Glorious Electrical Appliances (GEP) Co. is a company that sells electrical tools. GEP uses perpetual inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Glorious Electrical Appliances (GEP) Co. is a company that sells electrical tools. GEP uses perpetual inventory system in recording its inventory. The financial position of GEP as at 31 December 2016 is as follows: Accounts Cash Accounts Receivable Inventories Office supplies Lorry Accumulated depreciation - Lorry Accounts payable Notes payable Unearned sales revenue Capital Following are transactions occur in 2017. Date 4 January 1 February 23 March 5 April 22 April 6 May 15 May 5 July 23 August 23 September 31 December RM 567,800 243,100 $75,000 16,000 Transactions Mr. Chan, the owner, invested RM20,000 cash as an additional capital to the business. GEP sold 235 units of bulb to customers by cash. The sales price and cost of each bulb is RM5S and RM18 respectively. GEP sold 12 units of microwave on account to Melaka Culinary Institute (MCI). The sales price and cost of each microwave is RM900 and RM750 respectively. The credit term offered to the MCI is 5/30, n/40. 64,700 12,000 GEP purchased 45 units of steam iron from Pensonic Sdn. Bhd. on account. The price of each steam iron is RM1,500. MCI made a payment on the amount owed to GEP. One unit of the steam irons was sent back to Pensonic Sdn. Bhd. due to the non-functional steam button. Pensonic Sdn. Bhd. issued credit memo for the returned steam iron and reduced RM1,500 from the amount owed by GEP. GEP identified the following expenses for 2017: • Rental RM12,000 • Utilities • Staff salary 195,600 337,000 272,000 650,000 GEP made full payment to Pensonic Sdn. Bhd and received RM200 discount for payment made within the discount period. Depreciation - Van GEP paid half of its outstanding accounts payable and notes payable. GEP bought a used van with a value of RM35,000 by cash. RM1,500 RM21,000 RM400 Mr. Chan made a withdrawal of cash amounted RM15,000 for his own personal utilisation. 31 December 31 December Depreciation - Lorry RM1,000 A manual inspection on the office supplies found the remaining balance of office supplies is RM10,000. The outstanding balance of unearned sales revenue as at 31 December is RM100,000. REQUIRED: (a) Prepare journal entries to record the transactions for 2017. (9 Marks) (b) Prepare a Statement of Profit or Loss for GEP Co. for the year ended 31 December 2017. (3 Marks) (c) Prepare a Statement of Owner's Equity for GEP Co. as at 31 December 2017. (2 Marks) (d) Prepare a Statement of Financial Position for GEP Co. as at 31 December 2017. (6 Marks) (e) Distinguish TWO (2) differences between F.O.B Shipping Point and F.O.B Destination. (5 Marks) Glorious Electrical Appliances (GEP) Co. is a company that sells electrical tools. GEP uses perpetual inventory system in recording its inventory. The financial position of GEP as at 31 December 2016 is as follows: Accounts Cash Accounts Receivable Inventories Office supplies Lorry Accumulated depreciation - Lorry Accounts payable Notes payable Unearned sales revenue Capital Following are transactions occur in 2017. Date 4 January 1 February 23 March 5 April 22 April 6 May 15 May 5 July 23 August 23 September 31 December RM 567,800 243,100 $75,000 16,000 Transactions Mr. Chan, the owner, invested RM20,000 cash as an additional capital to the business. GEP sold 235 units of bulb to customers by cash. The sales price and cost of each bulb is RM5S and RM18 respectively. GEP sold 12 units of microwave on account to Melaka Culinary Institute (MCI). The sales price and cost of each microwave is RM900 and RM750 respectively. The credit term offered to the MCI is 5/30, n/40. 64,700 12,000 GEP purchased 45 units of steam iron from Pensonic Sdn. Bhd. on account. The price of each steam iron is RM1,500. MCI made a payment on the amount owed to GEP. One unit of the steam irons was sent back to Pensonic Sdn. Bhd. due to the non-functional steam button. Pensonic Sdn. Bhd. issued credit memo for the returned steam iron and reduced RM1,500 from the amount owed by GEP. GEP identified the following expenses for 2017: • Rental RM12,000 • Utilities • Staff salary 195,600 337,000 272,000 650,000 GEP made full payment to Pensonic Sdn. Bhd and received RM200 discount for payment made within the discount period. Depreciation - Van GEP paid half of its outstanding accounts payable and notes payable. GEP bought a used van with a value of RM35,000 by cash. RM1,500 RM21,000 RM400 Mr. Chan made a withdrawal of cash amounted RM15,000 for his own personal utilisation. 31 December 31 December Depreciation - Lorry RM1,000 A manual inspection on the office supplies found the remaining balance of office supplies is RM10,000. The outstanding balance of unearned sales revenue as at 31 December is RM100,000. REQUIRED: (a) Prepare journal entries to record the transactions for 2017. (9 Marks) (b) Prepare a Statement of Profit or Loss for GEP Co. for the year ended 31 December 2017. (3 Marks) (c) Prepare a Statement of Owner's Equity for GEP Co. as at 31 December 2017. (2 Marks) (d) Prepare a Statement of Financial Position for GEP Co. as at 31 December 2017. (6 Marks) (e) Distinguish TWO (2) differences between F.O.B Shipping Point and F.O.B Destination. (5 Marks)
Expert Answer:
Answer rating: 100% (QA)
a Journal entries to record the transactions for 2017 4 January Cash Dr 20000 Capital Cr 20000 To record additional capital invested by Mr Chan 1 February Cash Dr 12925 235 x 55 18 Sales Revenue Cr 12... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
On 1 April 20X5 Hardy entity acquired 4 million of Sibling entity's ordinary shares paying ¬4.50 each. At the same time it also purchased at nominal value ¬500 000 of its 10% preference...
