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Financial Accounting Reporting Analysis And Decision Making 6th Edition Shirley Carlon - Solutions
E7.2 Identify the principles of internal control for handling cash. LO3 Gerry’s Pizza operates strictly on a takeaway basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. At the counter, the customer can see other employees making the pizzas and the large
E7.1 Distinguish cash flows from assets. LO1 As a recent graduate of a fashion design and business degree, Edith Leung is planning to buy a fashion boutique from Keitha Jones, a family friend. Following are selected items from the financial records of the fashion boutique:Credit card sales $56 000
BE7.9 Prepare entries for credit card sale and sale of accounts receivable. LO2, 10 Consider these transactions:(a) Bella Restaurant accepted MasterCard for payment of a $200 dinner. The bank charges a 4% fee. What entry should Bella Restaurant make?(b) Frantella Ltd sold its accounts receivable of
BE7.8 Prepare entry for estimated uncollectables and classifications, and calculate ratios. LO8, 9, 10 During its first year of operations, Wendy Ltd had credit sales of $3 million, of which $600 000 remained uncollected at year-end. The credit manager estimates that $40 000 of these receivables
BE7.7 Prepare entry using allowance method. LO8 Massey Ltd uses the allowance method to record bad debts expense and concludes, using the ageing of accounts receivable method, that 1% of accounts receivable will become uncollectable.Accounts receivable are $500 000 at the end of the year, and the
BE7.6 Identify different types of receivables. LO7 Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a statement of financial position.(a) Advanced $10 000 to an employee.(b) Received
BE7.5 Prepare entry to replenish a petty cash fund. LO11 On 20 March Sazin’s petty cash fund of $200 is replenished when the fund contains $120 in cash and receipts for postage $32, supplies $26, and travel expense $22. Prepare the journal entry in general journal form to record the replenishment
BE7.4 Prepare partial bank reconciliation. LO3 At 31 July Ridley Pty Ltd has this bank information: cash balance as per bank $8420; unpresented cheques $862; outstanding deposits $2700; and a bank service charge $20. Determine the balance of the cash at bank account after any required adjustments.
BE7.3 Apply internal control principles to handling cash. LO3 Aaron Tso is the merchandising manager for Franklin Office Supplies Ltd. During the month of April when the Franklin’s accounts payable manager was on holiday, Aaron was responsible for receiving the goods that he ordered as well as
BE7.2 Identify costs and benefits of electronic banking. LO2 Harry Ford is starting a fruit juice bar on campus. He is wondering whether he should accept EFTPOS payments at his juice bar. Identify some of the costs and benefits of using electronic banking for this business.
BE7.1 Distinguish cash flows from assets. LO1 Identify which of the following items are (a) cash flows, (b) assets and (c) liabilities accounts. Inventory. Bank loan. Monthly loan payment. GST receivable. Motor vehicle. Car loan. Car loan payment.
E6.15 Determine correct posting amount to control account. LO9, 10, 14 Building Blocks Pty Ltd uses both special journals and a general journal to record transactions.Building Blocks also posts creditors’ accounts in the accounts payable subsidiary ledger. The postings for the most recent month
E6.14 Explain posting to control account and subsidiary ledger. LO9, 10, 14 The general ledger of Bing Ltd contained the following accounts receivable control account (in T-account form). Also shown is the related subsidiary ledger.General ledger Accounts receivable control Feb. 1 Balance 28 628
E6.13 Determine control account balances, and explain posting of special journals. LO9, 10, 14 Ruby Ltd uses both special journals and a general journal as described in this chapter. On 30 June, after all monthly postings had been completed, the accounts receivable control account in the general
E6.12 Determine correct posting amount to control account. LO9, 14 Musac Hi Fi Ltd uses both special journals and a general journal as described in this chapter.Musac Hi Fi Ltd also posts customers’ accounts in the accounts receivable subsidiary ledger. The postings for the most recent month are
E6.11 Prepare purchases and general journals. LO10, 13 Selected accounts from the ledgers of Peterson Ltd at 31 July showed the following.General ledger ACCOUNT Store equipment No. 153 Date Explanation Ref. Debit Credit Balance July 1 G11 1 800 1 800 ACCOUNT Accounts payable No. 201 Date
E6.10 Explain posting to control account and subsidiary ledger. LO9 The general ledger of Frenchy Ltd contained the following accounts payable control account (in T-account form). Also shown is the related subsidiary ledger.General ledger Accounts payable control Feb. 15 General journal 1 400 Feb.
