The following is an incomplete balance sheet for the manufacturing company Roaring King A / S as
Question:
The following is an incomplete balance sheet for the manufacturing company Roaring King A / S as of 31 December 2020. The accounts are listed in random order. All postings and postings have been completed; the only exception is “Transferred Profit” (see “Additional Information” below). All accounts have positive / normal balances. Ie. assets have a debit balance, etc.
further info:
- Bank debt: one third of the amount is due on 1 March 2021, the rest is due on 22 December 2022.
- Transferred profit: The opening balance on 1 January 2020 was 500,000. The ultimo balance sheet on “Transferred profit” is missing, which is why you are asked to calculate it (ie you are asked to calculate the correct balance at the end of the balance sheet).
Note:
• You can use accounts in addition to those that already exist.
• Do not aggregate too much.
• Include an appropriate heading for each item in the accounts.
• Comparative figures from previous years do not exist, as can be seen
Question 1.1
Prepare the balance sheet for Roaring King A / S as of 31 December 2020. The financial year ended 31 December 2020.
Question 1.2
Prepare the income statement for Roaring King A / S regarding the financial year 2020.
Question 1.3
Show how you found the final balance for "Transferred Profit".
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak