Required:Prepare a profit or loss statement for the year ending 31 December 20X0, taking into account the following:(a) Provision is to be made for depreciation of motor vehicles for the year at the rate of 20 per cent per annum on the cost of the vehicles.(b) The doubtful debts provision is to be adjusted to an amount equal to 5 per cent of the outstanding debtors.(c) The rates are £4,000 per annum and have been paid to 31 March 20X1 The following trial balance was drawn up from the books of A Merchant at 31 December 20X0££Capital account: A MerchantCapital account at 1 January 20X0:Introduced by A Merchant during the yearDrawings during the yearGross profit for the yearStock, 31 December 20X0Selling and distribution expensesMotor vehicles at costFreehold premises at costProvision for depreciation of motor900001,5008,00027.000123,6004,50020.00030,000vehicles at 1 January 20X0Debtors and creditorsBank balanceRates and insurancesOffice salariesOffice expensesDoubtful debts provisionBad debts written offDiscounts4,00031,10052,0008,7506,0003,0001,2502,5005001,5003,900159,110159,100

Profit & Loss statement of the business shows all income and expenses of the business and at the…

Required: Prepare a profit or loss statement for the year ending 31 December 20X0, taking into account the following: (a) Provision is to be made for depreciation of motor vehicles for the year at the rate of 20 per cent per annum on the cost of the vehicles. (b) The doubtful debts provision is to be adjusted to an amount equal to 5 per cent of the outstanding debtors. (c) The rates are £4,000 per annum and have been paid to 31 March 20X1

Required: Prepare a profit or loss statement for the year ending 31 December 20X0, taking into account the following: (a) Provision is to be made for depreciation of motor vehicles for the year at the rate of 20 per cent per annum on the cost of the vehicles. (b) The doubtful debts provision is to be adjusted to an amount equal to 5 per cent of the outstanding debtors. (c) The rates are £4,000 per annum and have been paid to 31 March 20X1

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EB: Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On...