E6.9 Indicate journalising in special journals. LO10 Below are some typical transactions incurred by Rotunda Printworks.1. Payment of creditors on account.2. Return of inventory sold for credit.3. Collection from customers for amounts owing on account.4. Sale of land for cash.5. Sale of inventory
E6.8 Journalise transactions in general journal and post. LO10, 13, 14 Opera House Ltd has the following selected transactions during March.Mar. 2 Purchased equipment costing $6000 from Harbour Ltd on account.5 Received credit note for $300 from Boat & Co. for inventory damaged in shipment to Opera
E6.7 Explain journalising in cash journals. LO10, 13 Jamie’s Hardware uses the columnar cash journals illustrated in the text. In April, the following selected cash transactions occurred.1. Gave a refund to a customer for the return of damaged goods.2. Received payment from a customer. The
E6.6 Record transactions in cash receipts and cash payments journal. LO9, 10, 13 Vanessa Bosnat uses special journals and a general journal. The following transactions occurred during May 2019.May 1 V. Bosnat invested $30 000 cash in the business.2 Sold inventory to J. Simon for $12 000 cash. The
E6.5 Record transactions in sales and purchases journal. LO9, 10, 13 Duckstein Ltd uses special journals and a general journal. The following transactions occurred during September 2020.Sept. 2 Sold inventory on account to R. Crow, invoice no. 101 for $960, terms n/30. The cost of the inventory
E6.4 Post various journals to control and subsidiary accounts. LO9, 10, 14 On 1 September the balance of the accounts receivable control account in the general ledger of Teone Ltd was $5980. The customers’ subsidiary ledger contained account balances as follows:Edmonds $1220, Lee $1320, Roemer
E6.3 Determine control account balances, and explain posting of special journals. LO9, 10, 14 Tessa Ltd uses both special journals and a general journal as described in this chapter. On 30 June, after all monthly postings had been completed, the accounts receivable control account in the general
E6.2 Identify the principles and limitations of internal control. LO5, 8 Caterpilla Tractors buys wheels from Wheels R Us in order to complete the manufacture of its tractors. The Mina brothers work for Caterpilla Tractors. Sam works in the purchasing department while Peter works in the accounting
E6.1 Identify the principles and limitations of internal control. LO5, 8 Rotundo’s Pizza operates strictly on a takeaway basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. At the counter, the customer can see other employees making the pizzas and the
BE6.8 Identify transactions for special journals. LO10, 13 Identify the special journal(s) in which the following column headings appear.(a) Discount allowed Dr.(b) Accounts receivable Cr.(c) Cash Dr.(d) Sales Cr.(e) Inventory Dr.
BE6.7 Indicate postings to cash receipts journal. LO10, 14 Computer Components Ltd uses a multicolumn cash receipts journal. Indicate which column(s)is/are posted only in total, only daily, or both in total and daily.(a) Accounts receivable.(b) Discount allowed.(c) Cash.(d) Other accounts.
BE6.6 Identify entries to cash receipts journal. LO13 Indicate whether each of the following debits and credits is included in the cash receipts journal.(Use ‘Yes’ or ‘No’ to answer this question.)(a) Debit to sales.(b) Credit to inventory.(c) Credit to accounts receivable.(d) Debit to
BE6.5 Identify special journals. LO10, 13 Identify the journal in which each of the following transactions is recorded.(a) Cash sales.(b) Owner withdrawal of cash.(c) Cash purchase of land.(d) Credit sales.(e) Purchase of inventory on account.(f) Receipt of cash for services performed.
