The business of Chan and Tan Fruit Bowl had the following Balance Sheet items as at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The business of Chan and Tan Fruit Bowl had the following Balance Sheet items as at April 30 2021 Assets, Liabilities and Capital Motor vehicles 70 000 Debtors 20 000 Premises 600 000 Trade creditors (for stock purchases) 25 000 Stock 22 000 *Loan from Rinklett Finance 50 000 Fixtures & fittings 35 000 Prepaid rent 4 000 Cash at bank 20 000 Equipment 30 000 **Mortgage Loan from Grass Bank 200 000 Capital 526 000 Additional information * Loan from Rinklett Finance must be paid back in full within the next 9 months ** Mortgage loan from Grass Bank will be paid back over the next 10 years, Transactions for the month of May 2021 Cash Transactions %24 Loan repayment - Rinklett Finance Principal 2 000 Interest 900 Mortgage Loan repayment – Grass Bank Principal 3 000 Interest 1 200 Cash sales 120000 Cash paid to creditors 26 000 Wages paid 8 000 Purchase of new equipment 12 000 Insurance paid 1 000 Cash drawings 8 00 Collections from debtors 8 000 Other office expenses 1 500 Advertising 600 Purchase of another motor vehicle (cash deposit) – see details below 5 000 Credit Transactions 2$ Credit sales 30 000 Credit purchases of stock from trade creditors 40 000 Additional advertising expenses on 30-day credit terms (include in May expenses) 3 000 Purchase of another motor vehicle (partly financed by a loan) – see details below 25 000 Additional information: • Depreciation of Equipment at 25% p.a. Depreciation of fixtures & fittings at 8% p. a. Depreciation of motor vehicles at 15% p. a. Wages owing (not yet paid) for the last week of May 2021 is $3 000 • Rent for the month of May is $1 200 • Stock on Hand at end of May 2021 is $14 000 • Purchase of another Motor Vehicle was made at the beginning of the month of May, (total value - $30 000), and was financed by a $5 000 cash deposit and a $25 000 loan from The No-Bias Bank, to be repaid over 5 years Prepare a properly classified Balance Sheet for the end of May 2021 The business of Chan and Tan Fruit Bowl had the following Balance Sheet items as at April 30 2021 Assets, Liabilities and Capital Motor vehicles 70 000 Debtors 20 000 Premises 600 000 Trade creditors (for stock purchases) 25 000 Stock 22 000 *Loan from Rinklett Finance 50 000 Fixtures & fittings 35 000 Prepaid rent 4 000 Cash at bank 20 000 Equipment 30 000 **Mortgage Loan from Grass Bank 200 000 Capital 526 000 Additional information * Loan from Rinklett Finance must be paid back in full within the next 9 months ** Mortgage loan from Grass Bank will be paid back over the next 10 years, Transactions for the month of May 2021 Cash Transactions %24 Loan repayment - Rinklett Finance Principal 2 000 Interest 900 Mortgage Loan repayment – Grass Bank Principal 3 000 Interest 1 200 Cash sales 120000 Cash paid to creditors 26 000 Wages paid 8 000 Purchase of new equipment 12 000 Insurance paid 1 000 Cash drawings 8 00 Collections from debtors 8 000 Other office expenses 1 500 Advertising 600 Purchase of another motor vehicle (cash deposit) – see details below 5 000 Credit Transactions 2$ Credit sales 30 000 Credit purchases of stock from trade creditors 40 000 Additional advertising expenses on 30-day credit terms (include in May expenses) 3 000 Purchase of another motor vehicle (partly financed by a loan) – see details below 25 000 Additional information: • Depreciation of Equipment at 25% p.a. Depreciation of fixtures & fittings at 8% p. a. Depreciation of motor vehicles at 15% p. a. Wages owing (not yet paid) for the last week of May 2021 is $3 000 • Rent for the month of May is $1 200 • Stock on Hand at end of May 2021 is $14 000 • Purchase of another Motor Vehicle was made at the beginning of the month of May, (total value - $30 000), and was financed by a $5 000 cash deposit and a $25 000 loan from The No-Bias Bank, to be repaid over 5 years Prepare a properly classified Balance Sheet for the end of May 2021 The business of Chan and Tan