Accounting, Chapters 14-26
27th Edition
ISBN: 9781337272117
Author: WARREN, Carl S.; Reeve, James M.; Duchac, Jonathan
Publisher: South-Western College Pub
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Chapter 1, Problem 1.21EX
Financial information related to the proprietorship of Ebony Interiors for February and March 2019 is as follows:
| February 29, 2019 | March 31, 2019 | |
| Accounts payable | $310,000 | $400,000 |
| 800,000 | 960,000 | |
| Cash | 320,000 | 380,000 |
| Justin Berk, capital | ? | ? |
| Supplies | 30,000 | 35,000 |
- a. Prepare balance sheets for Ebony Interiors as of February 29 and March 31, 2019.
- b. Determine the amount of net income for March, assuming that the owner made no additional investments or withdrawals during the month.
- c. Determine the amount of net income for March, assuming that the owner made no additional investments but withdrew $50,000 during the month.
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Prepare a Balance Sheet using the following information for the Ginger Company as of March 31, 2019. When listing accounts for each category, you are to insert them in the order in which they are listed here. If used, type in the account names exactly as
written here.
Account
Normal Balances
Accounts Payable
$1,730
Cash
$11,050
Ginger Ale, Capital March 1
$17,300
Inventory
$8,230
Wages Payable
$2,150
Sales
$13,600
Product Expenses
$8,200
Ginger Ale, Capital March 31
$22,700
Equipment
$7,300
PLEASE NOTE:
When you fill in the dollar amounts, you must include a $ and commas as needed (i.e., $1,234).
Assets:
Total Assets
Liabilities:
Total Liabilities
Owner's Equity:
Total Liabilities and Owner's Equity
Berhad has the following financial statement as at 31 December 2019:
Jiki Berhad
Statement of Financial Position as at 31 December 2019
Assets (RM)
Plant (Net) 4,000,000
Research and Development 16,000,000
Cash 5,400,000
Trade Receivable (Net) 5,400,000
Interest Receivable 800,000
Inventory 2,000,000
Total Assets 33,600,000
Liabilities and Shareholders’ Equity
Trade Payable 5,920,000
Loan Payable 9,300,000
Provision for warranties 300,000
Deferred tax liability 4,200,000
Share Capital 10,380,000
Retained Earnings 3,500,000
Total Liabilities and Shareholders’ Equity 33,600,000
Additional Information:
a) Tax laws allow only specific bad debts. The carrying amount in the trade receivable account is after the provision of 10% provision of doubtful debts.
b) Interest receivable is recorded on accrued basis however is taxable only upon receipt.
c) The carrying amount of the plant is after providing accumulated depreciation of RM 6 million. As at 31…
ll.
Chapter 1 Solutions
Accounting, Chapters 14-26
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