Prepare a Statement of Changes in Owner's Equity
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The following balances were retrieved from the records of Carlo's Janitorial Services for the year ended December 31, 2016:
•Capital, January 1, 2016 P 500,000
•Withdrawals P 100,000
•Additional Investments P 50,000
•Net Loss P 45,000
Prepare a Statement of Changes in Owner's Equity
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- Shane Sunland began a business, Sunland Company, on January 1, 2021, with an investment of $105,000. The company had the following assets and liabilities on the dates indicated: December 31 Total Assets Total Liabilities 2021 $355,000 $200,000 2022 440,000 285,000 2023 535,000 310,000 Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for: a) 2021, assuming Shane Sunland's drawings were $50,000 for the year. b) 2022, assuming Shane Sunland's made an additional investment of $51,000 and had no drawings in 2022. c) 2023, assuming Shane Sunland's made an additional investment of $10,000 and his drawings were $40,000 for the year. Please explain for all questions, thank you.Displayed here are the draft financial statements which have been prepared for Valerie’s business for the year ended 30 April 2021. Draft Statement of Financial Position as at 30 April 2021 Assets Non-current assets see point a. below Cost 90,000 Provision for depreciation 30,600 Net Book Value 59,400 Current assets Inventory To be advised Trade receivables 43,200 Cash 4,680 47,880 Total assets 107,280 Liabilities Current liabilities Trade payables 17,280 Non-current liabilities Bank loan 16,000 Total liabilities 33,280 Net assets 74,000 Owner’s interest Capital invested 24,000 Profit and Loss Reserve: Opening balance 34,720 Draft profit for the year…Prepare journal entries to record the following transactions. You are required to show all calculations: 3.1 The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000. 3.2 The allowance for credit losses account has an opening balance of R4 500. The policy requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial manager instructed the write off on the balance.
- A company provides the following information for the year 2018: Description Description Mortgage payable (due 2021) $32,510 |Unearned revenue Amount Amount Cash $9,950| $17,500 Accounts payable $950 Temporary investments Inventory $16,750 |(to be sold within 3 $6,150 months) Accumulated depreciation Equipment Common shares Prepaid rent $97,500 $15,940 $9,500 $217,500 $50,000 Retained earnings $1,350 Salaries payable $23,750| |Long-term notes payable Accounts receivables $47,500 Compute the current liabilities for the company. a. $58,900 b. $42,960 c. $57,000 d. $57,950The following information have been taken from income statement and balance sheet of Kamal Inc. Income statement • Net income: $192,500 • Depreciation expense: $62,500 • Amortization of intangible assets: $20,000 • Gain on sale of equipment: $45,000 • Loss on sale of investments: $17,500 Balance sheet: • Accounts receivable on January 1, 2017: $190,000 • Accounts receivable on December 31, 2017: $167,500 • Inventory on January 1, 2017: $287,500 • Inventory on December 31, 2017: $251,500 • Prepaid expenses on January 1, 2017: $5,000 • Prepaid expenses on December 31, 2017: $11,000 Accounts Payable on January 1, 2017: $205,000 • Accounts payable on December 31, 2017: $189,500 • Accrued expenses payable on January 1, 2017: $77,500 • Accrued expenses payable on December 31, 2017: $90,000 Accounts payable given above relate to suppliers of merchandise. Required: Using above information, compute net cash flows from operating activities.On August 1, 2020, the business accounts of Peter and Senen appear below:Assets Peter SenenCash P11,000 P22,354Accounts receivable 84,536 217,890Inventories 100,035 240,102Land 603,000 428,267Buildings 200,345 384,789Other Assets 22,000 23,600Total P1,020,916 P1,317,002Liabilities and CapitalAccounts payable P178,940 P243,650Notes payable 200,000 345,000Peter, Capital 641,976Senen, Capital 728,352Total P1,020,916 P1,317,002Peter and Senen agreed to form a partnership contributing their respective assets and liabilitiessubject to the following adjustments:Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respectivebooks.Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective booksOther Assets of P2,200 and P3,600 in Peter and Senen’s books are written off.After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interestin the firm. They also agreed to divide profits and losses in the ratio of 4:4:2…
- A selection of account balance from blue corp. are listed below. All balances are as of December 31,2017, except where noted:Accounts payable $7500Accounts receivable, 1/1/17 $5,250Accumulated depreciation $21500 building 65000Cash 12200Common stock 50000Delivery truck 9500Depreciation expenses 10750Dividends 3650Marketable equity securities 2400Account receivable 12/31/17 7125Inventory, 1/1/17 3050Supplies 5200Salaris 10400Salaris expenses 10400Net sales 61365Rent expenses 7850Retained earnings 1/1/17 25010Equipment 15700Prepaid expenses 2000Cost of goods sold 16350Notes payable (due 2019) 4400Inventory 12/31/17 4750 1) Determine the gross profit ratio?2) Determine the account receivable turnover?3) Determine the inventory turnover?4)Determine the debt to equity ratio as of December 31,2017?Huron has provided the following year-end balances:· Cash, $25,000· Long-term Investments, $7,900· Accounts receivable, $9,300· Property, plant, and equipment, $98,700· Prepaid insurance, $3,600· Accumulated depreciation, $10,000· Inventory, $37,000· Retained earnings, $12,600How much are Huron's current assets? Group of answer choices a)$74,900. B)$163,600. c)$87,500.D)$95,400the records of abc trading for the current year show the following: december 31, 2020 january 1, 2020 500,000 assets 300,000 liabilities 150,000 50,000 during the year, the sole proprietor made a total withdrawal from the business amounting to 240,000. using the information above, how much is the net taxable income using the net asset approach?
- The following were taken from the books of Amihan Company December 31, 2017: Long-term payable Notes Payable Property, Plant and Equipment Accounts Receivable Accounts Payable Accumulated Depreciation Cash Owner's Capital Unearned Income Notes Receivable Prepaid Expense Inventory Intangible Assets 500,000.00 120,000.00 750,000.00 56,000.00 65,000.00 100,000.00 77,000.00 ? 15,000.00 245,000.00 59,000.00 158,000.00 125,000.00 A. Based on the data given above, identify, classify and compute the following: Current Assets Non Current Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities Equity B. Prepare Statement of Financial Position of Amihan Company during year-end.Use the current asset section of the balance sheets of the Waverley Company as of June 30, 2017 and 2016 presented below to answer the questions that follow. 2017 2016Cash and cash equivalents R 75,000 R 58,800Trade accounts receivable, net 157,500 193,200Inventory 208,200 253,400Other current assets 18,400 15,500Total current assets R 459,100 R 520,900Total assets R2,650,000 R3,430,000Required:Complete a horizontal analysis of the current asset section of Waverley Company’s balance sheet for 2017. Your answers for “% Change” should be rounded to one decimal place, e.g.,…he following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $75,000 to an employee of the company and received back a one-year, 8 percent note. b. Dec. 31 Accrued interest on the note. 2018 c. July 1 Received interest on the note. (No interest has been recorded since December 31.) d. July 1 Received principal on the note. Required: Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