BE6.4 Identify subsidiary ledger accounts. LO9 Identify in which ledger (general or subsidiary) each of the following accounts is shown.(a) Rent expense.(b) Accounts receivable — Melbourne Pty Ltd.(c) Bank loan.(d) Accounts payable — Sydney Pty Ltd.
BE6.3 Identify the principles and limitations of internal control. LO5, 8 Several of the internal control procedures of Cumin Ltd are listed below. Identify the principles of internal control that are being followed in each case.(a) Employees who have physical control of assets do not have access
BE6.2 Identify major phases in accounting system development. LO2 The development of an accounting system involves four phases: analysis, design, implementation and follow-up. Identify the statement that best describes each of these four phases.(a) Determining internal and external information
BE6.1 Identify basic principles of accounting information system development. LO1 Indicate whether each of the following statements is true or false.(a) When designing an accounting system, we need to think about the needs and knowledge of both the top management and various other users.(b) When
E5.13 Prepare closing entries on a worksheet. LO11 Statement of profit or loss data for Goddard Pty Ltd were provided for 2018 and 2019 in E5.11.Required Using the 2018 data, enter the closing entries up to gross profit on a worksheet. (Hint: See figure 5.25 for an example.)
E5.12 Journalise closing entries. LO11 Statement of profit or loss data for Goddard Pty Ltd were provided for 2018 and 2019 in E5.11.Required Using the 2019 data, prepare closing entries up to gross profit.
E5.11 Prepare correct statements of profit or loss. LO10 Goddard Pty Ltd reported the following statement of profit or loss data for a 2-year period.2018 2019 Sales $420 000 $500 000 Beginning inventory 64 000 80 000 Cost of goods purchased 346 000 404 000 Cost of goods available for sale 410 000
E5.10 Apply cost flow methods to perpetual records. LO9 Information about SurfsUp Ltd is presented in E5.6. Additional data regarding SurfsUp’s sales of Xpert snowboards are provided below. Assume that SurfsUp uses a perpetual inventory system.Date Explanation Units Unit price Total cost May 5
E5.9 Calculate inventory turnover, days in inventory and gross profit rate. LO8 The following information is available for BJ Electronics Ltd for 2018, 2019 and 2020.(in millions) 2018 2019 2020 Beginning inventory $ 1 051 $ 853 $ 732 Ending inventory 853 732 1 016 Cost of sales 8 452 8 525 9 330
E5.8 Calculate and explain the lower of cost and net realisable value basis of accounting for inventories.LO7 The following data are available for Fashionista Hair Accessories Pty Ltd at 31 December:Cost Net realisable value Silk ribbons $25 200 $21 420 Gold-plated hair clips 18 900 19 950 Crystal
E5.7 Calculate inventory and cost of sales using FIFO, LIFO and average cost. LO5 Fenning Pty Ltd reports the following for the month of June:Date Explanation Units Unit cost Total cost June 1 Inventory 200 $10 $2 000 12 Purchases 300 12 3 600 23 Purchases 500 14 7 000 30 Inventory 180 Required(a)
E5.6 Calculate inventory and cost of sales using FIFO and LIFO. LO5 SurfsUp Ltd sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to SurfsUp’s purchases of Xpert snowboards during May. During the same month, 124 Xpert snowboards were sold. SurfsUp
E5.5 Prepare a statement of profit or loss. LO4 Presented here is information related to Djuric Ltd for the month of January 2019.Freight-in $ 14 300 Rent expense—store space 14 300—office space 14 300 Freight-out 10 010 Salary expense —sales 30 030 —office 57 200 Insurance expense 17 160
E5.4 Determine the correct inventory amount. LO3 Bank of Epping is considering giving Hooton Ltd a loan. Before doing so, the bank decides that further discussions with Hooton’s accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of
E5.3 Prepare cost of sales section. LO2 Below is a series of cost of sales sections for companies X, F, L and S.X F L S Beginning inventory 250 120 1 000 (j)Purchases 1 500 1 080 (g) 43 590 Purchase returns and allowances 40 (d) 290 (k)Net purchases (a) 1 030 7 210 42 090 Freight-in 110 (e) (h) 2
E5.2 Prepare cost of sales section. LO2 The trial balance of Francine Pty Ltd at the end of its financial year, 30 June 2019, includes these accounts: Beginning inventory $56 760; Purchases $469 920; Sales $627 000; Sales returns and allowances $9900; Freight-out $3300; Purchase returns and
E5.1 Journalise purchase transactions. LO1 This information relates to Peters Ltd.1. On 5 April purchased inventory from D. Nicks Ltd for $9000, terms 2/7, n/30, FOB shipping point.2. On 6 April paid freight costs of $450 on inventory purchased from D. Nicks Ltd.3. On 7 April purchased equipment on
BE5.7 Determine correct financial statement amount. LO10 Williams Ltd reports profit of $180 000 in 2018. However, ending inventory was understated by$14 000. What is the correct profit for 2018? What effect, if any, will this error have on total assets as reported in the statement of financial
BE5.6 Apply cost flow methods to perpetual records. LO9 Harrots Department Store uses a perpetual inventory system. Data for product E2–D2 include the following purchases:Date Number of units Unit price May 7 50 $12 July 28 30 18 On 1 June Harrots sold 30 units, and on 27 August, 33 more units.
