28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a sole tra Trial Balance as at 31 May 2012 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts Allowance for doubtful debts Accounts receivable Accounts payable Cash in hand Cash at bank Inventory as at 1 June 2011 Equipment at cost accumulated depreciation Capital The following additional information as at 31 May 2012 is available: (a) Rent is accrued by £210. (b) Rates have been prepaid by £880. Dr £ 82,350 5,144 7,800 6,622 3,001 1,330 26,420 877 12,120 177 1,002 11,927 58,000 216,770 (c) £2,211 of carriage represents carriage inwards on purchases. (d) Equipment is to be depreciated at 15% per annum using the straight line method. (e) The allowance for doubtful debts to be increased by £40. (f) Inventory at the close of business has been valued at £13,551. Cr £ 138,078 130 6,471 19,000 53,091 216,770 Required: Prepare an income statement for the year ending 31 May 2012 and a statement of financial posi- tion as at that date.

28.12A The following trial balance has been extracted from the ledger of Mr Yousef, a sole tra Trial Balance as at 31 May 2012 Sales Purchases Carriage Drawings Rent, rates and insurance Postage and stationery Advertising Salaries and wages Bad debts Allowance for doubtful debts Accounts receivable Accounts payable Cash in hand Cash at bank Inventory as at 1 June 2011 Equipment at cost accumulated depreciation Capital The following additional information as at 31 May 2012 is available: (a) Rent is accrued by £210. (b) Rates have been prepaid by £880. Dr £ 82,350 5,144 7,800 6,622 3,001 1,330 26,420 877 12,120 177 1,002 11,927 58,000 216,770 (c) £2,211 of carriage represents carriage inwards on purchases. (d) Equipment is to be depreciated at 15% per annum using the straight line method. (e) The allowance for doubtful debts to be increased by £40. (f) Inventory at the close of business has been valued at £13,551. Cr £ 138,078 130 6,471 19,000 53,091 216,770 Required: Prepare an income statement for the year ending 31 May 2012 and a statement of financial posi- tion as at that date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A. Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include the $6,000 note receivable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts. B. Accrue one month of interest on the note receivable from Myers Manufacturing. C. Prepare a partial balance sheet showing the net accounts receivable section.
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