Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 1, Problem 21E
a)
To determine
Prepare balance sheet of Company EI for the February and March.
b)
To determine
Calculate the amount of net income for the month of March, assuming that the owner made no additional investments or withdrawals during the month.
c)
To determine
Calculate the amount of net income for the month of March, assuming that the owner made no additional investments but withdrew $50,000 during the month.
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Displayed here are the draft financial statements which have been prepared for Valerie’s business for the year ended 30 April 2021.
Draft Statement of Financial Position as at 30 April 2021
Assets
Non-current assets
see point a. below
Cost
90,000
Provision for depreciation
30,600
Net Book Value
59,400
Current assets
Inventory
To be advised
Trade receivables
43,200
Cash
4,680
47,880
Total assets
107,280
Liabilities
Current liabilities
Trade payables
17,280
Non-current liabilities
Bank loan
16,000
Total liabilities
33,280
Net assets
74,000
Owner’s interest
Capital invested
24,000
Profit and Loss Reserve:
Opening balance
34,720
Draft profit for the year…
On November 30, 2019, Davis Company and the following account balances:
1. Prepare general journal entries to record preceding transactions. 2. Post to general ledger T-accou11ts. 3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information: (a) accrued salaries at year-end total $1,200; (b ) for simplicity, the building and equipment are being depreciated using the stright-line method over an estimated life of 20 years with no residual all c) supplies on hand at the end of the year total $630; (d ) bad debts expense for the year totals $830; and (e ) the income tax rate is 30%; income taxes are payable in the first quarter of 2020. 4. Prepare company's financial statements for 2019 . 5. Prepare 2019 (a) adjusting and (b) closing entries in the general journal.
The owner's capital account has a credit balance of P624,000 on January 1, 2019. The
owner's withdrawal account has a debit balance of P360,000 on December 31, 2019.
The income summary account contains debit posting of P830,500 and a credit posting
of P1,210,500. What would be the balance of the owner's capital account on
December 31, 2019.
Chapter 1 Solutions
Financial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (a)...
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