BE5.5 Calculate inventory turnover and days in inventory. LO8 At 30 June, the following information (in thousands) was available for sunglasses manufacturer, Che Eyewear Ltd: Ending inventory $53 322; Beginning inventory $39 300; Cost of sales$129 201; Sales revenue $347 901. Calculate inventory
BE5.4 Determine the lower of cost and net realisable value basis of accounting for inventories. LO7 Olynda Garden Centre accumulates the following data at 30 June:Inventory categories Cost data Net realisable value Native trees $16 800 $14 280 Potting mix 12 600 13 300 Garden statues 19 600 17 920
BE5.3 Calculate ending inventory using FIFO and LIFO. LO5 In its first month of operations, Cushion Ltd made three purchases of inventory in the following sequence: (1) 300 units at $12, (2) 400 units at $14, and (3) 500 units at $18. Assuming there are 400 units on hand, calculate the cost of the
BE5.2 Calculate cost of sales and gross profit. LO2 Assume that Jess Ltd uses a periodic inventory system and has the following account balances:Beginning inventory $45 000, Ending inventory $67 500, Sales $472 500, Purchases $300 000, Purchase returns $14 250, and Freight-in $12 000. Determine the
BE5.1 Identify inventory systems and inventory cost flow methods. LO1, 5 Suggest the most appropriate inventory system and inventory cost flow method for each of the following businesses and products:(a) Textbook sales in the co-op bookshop.(b) Petrol sales in the local petrol station.(c) Antique
E4.13 Prepare journal entries for GST. LO7 Use the data provided in E4.11 to answer the following questions.Required(a) Record the journal entries for the March quarter assuming the company uses a GST clearing account.(b) Record the journal entry to discharge the GST liability assuming the company
E4.12 Prepare journal entries for GST. LO7 Phams Pottery Ltd reported the following transactions for May:May 3 Purchased inventory for $440 (including $40 GST).10 Sold inventory for $550 (including $50 GST).Required Record the journal entries for May and the journal entry to discharge the GST
E4.11 Prepare journal entries for GST. LO7 Ezios Earthenware Ltd lodges quarterly business activity statements with the taxation authority.Required (a) Record the journal entries during the March 2019 quarter for sales $6600 (including GST)and purchases $1210 (including GST).(b) What is the journal
E4.10 Prepare sales revenue section of a statement of profit or loss. LO4 The adjusted trial balance of Snuffy Pty Ltd shows these data pertaining to sales at the end of its financial year, 30 June 2018: sales $585 000; freight-out $7800; sales returns and allowances$9100; and discount allowed
E4.9 Prepare a fully classified statement of profit or loss and calculate profitability ratios. LO4, 5 In its statement of profit or loss for the year ended 30 June 2019, Lulu Ltd reported the following condensed data:Administrative expenses $ 261 000 Income tax expense $ 37 980 Cost of sales 593
E4.8 Calculate missing amounts and calculate profitability ratios. LO4, 5 Financial information is presented here for two entities:Bright Ltd Dull Ltd Sales $180 000 ?Sales returns ? $ 10 000 Net sales 162 000 190 000 Cost of sales 112 000 ?Gross profit ? 76 000 Operating expenses 30 000 ?Profit ?
