Exercise V The Accounting Cycle - Problem Set ABC Company Ltd. Balance Sheet on Nov. 30, 2020 Assets Equipment Land Office Supplies Inventory gedimaka jadrolarito Accounts Receivable Cash, Bank Prepaid expenses Total assets 2 000 2 500 1 200 3 600 3 900 3 000 16 200 Equities Paid-in Capital Retained Earnings Loan Payable pe Tax payables Accounts payable Salary payable Unearned rent revenue Total equities Summary of transactions during December: 1. Cash-Purchase of 1 800 of Office Supplies Inventory 3 000 1 000 2 400 900 3 700 1 200 4 000 16 200 2. Performed consulting services, for which we received 2,100 cash immediately. 3. Received an invoice for a series of advertisements, 1 200, that appeared in the local news during December and will be paid in January. 4. Performed advertisement services for Customer XYZ, for which we will receive 3,000 on 2 month credit sale. 5. Customer XYZ made a claim on the advertisement services we provided to him and we accepted it as we have made a 10% allowance to the invoice value. 6. Paid salaries to employees of 1 200 for December. 7. Received an invoice for external services of 1 400 for December to be paid with 60 day credit term 8. Paid outstanding tax payables. 9. Paid trade creditors 1,300. 10. Account for salaries that have been executed in December for the amount of 1 300 to be paid in January. 11. The cost of office supplies used during December is 1,100. 12. In the beginning of September 2014 a subscription rights for local newspaper magazine of 6 000 was paid for half-a year term in advance; 13. In the beginning of October 2014 company receives rent for 6 months in advance, 6,000 14. At the end of the month Company repaid to the Bank credit tranche 500 and paid interest charges (interest rate as of 10 % p.a.) 15. Depreciation of equipment for December amounts to 100.

Exercise V Summary of transactions during Decembert 1. Cash-Purchase of C1800 of Otfice 5tipplies Irwentary 2. Ferrarmed cohstiting services, for which we recelyed C2,200 cash immedibtoly. 2. Perracmed constiting fervices, for which in invoice for it series of adwertisemeats, C1200, that appeared in the focal news durang December and will be pold in Jandary. 4. Performed advertisemont sorvices for Qhistofner XFZ, fod wh ch we wil recelve 3,000 on 2 month credit sale. 5. Custorier xr miede a doim on the adverisement sorvices we provided to him cust wa accopted it as we have made 8 fopt aliewace to the ipveice value. 6. Pald ssiaries to employees of c-1.200 for December. 6. Received an invoice for enternal seivices of C 1400 for December to be phid with 4.t day credit term 9. faid outstancing tox payabies 10. Paid trade creditors e 1,300 . 10. Acrount for salaries that have been executed in December far the ainount of C 1300 to be pald in lanuary. 11. The coet of office rupplies used during Deember is C 1,100. 12. In the begining of September 2014 a subscription righti for locat newspeper nagozire of c 6000 was padd for half-a vae term in odvance, 13. In the beginning of October 2014 cecmyary rezelkes ingt far 6 menths in advance, 66,000 14. At the end of the menth Gompony fepaid to the Beak credit tranche 500 ard paid intorest charges (interest rate as ot io th pia.) 15. Depreciation of equiment for December ameunts to C100. Exercise V Summary of transactions during Decembert 1. Cash-Purchase of C1800 of Otfice 5tipplies Irwentary 2. Ferrarmed cohstiting services, for which we recelyed C2,200 cash immedibtoly. 2. Perracmed constiting fervices, for which in invoice for it series of adwertisemeats, C1200, that appeared in the focal news durang December and will be pold in Jandary. 4. Performed advertisemont sorvices for Qhistofner XFZ, fod wh ch we wil recelve 3,000 on 2 month credit sale. 5. Custorier xr miede a doim on the adverisement sorvices we provided to him cust wa accopted it as we have made 8 fopt aliewace to the ipveice value. 6. Pald ssiaries to employees of c-1.200 for December. 6. Received an invoice for enternal seivices of C 1400 for December to be phid with 4.t day credit term 9. faid outstancing tox payabies 10. Paid trade creditors e 1,300 . 10. Acrount for salaries that have been executed in December far the ainount of C 1300 to be pald in lanuary. 11. The coet of office rupplies used during Deember is C 1,100. 12. In the begining of September 2014 a subscription righti for locat newspeper nagozire of c 6000 was padd for half-a vae term in odvance, 13. In the beginning of October 2014 cecmyary rezelkes ingt far 6 menths in advance, 66,000 14. At the end of the menth Gompony fepaid to the Beak credit tranche 500 ard paid intorest charges (interest rate as ot io th pia.) 15. Depreciation of equiment for December ameunts to C100