Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 1, Problem 3BP
To determine
Prepare the 2019 year-end income statement for Company A.
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1. The financial year of Shah Enterprise ended on 31 December 2019. Show the ledger account for the following items including the balance transferred to the necessary part of the financial statements.a) Rent expenses: Paid RM700 in 2019; owed RM30 as at 31 December 2019b) Insurance expenses: Paid RM500 in 2019; prepaid as at 31 December 2019 wasRM40c) Commission received: Received RM650 in 2019; amount accrued as 31 December2019 was RM100d) Rent received: Received RM400 in 2019; amount received in advance as at 31December 2019 was RM100
2. The following balances were extracted from the ledger of CTSha Trading as at 31 October 2019.
DEBIT (RM)
CREDIT (RM)
Insurance
12,000
Water and electricity
4,800
Wages and salaries
16,000
Rental income
9,900
Interest income
6,000
Prepaid insurance as at 1 Nov 2018
1,500
Accrued wages and salaries as at 1 Nov 2018
2,000
Accrued rental income as at 1 Nov 2018
1,800
The following adjustment were to be…
1. The financial year of Shah Enterprise ended on 31 December 2019. Show the ledger account for the following items including the balance transferred to the necessary part of the financial statements.a) Rent expenses: Paid RM700 in 2019; owed RM30 as at 31 December 2019 b) Insurance expenses: Paid RM500 in 2019; prepaid as at 31 December 2019 was RM40c) Commission received: Received RM650 in 2019; amount accrued as 31 December 2019 was RM100d) Rent received: Received RM400 in 2019; amount received in advance as at 31 December 2019 was RM100
Questions about the Income Statement.
a. List 2 expense accounts AND their amounts for 2020.
b. What was the net profit/(loss) for 2020? What about 2019?
c. Compared with 2019, has the net profit/(loss) increased or decreased?
Questions about the Statement of Financial Position.
a. How much was the Cash account balance at December 31, 2020? What about 2019?
b. Mention the biggest liability with its amount for the company at December 31, 2020.
c. What was the Total Equity for the company at December 31, 2020? What about December 31, 2019?
Chapter 1 Solutions
Principles of Financial Accounting.
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