See similar textbooks

Similar questions

Purchase-related transactionsJournalize entries for the following related transactions of Lilly Heating& Air Company: A. Purchased $36,000 of merchandise from Schell Co. on account,terms 1/10, n/30.B. Paid the amount owed on the invoice within the discount period.C. Discovered that merchandise with an invoice amount of $9,000purchased in (a) was defective and returned items, receiving credit.D. Purchased $5,000 of merchandise from Schell Co. on account,terms n/30.E. Received a refund from Schell Co. for return in (C) less thepurchase in (D).
Purchase-related transactionsJournalize entries for the following related transactions of ManvilleHeating & Air Company: a. Purchased $90,000 of merchandise from Wright Co. on account,terms 2/10, n/30.b. b .Paid the amount owed on the invoice within the discountperiodc. Discovered that $ 18,000 of the merchandise purchased in (a) was defective and returned items, receiving credit for $17,640 ($18,000-($18,000 x 2%)|.d. Purchased $10,000 of merchandise from Wright Co. on account,terms n/30.e. Received a refund from Wright Co. for return in (c) less thepurchase in (d).
Indicate the transaction price for this situation and when revenue will be recognized Groupo sells goods on account to Grifols for $800,000 payment due in 30 days O $1,000,000 recognized upon delivery of goods O s800,000 recoginzed upon delivery of goods O $800.000 recognized in O $800.000 recognized at Point of Sale days
Journalize the entores for the following related transactions of Manville Heating & Air company: A. purchased $31,000 of merchandise from Wright Co. On account,terms 1/10 ,n/30. ______ ______ B. Paid the amount owed on the invoice within the discount period. _____ _____ C. Discovered that $6,200 of the merchandise purchased in (a) was defective and returned items, receiving credit. _____ _____ D. Purchased $4,700 of merchandise from Wright company on account terms n/30. _____ _____ E. Received a refund from Wright company for return in (c) less the purchase in (d). _____ _____
A credit sale of $1,400 is made on July 15, terms 2/10, n/30, on which a return of $100 is granted on July 18. What amount is received as payment in full on July 24? $1,400 16. $1,274 c. $1,350 d. $1,372 Assume that you are the seller. Prepare the journal entry for the July 24th payment received.
Trading company Andin in September 2020, recorded the following transactions: Date Information September 2 Purchased merchandse from PT. Agung ata price of IDR 750,000, - terms payment of 2/10, n/30 Sold to a Sumba shop for merchandise at a price of September Sth Rp.650,000, - terms payment 2/10, n/ 30 No. Invoice 021. Sold in cash to a Toba shop for merchandise ata price of Rp.475,000 Invoice No. 013 was sent to the Melati shop on the sale of goods at IDR B00,000, - payment terms 1/10, n/ 60. - Received from Mawar shop in the amount of IDR September 6 September 8 350,000 Purchased on credit from a Merapi shop, shop equipment for Rp. 125,000. Purchased from PD. Rinjani merchandise worth IDR 1,500,000, - terms of payment 2/10, n/ 60. Received from Sumba shop for invoice settiement on September 5, amounting to IDR 625,000 with 2% cash discount Purchased merchandise from Muria shop with 9 September 12 September September 14 15th of September payment terms 1/10, n/3o for IDR 900,000…
How would you record this transaction in a journal entry? Accepted a sales return from Eastern for an item having an original gross sales price of $6000. The original sale to eastern occurred in November with terms 2/15, n/30.
Question 1. Trial balanceLand and premises 2000000Furniture 120000Inventory (01/04/19) 80000Import on duty 4000Wages of contract workers 46000Salaries 64000Carriage for goods purchased 5200Carriage for goods sold 12400Discounts 24900 25080Purchases and sales 705200 237252200 Rent 11200 13000Commission 15600 17400Bills receivable 1080012% investment (1/10/19) 136000Donation to national fund 1260010% bank loan 112000Factory rent 64000Receivables and payables 920000 240000eBank 728000Bad debts 66000 Provision for doubtful debts 20000Rates and taxes 31200BrokerageCapitalQueen corona 500000Queen covid 500000Current accountQueen corona 20000Queen covid 128000 Additional informationDue to the economic recession at the moment, the partners estimated that more of their receivables may not be able to settle their debts, hence, they wrote off additional debts of GHc 15000 and agreed to maintain provisions for doubtful debts at 5%.They agreed to provide for discount on receivables at 5%.All…
Sales-related transactionsAfter the amount due on a sale of $28,000, terms 2/10, n/eom, is receivedfrom a customer within the discount period, the seller consents to thereturn of the entire shipment for a cash refund. The cost of themerchandise returned is $16,800. (A) What is the amount of the refundowed to the customer? (B) Journalize the entries made by the seller torecord the return and the refund.
journalize entries for the following related transactions of greenville heating & air company: a. purchased $33,000 of merchandise from foster co., on account terms 2/10, n 30 b. paid the amount owed on the invoice within the discount period. c. Discovered that $6,600 of the purchased in (a) was defective and returned items, receiving credit for $6,468 ($6,600-($6,600 x2%) ).d. purchased $5,400 of merchandise from foster co., on account, terms n/30. e. received a refund from foster co., in (c) less the purchase in d.
Journalize entries for the following related transactions of Manville Heating & Air Company:a. Purchased $90,000 of merchandise from Wright Co. on account, terms 2/10, n/30.b. Paid the amount owed on the invoice within the discount period.c. Discovered that $18,000 of the merchandise purchased in (a) was defective and returned items, receiving credit for $17,640 [$18,000 − ($18,000 × 2%)].d. Purchased $10,000 of merchandise from Wright Co. on account, terms n/30.e. Received a refund from Wright Co. for return in (c) less the purchase in (d).
Bloom Company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, the entity recognizes the unearned revenue as realized. Information for the current year:Unearned gift certificates revenue, January 1 ₱ 250,000Gift certificates sold 1,745,000Gift certificates redeemed 1,483,250Gift certificates which expired 80,000Gross profit rate based on cost 25% Requirements: What amount should be reported for the year ended December 31 as Gross Profit? Unearned gift certificates revenue?