E4.7 Prepare a statement of profit or loss and calculate profitability ratios. LO4, 5 Presented is information related to Dawson Ltd for the month of January 2018:Cost of sales $ 416 000 Discount allowed $ 16 000 Freight-out 14 000 Sales returns and allowances 26 000 Insurance expense 12 000 Sales
E4.6 Journalise purchase transactions. LO2 On 10 June Grand Accessories Ltd purchased $5400 of inventories from Highend Distributors Ltd, terms 2/7, n/30. Grand Accessories Ltd pays the freight costs of $270 to Freight Masters on 11 June. Goods totalling $270 are returned to Highend Distributors
E4.5 Journalise purchase transactions. LO2 The following information relates to Hampton Pty Ltd.1. On 5 April purchased inventory from R. Ward & Co. for $9000, terms 2/7, n/30.2. On 6 April paid freight costs to Freight Masters of $450 on inventories purchased from R. Ward & Co.3. On 7 April
E4.4 Journalise perpetual inventory entries. LO2, 3 On 1 September Cambell’s Office Supplies had an inventory of 30 deluxe pocket calculators at a cost of $22 each. The business uses a perpetual inventory system. During September these transactions occurred:Sept. 6 Purchased 80 calculators at $22
E4.3 Journalise sales transactions. LO3 Use the information provided in E4.2 to complete the following activities.Required(a) Record the sales of inventory in the accounts of Queenscliff Pty Ltd. The cost of the inventory sold was $12 000.(b) What are the journal entries on 10 July when Queenscliff
E4.2 Journalise perpetual inventory transactions. LO2, 3 On 1 July Queenscliff Pty Ltd sold inventory to Stokers Pty Ltd for $20 000. The credit terms were 3/10, n/30. Stokers Pty Ltd paid the account promptly on 10 July and uses the perpetual inventory system to record transactions.Required(a)
E4.1 Journalise sales transactions. LO3 The following transactions are for Unique Artworks Ltd.1. On 7 December Unique Artworks Ltd sold $792 000 of inventory to Cambridge Collectables Ltd, terms 2/7, n/30. The cost of the inventory sold was $528 000.2. On 8 December Cambridge Collectables Ltd was
BE4.8 Understanding GST journal entries. LO7 The following journal entry was recorded in the books of Sellers Limited.Dr GST collected 100 Cr GST paid 90 Cr Cash 10 Explain the nature of this journal entry.
BE4.7 Calculate GST and revenue earned. LO7 Maori Jewellery is a respected jeweller in Christchurch. For the month of June, Maori Jewellery sold NZ$25 000 (excluding GST) worth of merchandise to customers for cash. The GST was 15%. How much cash did Maori Jewellery receive? How much sales revenue
BE4.6 Calculate profitability ratios. LO5 Long Pty Ltd reported net sales of $275 000, cost of sales of $110 000, operating expenses of$55 000, profit after tax of $88 000, beginning total assets of $550 000, and ending total assets of $660 000. Calculate each of these values:(a) Return on assets
BE4.5 Identify placement of items on a fully classified statement of profit or loss. LO4 Explain where each of these items would appear on a fully classified statement of profit or loss: interest revenue, cost of sales, depreciation expense, sales returns and allowances, purchase returns and
BE4.4 Prepare sales revenue section of the statement of profit or loss. LO4 Aditya Ltd provides this information for the month ended 31 October 2018: sales on credit$363 000; cash sales $121 000; discount allowed $6050; and sales returns and allowances$24 200. Prepare the sales revenue section of
BE4.3 Journalise sales transactions. LO3 Prepare the journal entries to record the following transactions in Simon Ltd’s records using a perpetual inventory system.(a) On 2 March Simon Ltd sold $450 000 of inventory to Finkle Ltd, terms 2/7, n/30. The cost of the inventory sold was $300 000.(b)
BE4.2 Journalise perpetual inventory entries. LO2, 3 Neo Ltd buys inventory on account from Gruff Ltd. The selling price of the goods is $1800 and the cost of goods to Mayo Ltd is $1200. Both entities use perpetual inventory systems. Journalise the transactions in the records of both entities.
