4. The West Lake is a retail trader in Black River. The firm has provided the...
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4. The West Lake is a retail trader in Black River. The firm has provided the following accounts details for 2016. Cashbook Receipt from debtors 55,000 Bal b/d 45,000 Cash sales Investment income Disposal of machinery Bal c/d 60,000 Office expense 24,000 22,500 Wages 30,000 11,500 Rent 35,000 106,000 Loan repayment 37,500 Payment to creditors 22,650 Rates 17,600 Loan interest 8,250 Cash purchases 35,000 255,000 255,000 List of balances Details Jan. 01 Dec. 31 Wages owing Investment income owing Stock 4,500 6,000 3,000 5,500 8,250 9,500 Creditors 4,100 6,750 Equipment (book value) 80,000 78,000 Machinery (book value) 95,000 75,000 Motor vehicle (book value) 40,000 36,000 Debtors 5,000 6,500 Office expenses prepaid 4,600 7,200 Rates owing 3,000 5,500 10% Loan 120,000 82,500 Additional notes: i. The machinery that was sold had a book value of 15,000 ii. Discounts of 3,450 were allowed to credit customers Required: a) How much was the capital at January 1, 2016? b) Determine the amount for total sales, and total purchases. c) How much was wages, office expense, and rates for the year? d) How much was investment income for the year? e) What is the gain or loss on the machinery disposed? f) How much is to be charged as depreciation for the equipment, machinery, and motor vehicle for the year? g) Prepare the trial balance as at December 31, 2016. (HOMEWORK) 2 4. The West Lake is a retail trader in Black River. The firm has provided the following accounts details for 2016. Cashbook Receipt from debtors 55,000 Bal b/d 45,000 Cash sales Investment income Disposal of machinery Bal c/d 60,000 Office expense 24,000 22,500 Wages 30,000 11,500 Rent 35,000 106,000 Loan repayment 37,500 Payment to creditors 22,650 Rates 17,600 Loan interest 8,250 Cash purchases 35,000 255,000 255,000 List of balances Details Jan. 01 Dec. 31 Wages owing Investment income owing Stock 4,500 6,000 3,000 5,500 8,250 9,500 Creditors 4,100 6,750 Equipment (book value) 80,000 78,000 Machinery (book value) 95,000 75,000 Motor vehicle (book value) 40,000 36,000 Debtors 5,000 6,500 Office expenses prepaid 4,600 7,200 Rates owing 3,000 5,500 10% Loan 120,000 82,500 Additional notes: i. The machinery that was sold had a book value of 15,000 ii. Discounts of 3,450 were allowed to credit customers Required: a) How much was the capital at January 1, 2016? b) Determine the amount for total sales, and total purchases. c) How much was wages, office expense, and rates for the year? d) How much was investment income for the year? e) What is the gain or loss on the machinery disposed? f) How much is to be charged as depreciation for the equipment, machinery, and motor vehicle for the year? g) Prepare the trial balance as at December 31, 2016. (HOMEWORK) 2
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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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