The following additional information as at December 31, 2022 is available: i) Inventory at December 31,...
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The following additional information as at December 31, 2022 is available: i) Inventory at December 31, 2022 was valued at $132,000. ii) The sole trader took $35,000 of goods for personal use and this was not recorded in the books. iii) Rent expense is prepaid for $30,000. iv) Provision for bad debt is to be set up at a rate of 20% on debtors. v) Salaries and wages was owing by $33,000. vi) Commission received is owing for $15,000. vii) Depreciation rates and methods used to depreciate assets are as follows: Motor Vehicle Balance Method Building 15% Net sales for the year is: Straight Line Method Using the trial balance and the additional information provided, answer the following questions (choose answer from the drop-down listing): 10% Reducing Cost of goods sold for the year is: The trial balance for year ended December 31, 2022 for a sole trader, is shown below: Trial Balance as at December 31, 2022 Capital Sales Purchases Motor Vehicle - at cost Building at cost Drawings Rent Expense Stationery Advertising Salaries & Wages Returns Bad Debts Provision for Bad Debts Provision for Depreciation -Motor Vehicle -Building Carriage Inwards Bank Inventory, January 1, 2022 Commission Received Discounts Debtors Creditors Cash Dr $ 2,200,000 2,100,000 3,000,000 26,000 100,000 45,000 100,000 450,000 16,000 54,500 63,000 75,300 115,000 18,200 170,000 95,000 Cr $ 2,700,000 3,600,000 17,500 28,000 300,000 210,000 6,200 16,300 350,000 The following additional information as at December 31, 2022 is available: i) Inventory at December 31, 2022 was valued at $132,000. ii) The sole trader took $35,000 of goods for personal use and this was not recorded in the books. iii) Rent expense is prepaid for $30,000. iv) Provision for bad debt is to be set up at a rate of 20% on debtors. v) Salaries and wages was owing by $33,000. vi) Commission received is owing for $15,000. vii) Depreciation rates and methods used to depreciate assets are as follows: Motor Vehicle Balance Method Building 15% Net sales for the year is: Straight Line Method Using the trial balance and the additional information provided, answer the following questions (choose answer from the drop-down listing): 10% Reducing Cost of goods sold for the year is: The trial balance for year ended December 31, 2022 for a sole trader, is shown below: Trial Balance as at December 31, 2022 Capital Sales Purchases Motor Vehicle - at cost Building at cost Drawings Rent Expense Stationery Advertising Salaries & Wages Returns Bad Debts Provision for Bad Debts Provision for Depreciation -Motor Vehicle -Building Carriage Inwards Bank Inventory, January 1, 2022 Commission Received Discounts Debtors Creditors Cash Dr $ 2,200,000 2,100,000 3,000,000 26,000 100,000 45,000 100,000 450,000 16,000 54,500 63,000 75,300 115,000 18,200 170,000 95,000 Cr $ 2,700,000 3,600,000 17,500 28,000 300,000 210,000 6,200 16,300 350,000
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We need to calculate the net sales and the cost of goods sold based on the trial balance a... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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