BE4.1 Calculate missing amounts in determining profit. LO4 Presented here are the components in Felix Ltd’s statement of profit or loss. Determine the missing amounts.Sales Cost of sales Gross profit Operating expenses Profit$195 000 (b) $113 100 (d) $28 080$280 800 $169 000 (c) (e) $76 700(a)
E3.13 Prepare adjusting entries. LO3, 4 A review of the ledger of Monkey Ltd at 30 June 2019 produced the following data relating to the preparation of annual adjusting entries:1. Prepaid insurance $37 260: the entity has separate insurance policies on its buildings and its motor vehicles. Policy
E3.12 Journalise basic transactions and adjusting entries. LO4 Selected accounts of Snowmass Ltd are shown here:Supplies expense Supplies July 31 500 July 1 Bal. 1 100 July 31 500 10 200 Salaries payable Service revenue receivable July 31 1 200 July 31 500 Salaries expense Service revenue received
E3.11 Analyse adjusted data. LO3, 4, 5 This is a partial adjusted trial balance of Martin Pty Ltd.MARTIN PTY LTD Adjusted trial balance as at 31 March 2020 No. Account name Debit Credit 110 Supplies $ 700 112 Prepaid insurance 2 400 212 Salaries payable $ 800 213 Service revenue received in advance
E3.10 Analyse adjusted data. LO3, 4, 5 This is a partial adjusted trial balance of Darcy Designs Pty Ltd.DARCY DESIGNS PTY LTD Adjusted trial balance (partial)as at 31 July 2019 No. Account name Debit Credit 110 Supplies $1 500 112 Prepaid insurance 2 400 212 Salaries payable $1 500 213 Service
E3.9 Prepare a correct statement of profit or loss. LO1, 3, 4, 5 The statement of profit or loss of Wolfmother Ltd for the month of July 2020 shows a profit of $1400 based on service revenue $5500; wages expense $2300; supplies expense $1200; and electricity expense $600. In reviewing the
E3.8 Prepare adjusting entries. LO4 The trial balance for Wong Pty Ltd is shown in figure 3.4. In lieu of the adjusting entries shown in the text at 31 October, assume the following adjustment data:1. Advertising supplies on hand at 31 October total $1600.2. Benefits of prepaid insurance of $100
E3.7 Prepare adjusting entries. LO4 Con James commenced a dental practice on 1 January 2019. During the first month of operations the following transactions occurred:(a) Performed services for patients and, at 31 January, $1500 was earned for these services but not yet billed to the patients.(b)
E3.6 Prepare adjusting entries from selected account data. LO4 The ledger of Uniform Ltd on 30 June of the current year includes these selected accounts and corresponding account numbers before adjusting entries have been prepared:Debits Credits 100 Prepaid insurance $14 040 110 Supplies 8 400 120
E3.5 Identify types of adjustments and accounts before adjustment. LO3, 4 Zimbabwe Ltd accumulates the following adjustment data at 30 June:(a) Services provided but not yet invoiced total $600.(b) Store supplies of $300 are on hand. Supplies account shows $2300 balance.(c) Electricity expenses of
E3.4 Identify accounting concepts, principles and criteria. LO2 Presented below are the concepts, principles and criteria used in this and previous chapters:1. Accounting entity concept.2. Going concern principle.3. Monetary principle.4. Accounting period concept.5. Full disclosure principle.6.
