Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 18E
Financial information related to Udder Products Company, a proprietorship, for the month ended April 30, 2019, is as follows:
- a. Prepare a statement of owner’s equity for the month ended April 30, 2019.
- b.
Why is the statement of owner’s equity prepared before the April 30, 2019, balance sheet?
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QUESTION 2
The following is the Trial Balances extracted from the books of Rosemary Garden Enterprise
as at 31 December 2021:
Debit (RM)
Credit (RM)
153,900
Capital
Drawings
3,500
Sales
400,000
Purchases
250,000
Return Inwards and outwards
4,150
450
Inventory as at 1 January 2021
Delivery van at cost
Office equipment at cost
Accumulated depreciation at 1 January 2021
Delivery van
Office equipment
65,000
20,000
36,000
4,500
10,800
Account Receivable
90,000
Account Payable
32,000
Insurance on machinery
750
Allowance for doubtful debts as at 1 January 2021
1550
Discount allowed and discount received
350
800
Stationery
General expenses
Rental expense
300
2,200
3,300
Interest on loan
5,600
Cash in hand
4,250
Cash at bank
Carriage inwards
Wages and salaries expenses
10% Long term investment
8% Loan from Tekun
9,000
1,500
16,100
162,000
70,000
674,000
TOTAL
674,000
Additional information:
a) The closing inventory as at 31 December 2021 is RM 30,000.
b) The amount of a debtor of RM750 is to be…
Chapter 1 Solutions
Financial Accounting
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