Fruit Bowl had the following Balance Sheet items as at April 30 2021 Assets, Liabilities and Capital Motor vehicles 70 000 Debtors 20 000 Premises 600 000 Trade creditors (for stock purchases) 25 000 Stock 22 000 *Loan from Rinklett Finance 50 000 Fixtures & fittings 35 000 Prepaid rent 4 000 Cash at bank 20 000 Equipment 30 000 **Mortgage Loan from Grass Bank 200 000 Capital 526 000 Additional information * Loan from Rinklett Finance must be paid back in full within the next 9 months ** Mortgage loan from Grass Bank will be paid back over the next 10 years, Transactions for the month of May 2021 Cash Transactions %24 Loan repayment - Rinklett Finance Principal 2 000 Interest 900 Mortgage Loan repayment – Grass Bank Principal 3 000 Interest 1 200 Cash sales 120000 Cash paid to creditors 26 000 Wages paid 8 000 Purchase of new equipment 12 000 Insurance paid 1 000 Cash drawings 8 00 Collections from debtors 8 000 Other office expenses 1 500 Advertising 600 Purchase of another motor vehicle (cash deposit) – see details below 5 000 Credit Transactions 2$ Credit sales 30 000 Credit purchases of stock from trade creditors 40 000 Additional advertising expenses on 30-day credit terms (include in May expenses) 3 000 Purchase of another motor vehicle (partly financed by a loan) – see details below 25 000 Additional information: • Depreciation of Equipment at 25% p.a. Depreciation of fixtures & fittings at 8% p. a. Depreciation of motor vehicles at 15% p. a. Wages owing (not yet paid) for the last week of May 2021 is $3 000 • Rent for the month of May is $1 200 • Stock on Hand at end of May 2021 is $14 000 • Purchase of another Motor Vehicle was made at the beginning of the month of May, (total value - $30 000), and was financed by a $5 000 cash deposit and a $25 000 loan from The No-Bias Bank, to be repaid over 5 years Prepare a properly classified Balance Sheet for the end of May 2021 The business of Chan and Tan Fruit Bowl had the following Balance Sheet items as at April 30 2021 Assets, Liabilities and Capital Motor vehicles 70 000 Debtors 20 000 Premises 600 000 Trade creditors (for stock purchases) 25 000 Stock 22 000 *Loan from Rinklett Finance 50 000 Fixtures & fittings 35 000 Prepaid rent 4 000 Cash at bank 20 000 Equipment 30 000 **Mortgage Loan from Grass Bank 200 000 Capital 526 000 Additional information * Loan from Rinklett Finance must be paid back in full within the next 9 months ** Mortgage loan from Grass Bank will be paid back over the next 10 years, Transactions for the month of May 2021 Cash Transactions %24 Loan repayment - Rinklett Finance Principal 2 000 Interest 900 Mortgage Loan repayment – Grass Bank Principal 3 000 Interest 1 200 Cash sales 120000 Cash paid to creditors 26 000 Wages paid 8 000 Purchase of new equipment 12 000 Insurance paid 1 000 Cash drawings 8 00 Collections from debtors 8 000 Other office expenses 1 500 Advertising 600 Purchase of another motor vehicle (cash deposit) – see details below 5 000 Credit Transactions 2$ Credit sales 30 000 Credit purchases of stock from trade creditors 40 000 Additional advertising expenses on 30-day credit terms (include in May expenses) 3 000 Purchase of another motor vehicle (partly financed by a loan) – see details below 25 000 Additional information: • Depreciation of Equipment at 25% p.a. Depreciation of fixtures & fittings at 8% p. a. Depreciation of motor vehicles at 15% p. a. Wages owing (not yet paid) for the last week of May 2021 is $3 000 • Rent for the month of May is $1 200 • Stock on Hand at end of May 2021 is $14 000 • Purchase of another Motor Vehicle was made at the beginning of the month of May, (total value - $30 000), and was financed by a $5 000 cash deposit and a $25 000 loan from The No-Bias Bank, to be repaid over 5 years Prepare a properly classified Balance Sheet for the end of May 2021 The business of Chan and Tan Fruit Bowl had the following Balance Sheet items as at April 30 2021 Assets, Liabilities and Capital Motor vehicles 70 000 Debtors 20 000 Premises 600 000 Trade creditors (for stock purchases) 25 000 Stock 22 000 *Loan from Rinklett Finance 50 000 Fixtures & fittings 35 000 Prepaid rent 4 000 Cash at bank 20 000 Equipment 30 000 **Mortgage Loan from Grass Bank 200 000 Capital 526 000 Additional information * Loan from Rinklett Finance must be paid back in full within the next 9 months ** Mortgage loan from Grass Bank will be paid back over the next 10 years, Transactions for the month of May 2021 Cash Transactions %24 Loan repayment - Rinklett Finance Principal 2 000 Interest 900 Mortgage Loan repayment – Grass Bank Principal 3 000 Interest 1 200 Cash sales 120000 Cash paid to creditors 26 000 Wages paid 8 000 Purchase of new equipment 12 000 Insurance paid 1 000 Cash drawings 8 00 Collections from debtors 8 000 Other office expenses 1 500 Advertising 600 Purchase of another motor vehicle (cash deposit) – see details below 5 000 Credit Transactions 2$ Credit sales 30 000 Credit purchases of stock from trade creditors 40 000 Additional advertising expenses on 30-day credit terms (include in May expenses) 3 000 Purchase of another motor vehicle (partly financed by a loan) – see details below 25 000 Additional information: • Depreciation of Equipment at 25% p.a. Depreciation of fixtures & fittings at 8% p. a. Depreciation of motor vehicles at 15% p. a. Wages owing (not yet paid) for the last week of May 2021 is $3 000 • Rent for the month of May is $1 200 • Stock on Hand at end of May 2021 is $14 000 • Purchase of another Motor Vehicle was made at the beginning of the month of May, (total value - $30 000), and was financed by a $5 000 cash deposit and a $25 000 loan from The No-Bias Bank, to be repaid over 5 years Prepare a properly classified Balance Sheet for the end of May 2021 The business of Chan and Tan Fruit Bowl had the following Balance Sheet items as at April 30 2021 Assets, Liabilities and Capital Motor vehicles 70 000 Debtors 20 000 Premises 600 000 Trade creditors (for stock purchases) 25 000 Stock 22 000 *Loan from Rinklett Finance 50 000 Fixtures & fittings 35 000 Prepaid rent 4 000 Cash at bank 20 000 Equipment 30 000 **Mortgage Loan from Grass Bank 200 000 Capital 526 000 Additional information * Loan from Rinklett Finance must be paid back in full within the next 9 months ** Mortgage loan from Grass Bank will be paid back over the next 10 years, Transactions for the month of May 2021 Cash Transactions %24 Loan repayment - Rinklett Finance Principal 2 000 Interest 900 Mortgage Loan repayment – Grass Bank Principal 3 000 Interest 1 200 Cash sales 120000 Cash paid to creditors 26 000 Wages paid 8 000 Purchase of new equipment 12 000 Insurance paid 1 000 Cash drawings 8 00 Collections from debtors 8 000 Other office expenses 1 500 Advertising 600 Purchase of another motor vehicle (cash deposit) – see details below 5 000 Credit Transactions 2$ Credit sales 30 000 Credit purchases of stock from trade creditors 40 000 Additional advertising expenses on 30-day credit terms (include in May expenses) 3 000 Purchase of another motor vehicle (partly financed by a loan) – see details below 25 000 Additional information: • Depreciation of Equipment at 25% p.a. Depreciation of fixtures & fittings at 8% p. a. Depreciation of motor vehicles at 15% p. a. Wages owing (not yet paid) for the last week of May 2021 is $3 000 • Rent for the month of May is $1 200 • Stock on Hand at end of May 2021 is $14 000 • Purchase of another Motor Vehicle was made at the beginning of the month of May, (total value - $30 000), and was financed by a $5 000 cash deposit and a $25 000 loan from The No-Bias Bank, to be repaid over 5 years Prepare a properly classified Balance Sheet for the end of May 2021
Expert Answer:
Answer rating: 100% (QA)
Chan and Tan Fruit Bowl Classified balance sheet as at May 31 2021 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
The Marino Company had the following balance sheet on January 1, 2007: On January 2, 2007 the Paul Company purchased the Marino Company by acquiring all its outstanding shares for $300,000 cash. On...