E3.3 Identify the violated concept, principle or criterion. LO2 Here are some accounting reporting situations:(a) Tercek Ltd recognises revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain.(b) Bonilla Co. Ltd is
E3.2 Identify accounting concepts, principles, criteria and constraints. LO2 These are the concepts, principles, criteria and constraints discussed in this and previous chapters:1. Accounting entity concept.2. Accounting period concept.3. Cost principle.4. Expense recognition criteria.5. Full
E3.1 Determine cash-basis and accrual-basis revenue. LO1 In its first year of operations, Tang Pty Ltd generated $78 000 for services provided, $12 000 of which was on account and still outstanding at year-end. The remaining $66 000 was received in cash from customers.The company incurred operating
BE3.7 List the required steps in the accounting cycle sequence. LO7 The required steps in the accounting cycle are listed in random order below. List the steps in proper sequence.(a) Journalise the transactions.(b) Post to ledger accounts.(c) Prepare a post-closing trial balance.(d) Prepare an
BE3.6 Identify the financial statement for selected accounts; identify post-closing trial balance accounts. LO6, 7 The following selected accounts appear in the adjusted trial balance for Khanna Ltd. Indicate the financial statement on which each balance would be reported, and identify the accounts
BE3.5 Analyse accounts in an adjusted trial balance. LO5 The trial balance of Hoi Ltd includes the following statement of financial position accounts.Identify the accounts that might require adjustment and for each indicate (1) the type of adjusting entry (prepaid expenses, revenue received in
BE3.4 Prepare adjusting entries for accruals. LO4 The bookkeeper for DeVoe Ltd asks you to prepare the following accrued adjusting entries at 30 June:(a) Interest on loan of $200 is accrued.(b) Services performed but not yet invoiced total $700.(c) Salaries of $700 earned by employees have not been
BE3.3 Prepare adjusting entry for depreciation. LO4 At the end of its first year, the trial balance of Shah Ltd shows equipment $25 000 and zero balances in accumulated depreciation—equipment and depreciation expense. Depreciation for the year is estimated to be $3000. Prepare the adjusting entry
BE3.2 Identify the major types of adjusting entries. LO3 Riko Ltd accumulates the following adjustment data at 31 March. Indicate (1) the type of adjustment(prepaid expense, accrued revenues, and so on) and (2) the status of the accounts before adjustment (overstated or understated).(a) Supplies of
BE3.1 Identify the impact of transactions on cash and retained earnings. LO1 Transactions that affect profits do not necessarily affect cash.Required Identify the effect, if any, that each of the following transactions would have upon cash and retained earnings. The first transaction has been
PSB2.10 Prepare a correct trial balance. LO8 This trial balance for Glasgow Pty Ltd does not balance.GLASGOW PTY LTD Trial balance as at 31 December 2019 Account name Debit Credit Cash $ 7 804 Accounts receivable $ 9 736 Supplies 3 640 Equipment 9 560 Accounts payable 10 798 Revenue received in
PSB2.9 Prepare a correct trial balance. LO8 This trial balance for Theatre Adelaide Ltd does not balance.THEATRE ADELAIDE LTD Trial balance as at 31 May 2019 Account name Debit Credit Cash $ 5 850 Accounts receivable $ 2 750 Prepaid insurance 700 Equipment 8 000 Account name Debit Credit Accounts
PSB2.8 Journalise transactions, post, prepare a trial balance and financial statements.LO3, 5, 6, 7, 8 Lights Out Theatre Ltd was recently formed. All facilities were completed on 31 March 2019.On 1 April, the ledger showed: (100) Cash $6000; (120) Land $10 000; (130) Buildings $8000;(140)
PSB2.7 Journalise transactions, post, prepare a trial balance and financial statements.LO3, 5, 6, 7, 8 Maria George incorporated Busy Bookkeepers Pty Ltd, a bookkeeping practice, on 1 January 2019. During the first month of operations, these events and transactions occurred:Jan. 2 Shareholders
PSB2.6 Journalise transactions, post, prepare a trial balance and financial statements. LO3, 5, 6, 7, 8 The trial balance of Wellington Dry Cleaners on 30 June is given here:WELLINGTON DRY CLEANERS Trial balance as at 30 June 2019 No. Account name Debit Credit 100 Cash $25 064 110 Accounts
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