Gogoda Enterprise offers office rental and cleaning services to their client. The following is adjusted trial...

  

Transcribed Image Text:

Gogoda Enterprise offers office rental and cleaning services to their client. The following is adjusted trial balance of Gogoda Enterprise for the year ended 31 December 2021: Gogoda Enterprise Adjusted Trial Balance 31 December 2021 i) ii) iii) Cash Accounts Receivable Prepaid Insurance Building and Equipment Accumulated Depreciation- Building and Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Capital Stock Retained Earnings Cleaning Service Revenue Rent Revenue Salaries and Wages Expense Sundry Expense Insurance Expense Utilities Expense Depreciation Expense - Building and Equipment Dr. RM 15,400 15,000 7,500 700,000 8,100 1,600 21,500 18,000 70,000 857,100 Cr. RM 280,000 5,800 1,100 800 465,000 30,500 35,200 38,700 857,100 You are required to: Calculate total revenues for the year ended 31 December 2021. (3 marks) Calculate total expenses for the year ended 31 December 2021. (6 marks) Prepare the Balance Sheet as at 31 December 2021. (13 marks) B. State one (1) limitation of the Balance Sheet. (2 marks) C. ITexpert Company sells computers, laptops and technology related accessories with financial year ended 31 December every year. ITexpert had revenues of $360,000 in 2021. The company has not collected on $35,000 of its sales, and still owes $40,000 on $150,000 of inventory they purchased. There was $31,000 inventory on hand at the end of the year. The opening inventory was $23,000. No sales return during the year. The company paid $25,000 in salaries. The owner invested $40,000 in the business and $25,000 was borrowed on a five-year note. The company paid $3,000 in interest that was the amount owed for the year of 2021 and paid $8,000 for a two-year insurance policy effective on 1 January 2021 until 31 December 2022. Rental expenses and depreciation expenses during the year were $23,000 and $2,440 respectively. Prepare the income statement of Itex Company for the year ended 31 December 2021. (16 marks) Gogoda Enterprise offers office rental and cleaning services to their client. The following is adjusted trial balance of Gogoda Enterprise for the year ended 31 December 2021: Gogoda Enterprise Adjusted Trial Balance 31 December 2021 i) ii) iii) Cash Accounts Receivable Prepaid Insurance Building and Equipment Accumulated Depreciation- Building and Equipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Capital Stock Retained Earnings Cleaning Service Revenue Rent Revenue Salaries and Wages Expense Sundry Expense Insurance Expense Utilities Expense Depreciation Expense - Building and Equipment Dr. RM 15,400 15,000 7,500 700,000 8,100 1,600 21,500 18,000 70,000 857,100 Cr. RM 280,000 5,800 1,100 800 465,000 30,500 35,200 38,700 857,100 You are required to: Calculate total revenues for the year ended 31 December 2021. (3 marks) Calculate total expenses for the year ended 31 December 2021. (6 marks) Prepare the Balance Sheet as at 31 December 2021. (13 marks) B. State one (1) limitation of the Balance Sheet. (2 marks) C. ITexpert Company sells computers, laptops and technology related accessories with financial year ended 31 December every year. ITexpert had revenues of $360,000 in 2021. The company has not collected on $35,000 of its sales, and still owes $40,000 on $150,000 of inventory they purchased. There was $31,000 inventory on hand at the end of the year. The opening inventory was $23,000. No sales return during the year. The company paid $25,000 in salaries. The owner invested $40,000 in the business and $25,000 was borrowed on a five-year note. The company paid $3,000 in interest that was the amount owed for the year of 2021 and paid $8,000 for a two-year insurance policy effective on 1 January 2021 until 31 December 2022. Rental expenses and depreciation expenses during the year were $23,000 and $2,440 respectively. Prepare the income statement of Itex Company for the year ended 31 December 2021. (16 marks)

Answer rating: 100% (QA)

ANSWER Step 1 i Total Revenues for the year ended 31 December 2021 Cleaning Service Revenue 35200 Rent Revenue 38700 Total Revenue 73900 ii Total Expe... View the full answer