.500 8,000 2,500 14,000 3,000 Allowance for receivables Bank 1,500 19,200 Accounts payable Accounts receivable 31,600 60,000 Inventory (1-1-21) 91,700 Drawings Bank loan [10%] Capital (1-1-21) 60,000 150.000 324,900 1.594.700 1.594.700 Additional notes: 1) Inventory at 31" December 2021 was valued at £94,000. However, on 4th January 2022 additional lines of inventory were uncovered that had not been included…
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