-
Question 1 This question has two parts, (A) and (B). Answer both parts. 100% Liverpool plc is a company that manufactures a number of different types of electrical goods and has a year end of 31...
-
Use the following information to prepare the Pro Forma Statement of Financial Position of Lilac Limited as at 31 December 2022. 1.3 (11 marks) INFORMATION The following information was supplied by...
-
A 0.20-m-diameter, thin-walled steel pipe is used to transport saturated steam at a pressure of 20 bars in a room for which the air temperature is 25C and the convection heat transfer coefficient at...
-
Depreciation Estimates Langsoms Mfg. is planning for a new project. Usually, Langsoms depreciates long-term equipment for ten years. The equipment for this project is specialized and will have no...
-
The normal melting point of copper is 1357 K, and fus H of Cu is 13.05 kJ mol -1 . (a) How much heat, in kilojoules, is evolved when a 3.78 kg sample of molten Cu freezes? (b) How much heat, in...
-
Using the variance data for Menounos Manufacturing Co., prepare an income statement through gross profit for the year ended December 31, 20Y6. Assume the company sold 3,000 units at $100 per unit.
-
The Cutting Department of Hong Manufacturing has the following production and cost data for July. Instructions(a) Determine the equivalent units of production for (1) Materials and (2) Conversion...
-
A 2.00 m rod is rotating with an oscillating angular momentum given by sin(2.00) . If a small rocket with oscillating linear momentum 10.0cos(2.00) is fired at =0.00 s , at what time will it need to...
-
Bruce also requires a calculation of taxable income for the most recent year ended December 31, 2019. The calculation should be prepared in Excel. He has also requested that you prepare the year-end...
-
Sol Limited, reported earnings of $510,000 in 20X8. The company has $91,000 of depreciation expense this year, and claimed CCA of $142,000. The tax rate was 25%. At the end of 20X7, there was a...
-
A citizens group in the Pacific Northwest has the following statement in its charter: Our goal is to ensure that large, powerful corporations pay their fair share of taxes in this country. To...
-
New PhDs in economics entering the job market find that academic jobs (jobs teaching at colleges and universities) pay about 30 percent less than nonacademic jobs such as working at a bank or a...
-
Suppose that in 2019, Congress passed and the president signed a new simple income tax with a flat rate of 20 percent on all income greater than $35,000 (no tax on the first $35,000). Assume that the...
-
You are shopping for a new microwave. How would reducing price transparency soften competition between sellers of microwaves?
-
In the United States, 44 states have passed legislation to legalize lotteries, and the states use the lottery proceeds to raise revenue. If you view the price of a lottery ticket as a tax, do you...
-
Given the following Ksp chart, rank the salts listed below in order of molar solubility. Substance AgBr AgBrO3 Ag2CO3 AgCl Ag CrO4 Ag2 CrO7 Agl AgSCN Al(OH)3 BaCO3 most soluble X FeS Ksp 7.70 x 10-13...
-
B.) What is the approximate concentration of free Zn 2+ ion at equilibrium when 1.0010 -2 mol zinc nitrate is added to 1.00 L of a solution that is 1.080 M in OH - . For [Zn(OH) 4 ] 2- , K f = 4.610...
-
Assume that a company needs to acquire a large special-purpose materials handling facility. Given that no outside vendor exists for this type of facility and that the company has available...
-
Suppose an analyst reformulates financial statements to prepare the alternative decomposition of ROCE for a firm with no debt. The analyst determines that the company holds excess cash as large...
-
Some asset valuations using historical costs are highly relevant and very reliable, whereas others may be reliable but lack relevance. Some asset valuations based on fair values are highly relevant...
-
You are calculating the estimated time to completion for a project of 12 months duration and a budgeted cost of $500,000. Assuming the following information, calculate the Schedule Performance Index...
-
Go to www.brighthubpm.com/monitoring-projects/51982-understanding-the-s-curve-theory-for-project-management-monitoring/ and read the article on the multiple uses of project S-curves. What does the...
-
You had planned to construct a series of eight traffic roundabouts in your town, with each roundabout costing $150,000. Your goal was to complete the project during the four (4) months of good...
Study smarter with the SolutionInn App