Corporation X just opened business on Jan 1 2021 by a contribution in cash from its shareholders, which was entirely paid of 3,000$. X receives a bank loan on Jan 2 - for 2,000$.. It repays by the end of the year 250$ on the bank loan. Interest on the bank loan has accrued by year end for 10$, but it is not paid by the end of the year. On Jan . 5 ,X buys merchandise, for cash, for 700$. X sells on account all the merchandise on hand for 1,000$, on Nov. 10. X also purchases for cash a telephone, for 500$, on Nov. 11. X accountant depreciates the telephone by the year end for 50$. X sells the telephone , on 30 Dec. 2021, for 475$, in cash.

Calculate:

1. the ending balance of accumulated depreciation
2. the balance sheet equality
3. The profit from operating activities
4. The ending balance of owners equity
5. the ending balance of bank loans
6. the ending balance of equipment
7. the ending balance of interest payable
8. the ending balance of merchandise
9. the profit for the year – the tax expense shall not be taken into account
10. the ending balance of total liabilities

Answer rating: 100% (QA)

To calculate the various balances and figures based on the given information lets go step by step 1 Ending Balance of Accumulated Depreciation The tel... View the full answer