-
The Marino Company had the following balance sheet on January 1, 2010: On January 2, 2010, the Paul Company purchased the Marino Company by acquiring all its outstanding shares for $300,000 cash. On...
-
Classify the following balance sheet items as current or noncurrent: Retained earnings Bonds payable Accounts payable Accrued wages payable Prepaid expenses Accounts receivable Plant and equipment...
-
How does a project manager calculate start and finish times?
-
How can a business owner identify risk exposure?
-
Sales for the Australian trading company Rooney Enterprises Ltd. during the last financial year (2008) amounted to $3.5 million. The company has a 5-year contract to provide the plastic studs that...
-
Show that if \(\mathbf{X}^{\prime} \mathbf{X}\) is in correlation form, \(\boldsymbol{\Lambda}\) is the diagonal matrix of eigenvalues of \(\mathbf{X}^{\prime} \mathbf{X}\), and \(\mathbf{T}\) is the...
-
Greener Grass Fertilizer Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units...
-
The job of people who work in advertising agency Media departments is to recommend media selection, programming, and plans that are in the best interest of their clients. The media plans they...
-
Balance sheets for P Company and S Company on August 1, 2019, are as follows: Required: Prepare a workpaper for a consolidated balance sheet for P Company and its subsidiary on August 1, 2019, taking...
-
(c) In order to combat the current outbreak of Covid-19 disease, a pharmaceutical company plans to create a drug of Covid-19 in capsule form. The capsule consists of a cylinder with h cm length and...
-
Your manager asks you to write a type of report not illustrated in this chapter; for example, a compliance report. How would you go about learning the key features of a compliance report and the type...
-
What are five types of evidence you can use in a logical argument?
-
Explain why you should send a thank-you note after all your employment interviews, even with companies you are no longer interested in pursuing.
-
Why is direct organization usually the better choice for business communication?
-
Imagine you have been hired by a global company that is holding a two-week orientation for all new employees at the head office in San Francisco. You will be staying in a hotel for two weeks, and you...
-
Use the method of elimination to solve the following system of equations. If the system is dependent, express the solution set in terms of one of the variables. Leave all fractional answers in...
-
The manager for retail customers, Katie White, wants to hear your opinion regarding one business offer she has received from an entrepreneur who is starting a mobile phone app called Easy Money. The...
-
What is the book value of an asset? Discuss.
-
The following are several independent errors made by a company that uses the periodic inventory system: 1. Goods in transit, purchased on credit and shipped FOB destination, $10,000, were included in...
-
Under the direct method, what are the most common cash inflows from and the most common cash outflows for operating activities in a companys statement of cash flows?
-
In rush-hour traffic, the car in front of you suddenly puts on the brakes. You apply your brakes \(0.50 \mathrm{~s}\) later. The accelerations of the two cars are the same. Does the distance between...
-
Two cars are moving at \(97 \mathrm{~km} / \mathrm{h}\), one behind the other, on a rural road. A deer jumps in front of the lead car, and its driver slams on the brakes and stops. What minimum...
-
You jump on your bicycle, ride at a constant acceleration of \(0.60 \mathrm{~m} / \mathrm{s}^{2}\) for \(20 \mathrm{~s}\), and then continue riding at a constant velocity for \(200 \mathrm{~m}\). You...
Study smarter with the SolutionInn App