The balance sheet of the company ABC as at 01.12.2019:

ASSETS		EQUITY & LIABILITIES
Inventory: Traded goods	5 000	Shareholders’ equity	30 000
Receivables	25 000	Deferred income*	10 000
Cash and cash equivalents	10 000	Accrued cost**	10 000
Total assets	50 000	Total equity & liabilities	50 000

* Advanced collected from customer in November 2019. ** Renovation services conducted in November 2019, no invoice in November.

In December (costs by nature):

1. On 5.12.2019 the company delivered 20% of goods to the customer for which it received an advance. The company delivered goods at a value of 800.

2. On 15.12.2019 the company received an invoice for renovation services in the amount of 8 200.

3. On 31.12.2019 the company calculated the energy used in December 1 350. The company will pay the amount at the beginning of January 2020.

4. On 31.12.2019 the company paid for the subscription of “The Wall Street Journal” for January-June 2020 period.

Required:

1. Open the T-accounts based on the Balance Sheet data.

2. Record all transactions in T-accounts and close all accounts on 31.12.2019. Calculate the amount of net income / (loss).

Answer rating: 100% (QA)

Inventory Traded Goods Account Particulars Amount Date Particulars Amount Opening Balance 5000 51220... View the full answer