A company has the following elements in the General Ledger: 2813 Depreciation of plant, machinery and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company has the following elements in the General Ledger: 2813 "Depreciation of plant, machinery and motor vehicles" IBC 5.000 lei 2131 Plant and machinery" IBD 25.000 lei 371 "Goods purchased for resale" IBD 5.000 lei 5311 "Petty cash in lei" IBD 8.000 lei 1621 ,,Long-term bank loans" IBC 20.000 lei 1012 "Subscribed capital paid" IBC 3.000 lei 1061 "Legal reserve" IBC 600 lei 1171 "Profit/loss carried forward" (profit) IBC 9.400 lei. Requirements: 1. Identify the correct accounts and accounting equations (formulas) generated by the following operations; 2. Reflect these operations in the General Ledger and in the Trial Balance. Accounting operations/transactions 1. Acquisition of materials in the form of small inventories, worth 1.000 lei, VAT 19%; 2. Pay the debt towards the supplier in cash; 3. Use the materials in the form of small inventories; 4. Sell merchandise (goods purchased for resale), worth 8.000 lei, VAT 19%; keep in mind that the value of the goods was 4.000 lei, when they were bought; 5. The client pays for the merchandise in the bank account; 6. Reflect the depreciation of Plant and machinery, worth 5.000 lei; 7. Reimburse (pay back) part of the long term bank loans, worth 2.000 lei, from the bank account; 8. VAT settlement; 9. Clearance of the expenses/revenues accounts and determine the profit/loss. A company has the following elements in the General Ledger: 2813 "Depreciation of plant, machinery and motor vehicles" IBC 5.000 lei 2131 Plant and machinery" IBD 25.000 lei 371 "Goods purchased for resale" IBD 5.000 lei 5311 "Petty cash in lei" IBD 8.000 lei 1621 ,,Long-term bank loans" IBC 20.000 lei 1012 "Subscribed capital paid" IBC 3.000 lei 1061 "Legal reserve" IBC 600 lei 1171 "Profit/loss carried forward" (profit) IBC 9.400 lei. Requirements: 1. Identify the correct accounts and accounting equations (formulas) generated by the following operations; 2. Reflect these operations in the General Ledger and in the Trial Balance. Accounting operations/transactions 1. Acquisition of materials in the form of small inventories, worth 1.000 lei, VAT 19%; 2. Pay the debt towards the supplier in cash; 3. Use the materials in the form of small inventories; 4. Sell merchandise (goods purchased for resale), worth 8.000 lei, VAT 19%; keep in mind that the value of the goods was 4.000 lei, when they were bought; 5. The client pays for the merchandise in the bank account; 6. Reflect the depreciation of Plant and machinery, worth 5.000 lei; 7. Reimburse (pay back) part of the long term bank loans, worth 2.000 lei, from the bank account; 8. VAT settlement; 9. Clearance of the expenses/revenues accounts and determine the profit/loss.
Expert Answer:
Answer rating: 100% (QA)
1 Identified correct account Depreciation of plant machinery and motor vehicles are expenses account ... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
Students also viewed these accounting questions
-
A company has the following data: net sales, $405,000; cost of goods sold, $220,000; selling expenses, $90,000; general and administrative expenses, $60,000; interest expense, $4,000; and interest...
-
A company has the following ï¬nancial information: To maximize shareholder wealth, the company would most likely establish a hurdle rate that would limit acceptance of projects to only those...
-
A company has the following shareholders equity section: Ordinary shares: par = 2 CU; 250,000 shares authorized; 100,000 shares issued and outstanding .. 200,000 Share premium . 30,000 Retained...
-
Prove that, the area of the traverse is equal to the algebraic sum of the products of the total latitude of each point and algebraic sum of the departures of the lines meeting at that point.
-
Which standards setting body has the authority for establishing GAAP for colleges and universities? Q17-2 What financial statements must be presented by a government university that engages in only...
-
The level of chemical pollution in a lake is 4.50 ppb (parts per billion). If the level increases by 0.20 ppb in the following month and by 5.0% less each month thereafter, what will be the maximum...
-
After determining that computer controls are valid, Hastings is reviewing the sales system of Rosco Corporation to determine how computer assisted audit techniques may be used to assist in performing...
-
Best Buy Co., Inc. s consolidated balance sheets from its 2011 annual report are presented in Exhibit 5- 3. Required a. Using the balance sheets, prepare a vertical common- size analysis for 2011 and...
-
10. Two converging lenses, each with a focal length of 0.12 m, are used in combination to form an image of an object that is located 0.36 m to the left of the left lens in the pair. The distance...
-
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for National Intercable Company. Additional information from NIC?s accounting records is provided...
-
Vizy is a fashion wear manufacturer. They manufacture the products in factories in Asia and Europe (and ship to the port of Los Angeles and Savannah, respectively). The products are then shipped to...
-
Consider the function f(x) := 1 x. If the function is one-to-one, give its inverse in the box below, writing the inverse in the format "y=m*x+b" without quotation marks and replacing m and b by their...
-
10. f(x) = x + 1 has domain x E R,x 0. Find x, if (((x)) + (x) 1) = 7
-
1. A person standing on a tall building shoots up a toy rocket. The rocket travels in a parabolic path and ultimately hits the ground. The height of the rocket while in the air after t seconds is...
-
Suppose that you are the only income earner, and you have a good job guaranteed to give you your current (family) income every year for life. You are given the opportunity to take a new and equally...
-
Find two fourier expansions for the function h(x) = sin(x). In one expansion, all the sine terms should have zero as their coefficient. In the other expansion, all the cosine terms should have zero...
-
What are the Japanese Yen to Canadian Dollar Cross-rates (both ways)? Which currency is stronger, and which one is weaker? How do you know that? Explain.(b)What is the South African Rand to New...
-
Suppose the spot and six-month forward rates on the Norwegian krone are Kr 5.78 and Kr 5.86, respectively. The annual risk-free rate in the United States is 3.8 percent, and the annual risk-free rate...
-
Tulip Corporation issued 16,000 shares of its $1 par value common stock in exchange for land that had a fair market value of $100,000. Prepare the journal entries necessary to record the issuance of...
-
Using the data in SE2, calculate the cost of ending inventory and cost of goods sold according to the average-cost method under the periodic inventory system. (Round final answer to the nearest...
-
Layton Davis oversees projects for Pace Construction Company. Recently, the companys controller sent him a performance report regarding the construction of the Highlands Bank, a project that Davis...
-
Two bonding agents, \(A\) and \(B\), are available for making a laminated beam. Of 50 beams made with Agent \(A, 11\) failed a stress test, whereas 19 of the 50 beams made with Agent \(B\) failed. At...
-
Cooling pipes at three nuclear power plants are investigated for deposits that would inhibit the flow of water. From 30 randomly selected spots at each plant, 13 from the first plant, 8 from the...
-
With reference to Exercise 10.57, find a large sample 95% confidence interval for the true difference of the probabilities of failure. Data From Exercise 10.57 10.57 Two bonding agents, A and B, are...
Study smarter with the SolutionInn App