The company's opening balance sheet was as follows: Cash 13,000 Checking account 10,000 Trade receivables 32,000 Stock
Question:
The company's opening balance sheet was as follows:
Cash 13,000
Checking account 10,000
Trade receivables 32,000
Stock 10,000
Stock 35,000
In total 100,000
Own capital 45,000
Loans 28,000
Accounts payable 24 000
Tax liabilities 3,000
In total 100,000
Create an account opening and record the following account transactions in the account grids:
2.9. Buy a new cash register on credit with € 10,000.
3.9. Rental income from the part of the commercial apartment leased to the current account is € 900
5.9. The entrepreneur takes € 1,000 from the cash register for his own use.
7.9. The rent for the commercial apartment will be paid from September by a current account of € 1,600.
15.9. Buy goods for sale on credit of € 5,500.
18.9. A payment of € 2,500 will be received from Mrs. May. Execution will be credited to the checking account.
22.9. Tax liabilities for the previous financial year are paid from a current account of € 3,000.
23.9. The trade payable to Stuff Ltd is paid from a current account of € 1,800
27.9. An electricity bill of € 300 is paid at checkout. September cash sales of € 9,000 will be recorded.
30.9. An invoice will be received for advertisements published in September in a local newspaper for € 1,000.
Financial statements 30.9.20x1 (the financial year was 1 month long): Inventory value 30.9. was € 27,000. Equipment is depreciated at 25% of the remaining expenditure per year. Close the accounts to the profit and loss account. Prepare an income statement and balance sheet.
Solution options: Select the correct option (s) Select one or more:
a. The loan account balance is 28,000.
b. The final balance of the stock account is € 27,000 and it will be debited to the income statement.
c. The final balance of the cash account is 20,700 and it is debited to the balance account.
d. The final balance of the equity account is € 44,000
e. The balance sheet total is 103783.33 €
f. The loss for the financial year is 11,500 €
g. The balance sheet total is € 110,700.
Expert Answer:
Lets go through the provided account transactions and update the account grids accordingly After that well calculate the final balances and check the ... View the full answer
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
