Marvelous Music provides music lessons to student musicians. The company hired a new finance manager to...
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Marvelous Music provides music lessons to student musicians. The company hired a new finance manager to prepare Financial information of the company for decision making. The Finance manager was a program developer and has no Knowledge about accounting. He was asked to prepare all the financial Statements showing cash activities, detailed profit related activities, further investment and financial position of the year, for the internal auditor who is visiting the company in 2 days for company's record checking . He prepared the only following statement dated December 31, 2020 that contained a number of errors. (Note: all the values of accounts are correct) Marvelous Music Balance Sheet and Income of Company For the month ended on 31 December 2020 Account payable Admission fees revenue 3,600 33,000 20,000 1,000 3,400 18,450 700 121,250 Account receivable Cash 2,100 15,800 7,000 Capital Stock 1,000 24,000 21,550 1,200 Interest payable 180,000 Lesson Fee Revenue Earned Depreciation Expense: Music Equipment Dividends Dividends payable Income Tax payable Insurance payable Income Tax Expense Insurance expense Interest Expense Music Equipment Prepaid insurance Prepaid Rent Rent expense Salaries expense Sheet music supplies Sheet music supplies expense Utilities expense 6,150 3,000 Retained Earnings 16,500 Salaries payable 37,270 Unearned Lesson Revenue Note payable 15,000 36,600 70,000 2,000 650 780 8,000 ТОTAL 325,000 TOTAL 325,000 Instructions: (10 marks) Prepare the correct financial statement that shows the financial position of the company of this year using the data given above (using proper format) Marvelous Music provides music lessons to student musicians. The company hired a new finance manager to prepare Financial information of the company for decision making. The Finance manager was a program developer and has no Knowledge about accounting. He was asked to prepare all the financial Statements showing cash activities, detailed profit related activities, further investment and financial position of the year, for the internal auditor who is visiting the company in 2 days for company's record checking . He prepared the only following statement dated December 31, 2020 that contained a number of errors. (Note: all the values of accounts are correct) Marvelous Music Balance Sheet and Income of Company For the month ended on 31 December 2020 Account payable Admission fees revenue 3,600 33,000 20,000 1,000 3,400 18,450 700 121,250 Account receivable Cash 2,100 15,800 7,000 Capital Stock 1,000 24,000 21,550 1,200 Interest payable 180,000 Lesson Fee Revenue Earned Depreciation Expense: Music Equipment Dividends Dividends payable Income Tax payable Insurance payable Income Tax Expense Insurance expense Interest Expense Music Equipment Prepaid insurance Prepaid Rent Rent expense Salaries expense Sheet music supplies Sheet music supplies expense Utilities expense 6,150 3,000 Retained Earnings 16,500 Salaries payable 37,270 Unearned Lesson Revenue Note payable 15,000 36,600 70,000 2,000 650 780 8,000 ТОTAL 325,000 TOTAL 325,000 Instructions: (10 marks) Prepare the correct financial statement that shows the financial position of the company of this year using the data given above (using proper format)
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Marvelous Music Income Statement Balance sheet For the month ended 31122020 As at 31122020 Lesson Fe... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
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