Question 1 On 1 April 2020 Gandalf started a business with capital of $20,000 which he paid into a business account. The following is a summary of the cash transactions for the first year: Amounts from customers Salary of assistant Cash paid to suppliers for purchases Purchase of motor van on 31 March 2021 Gandalf's drawings during the year Electricity payments Rent for the year Postage and stationery The following further information is relevant: (1) (2) (3) (4) $ 34,628 4,000 20,700 8,000 4,800 1,120 2,200 700 At the end of the year Gandalf was owed $8,512 by his customers and owed $11,344 to his suppliers. Gandalf promised his assistant a bonus of $800. At 31 March 2021 this had not been paid. At 31 March 2021 there was inventory of $8,514 and Gandalf owed $340 for electricity for the last quarter of the year. As the van was acquired in the last day of March, Gandalf has decided not to charge any depreciation for the year. Required: Prepare a statement of profit or loss for the year ended 31 March 2021 and a statement of financial position at that date.

Question 1 On 1 April 2020 Gandalf started a business with capital of $20,000 which he paid into a business account. The following is a summary of the cash transactions for the first year: Amounts from customers Salary of assistant Cash paid to suppliers for purchases Purchase of motor van on 31 March 2021 Gandalf's drawings during the year Electricity payments Rent for the year Postage and stationery The following further information is relevant: (1) (2) (3) (4) $ 34,628 4,000 20,700 8,000 4,800 1,120 2,200 700 At the end of the year Gandalf was owed $8,512 by his customers and owed $11,344 to his suppliers. Gandalf promised his assistant a bonus of $800. At 31 March 2021 this had not been paid. At 31 March 2021 there was inventory of $8,514 and Gandalf owed $340 for electricity for the last quarter of the year. As the van was acquired in the last day of March, Gandalf has decided not to charge any depreciation for the year. Required: Prepare a statement of profit or loss for the year ended 31 March 2021 and a statement of financial position at that date.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 65.2C

See similar textbooks

Similar questions

vable Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. (Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.) View transaction list Journal entry worksheet 1 Record cash received on note plus interest.
Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
10 Assume that Mr Ahmed purchased OMR 3000 goods from ABC LLC on credit. He paid the entire cash to the company on 28th day from the date of purchase. Write the journal entry in the books of company for the above cash receipt. a. Dr Accounts receivables A/C and Cr Sales A/C. b. Dr Cash A/C and Cr Accounts receivables A/C. c. Dr Accounts receivables A/C and Cr Cash A/C d. Dr Purchase A/C and Cr Accounts receivables A/C
Required information [The following information applies to the questions displayed below.] On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $122,400 on December 31, 2022. The proceeds of the note were $116,400. c. 1. Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. 2. Record the journal entry to show the effects of recording interest expense for the month of September. 3. Record the journal entry to show the effects of repaying the note on December 31, 2022. Complete this question by entering your answers in the tabs below. Required C1 Required C2 Required C3 Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1
Please check my work Keesha Company borrows $250.000 cash on December 1 of the current year by signing a 150-day. 9%. $250.000 note. 1. On what date does this note mature? 2 & 3. What is the amount of interest expense In the current year and the following year from this note? 4. Prepare Journal entrles to record (a) issuance of the note. (by accrual of Interest on December 31, and (c payment of the note at maturity. QUESTION 1. What date does this more mature? (please answer this too)
2020 a. July 1 b. December 31 2021 c. July 1 d. July 1 Loaned $62,000 to employees of the company and received back one-year, 10 percent notes. Accrued interest on the notes. Received interest on the notes. (No interest has been recorded since December 31.) Received principal on the notes. Required: Prepare the journal entries that Smart Solutions Incorporated would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
On May 15, 2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the note signed by the treasurer was $478,700. The interest rate charged by the bank was 6.75%. The bank made the loan on a discount basis. Exercise 7-7 (Algo) Part a - Journal entry a-3. Record the journal entry to show the effect of signing the note and the receipt of the cash proceeds on May 15, 2022. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
hi how do we record this in MYOB. Please help me Transactions from early January 2021 2 Obtained a loan of $14,000 from Uncle Oliver (a family relative of Beatrice Reed) at a simple interest rate of 10% per year, Cheque No. 145, ID #CR000001. The principal and interest on the loan are payable in six months time. 3 Received Cheque No. 227 from Pikea for the full amount outstanding on their account, ID #CR000002. 4 Issued Cheque No. 4098 for $10,065 to Mega Tech in payment of Purchase #303 (Supplier Inv#230). 4 Purchased 9 units MePod multimedia players from Pony at $979 each (includes 10% GST), Purchase #306, Supplier Inv#328. Issued Cheque No. 4099 for $3,900 to this supplier for this particular invoice at the time of the purchase. 4 Issued Cheque No. 4100 for $1,320 (includes 10% GST) to Discount Office Supplies for the cash purchase of office supplies. 6 Sold the following items on credit to Jerry Technology, Invoice #3284: 3 units BG90 plasma televisions for…
QUESTION Amir's mini market was set up in January 2022. The following are the transactions for the month of April 2022. Date 2 4 a. 6 8 b. 16 20 9 Amir, the owner withdrew RM200 cash for his personal use. Purchased goods worth RM900 in cash from Daulat Trading. 10 12 The business paid off its debt to Bala Enterprise for full settlement by electronic funds transfer and received a 5% discount. 14 A credit memo of RM300 was issued to Confucius Cooperative for the return of spoilt goods. Amir invested RM15,000 in a fixed deposit by cheque. Sold goods worth RM3,500 for cash. Paid cash for utilities RM270. The business received full payment from Confucius Cooperative for the amount due after deducting a cash discount of RM30. The sum was deposited into the business's bank account. 22 24 Transaction The business purchased goods worth RM3,000 on credit from Bala Enterprise. Made a cash payment of RM150 for transport of goods purchased from Bala Enterprise. 25 26 Sold goods on credit to…
23 Mr Hamed having furniture manufacturing business in Ibri. Always he purchases wood (Raw materials) from Al Buraimi wood suppliers.On 1st May 2021 Mr Hamed purchased wood for OMR3000 on credit and paid OMR 1000 immediately. For the remaining amount Mr Hamed gave written promise to the supplier to pay that amount on 31st December 2021. The written promise given by Mr Hamed to the supplier is known as: a. Short-term notes receivables b. Invoice c. Receipt d. Short term notes payables
38) Solo traders has the following transactions for the month of January 2019. 9- Goods purchased and paid cash of RO 2,200 14- Paid office expenses of RO 1,240 19- Paid a monthly loan to Bank Muscat of RO 1,450. 24- Paid RO 7,500 to Black traders for the goods purchased on credit. Calculate and show the amount which will be transferred to Total column of Cash payments book for the month of January 2019? a. RO 2,200 b. RO 12,390 c. RO 1,240 d. RO 7,500