Description Motor vehicles 50 000 Dt Accumulated depreciation on motor vehicles 5 000 Cr Debtors control 45 000 Dt Bank: one 7 550 Dt Bank two: 650 Cr Equipment 25 000 Dt Accumulated depreciation on equipment 2 100 Cr Creditors control 15 600 Cr Share capital 3 000 Cr Retained earnings 31 800 Cr Rental income 13 000 Cr Inventory: Finished products 8 500 Dt Sale of goods 135 000 Cr Water and electricity 8 800 Dt Salaries and wages 55 000 Cr Printing and stationery 6 300 Cr 206 150 (206 150) Adjustments: 1. Rental income earned monthly amounts to R1 000. 2. Printing and stationery on hand as at 31 December 2021 amounted to R800. 3. Cleaning expenses of R250 was incorrectly posted to the salaries and wages account. 4. Discount of R150 was given to a debtor who settled her account before due date. 5. The municipal account for December 2021 was not yet received. The monthly dues amount to R800. 6. Defective inventory of R600 was returned by a customer. 7. Mr Ralley’s business was placed under curatorship. His lawyers indicated that he can only settle 20c in the rand on this account. His account balance at 31 December 2021 amounted to R4 000. 8. Fling Incorporated adopted a policy to provide for 10% credit losses on the debtors accounts. How to do the Statement of Comprehensive Income of Fling Incorporated for the financial year ended 31 December 2021
Description
Motor vehicles
50 000 Dt
5 000 Cr
Debtors control
45 000 Dt
Bank: one
7 550 Dt
Bank two:
650 Cr
Equipment
25 000 Dt
Accumulated depreciation on equipment
2 100 Cr
Creditors control
15 600 Cr
Share capital
3 000 Cr
31 800 Cr
Rental income
13 000 Cr
Inventory: Finished products
8 500 Dt
Sale of goods
135 000 Cr
Water and electricity
8 800 Dt
Salaries and wages
55 000 Cr
Printing and stationery
6 300 Cr
206 150
(206 150) Adjustments:
1. Rental income earned monthly amounts to R1 000.
2. Printing and stationery on hand as at 31 December 2021 amounted to R800.
3. Cleaning expenses of R250 was incorrectly posted to the salaries and wages account.
4. Discount of R150 was given to a debtor who settled her account before due date.
5. The municipal account for December 2021 was not yet received. The monthly dues amount to R800.
6. Defective inventory of R600 was returned by a customer.
7. Mr Ralley’s business was placed under curatorship. His lawyers indicated that he can only settle 20c in the rand on this account. His account balance at 31 December 2021 amounted to R4 000.
8. Fling Incorporated adopted a policy to provide for 10% credit losses on the debtors accounts.
How to do the Statement of Comprehensive Income of Fling Incorporated for the financial year ended 31 December 2021
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