Balance Sheet as of March 31st 2016is given below Assets Building Furniture Inventories Accounts Rec. Cash Bank

Balance Sheet as of March 31st 2016is given below  

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Assets Building Furniture Inventories Accounts Rec. Cash Bank TOTAL Amount Liabilities + Owners Equity 1,000,000 6% Loan 100,000 Accounts Payable 200,000 300,000 Common Stock 400,000 APIC 2,000,000 TOTAL Amount 800,000 200,000 600,000 400,000 2,000,000 The following transactions took place during the year ended March 31st 2017: 1. The company purchased inventory worth $800,000. 80% of inventory was purchased on credit and the remaining 20% was purchased for cash. 2. The company sold inventory worth $900,000 for $1,800,000. 20% of the sales were made on credit, the remaining 80% were cash sales. 3. During the year $320,000 were collected from our debtors. 4. We paid of Accounts Payables worth 840,000 5. On January 1 2017 we received $240,000 in advance from a customer for goods and services to be provided equally over the following 12 months. 6. On September 30th 2016, we paid rent of $120,000 for building for the next 24 months. 7. Interest on 6% loan is not paid in cash in the current year. 8. Salaries worth $140,000 were paid in the current year. Salary worth $20000 for the week ending on 31st March 2017 has not yet been paid. Prepare the Balance Sheet as of March 31st 2017 Assets Building Furniture Inventories Accounts Rec. Cash Bank TOTAL Amount Liabilities + Owners Equity 1,000,000 6% Loan 100,000 Accounts Payable 200,000 300,000 Common Stock 400,000 APIC 2,000,000 TOTAL Amount 800,000 200,000 600,000 400,000 2,000,000 The following transactions took place during the year ended March 31st 2017: 1. The company purchased inventory worth $800,000. 80% of inventory was purchased on credit and the remaining 20% was purchased for cash. 2. The company sold inventory worth $900,000 for $1,800,000. 20% of the sales were made on credit, the remaining 80% were cash sales. 3. During the year $320,000 were collected from our debtors. 4. We paid of Accounts Payables worth 840,000 5. On January 1 2017 we received $240,000 in advance from a customer for goods and services to be provided equally over the following 12 months. 6. On September 30th 2016, we paid rent of $120,000 for building for the next 24 months. 7. Interest on 6% loan is not paid in cash in the current year. 8. Salaries worth $140,000 were paid in the current year. Salary worth $20000 for the week ending on 31st March 2017 has not yet been paid. Prepare the Balance Sheet as of March 31st 2017

Answer rating: 100% (QA)

Based on the information provided and the transactions that took place during the year we can update the balance sheet accordingly 1 Inventory purchased for 800000 80 on credit and 20 for cash Credit ... View the full answer