Molly starts up in business as a florist on 1 April 2004. For the first six months, she has a draft profit of $12,355. On investigation you discover the following: Rent paid for the 12 months ending 31 March 2005 of $800 has not been recorded in the accounts. Closing inventory in the accounts at a cost of $1,000 has a net realisable value of $800. What is the adjusted profit for the period? A $11,355 B $11,755 C $12,155 D $12,555

Molly starts up in business as a florist on 1 April 2004. For the first six months, she has a draft profit of $12,355. On investigation you discover the following: Rent paid for the 12 months ending 31 March 2005 of $800 has not been recorded in the accounts. Closing inventory in the accounts at a cost of $1,000 has a net realisable value of $800. What is the adjusted profit for the period? A $11,355 B $11,755 C $12,155 D $12,555

Name: Molly starts up in business as a florist on 1 April 2004. For the firs
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Description: Molly starts up in business as a florist on 1 April 2004. For the first six months, she has a draft profit of $12,355.On investigation you discover the following:Rent paid for the 12 months ending 31 March 2005 of $800 has not been recorded in the ac

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter4: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 4A: Your client is preparing financial statements to show the bank. You know that he has incurred a...

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