Question
In: Accounting
Mr Smith is the owner of a wholesale store (“Conquer Wholesalers”) that sells merchandise to other...
Mr Smith is the owner of a wholesale store (“Conquer
Wholesalers”) that sells merchandise to other
business. At the end of November 2019 you were presented with the
following balances from the general
ledger:
Dr Cr
Vehicles 150 000 DR
Accumulated depreciation on vehicles 50 000 CR
Inventory 100 000 DR
Trade receivables 50 000 DR
Bank 75 000 DR
Capital 300 000 CR
Trade payables 25 000 CR
The following transactions were recorded during December
2019:
1 Inventory with a cost price of R50 000 were sold for R75 000 to
ABC stores on credit.
5 Mr Smith withdraws R25 000 from the business account for personal
use.
10 Stationary worth R2 000 is bought on credit from ZYX
suppliers.
14 Water and electricity is paid R2 500 cash.
18 Inventory worth R50 000 is sold for R90 000 cash to various
customers.
Required:
1) Prepare a post-adjustment trial balance on 31 December 2019
(show all adjustments in
brackets).
2) Prepare the statement of comprehensive income for the month
ended December 2019. Ignore
depreciation.
3) Prepare the statement of financial position for the month ended
December 2019
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Mr Smith is the owner of a wholesale store (“Conquer Wholesalers”) that sells merchandise to other...
Mr Smith is the owner of a wholesale store (“Conquer
Wholesalers”) that sells merchandise to other business. At the end
of November 2019 you were presented with the following balances
from the general ledger:
Dr Cr
Vehicles 150 000
Accumulated depreciation on vehicles 50 000
Inventory 100 000
Trade receivables 50 000
Bank 75 000
Capital 300 000
Trade payables 25 000
Total 375 000 375 000
The following transactions were recorded during December
2019:
1 Inventory with a cost...
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following transactions occurred during the month of February:
Feb. 2—Purchased $18,600 of merchandise from Caroline
Manufacturing; terms are 1/10, n/30.
Feb. 5—Paid $750 freight bill for the February 2
purchase.
Feb. 11—Paid Caroline for the February 2 purchase.
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Mr. Wharton, the owner of the store, is unhappy with the
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that it includes $40,000 variable costs, which vary with sales
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Revenues
$500,000
Cost of goods sold (all variable costs)
250,000
Gross margin
250,000
Operating costs:
Salaries fixed
$160,000
Sales commissions (11% of sales)
55,000
Depreciation on equipment and fixtures
20,000
Store rent ($5,000 per month)
60,000
Other operating costs
55,000
350,000
Operating income (loss)
$(100,000)...
Mr. Wharton, the owner of the store, is unhappy with the operating results. an analysis of...
Mr. Wharton, the owner of the store, is unhappy with the
operating results. an analysis of other operating costs reveals
that it includes $45,000 variable costs, which vary with sales
volume, and $20,000 (fixed) costs.
Revenues
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Cost of goods sold (all variable costs)
202,500
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delivered in one month. After finishing the phone conversation,
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Mr Novak Murray is the sole owner of Roger & Rafa, a store
that offers tennis racquet stringing service (that involves the use
of strings and labour). The unadjusted trial balance of Roger &
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for the business ends 30 June.
Roger & Rafa Unadjusted Trial Balance as at 30 June 2018
Account
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Credit
Cash at Bank
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Accounts Receivable
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String Supplies
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P6-6A. Goods in Transit The Yankee Wholesale Company sells merchandise to a variety of retailers. Yankee...
P6-6A. Goods in Transit The
Yankee Wholesale Company sells merchandise to a variety of
retailers. Yankee uses different freight terms with its various
customers and suppliers. All sales are made on account.
Required
For each of the
following transactions, indicate which company has ownership of the
goods in transit:
a. Yankee sold
merchandise to X-Mart stores, with shipping terms of F.O.B shipping
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Superior Appliances is a retail store that sells household
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the general ledger accounts used to record these sales. The balance
shown for Accounts Receivable is for the beginning of the month.
DATE TRANSACTIONS July 1 Sold a dishwasher to John Martinez; issued
Sales Slip 501 for $925 plus sales tax of $74. 6 Sold a washer to
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Question 1 Khalil is the owner and manager of a hardware store. He sells on average...
Question 1
Khalil is the owner and manager of a hardware store.
He sells on average 50 industrial hammers per month. He places an
order to buy 50 hammers from a wholesaler at a cost of 20 OMR per
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Question 1 Khalil is the owner and manager of a hardware store. He sells on average...
Question 1
Khalil is the owner and manager of a hardware store.
He sells on average 50 industrial hammers per month. He places an
order to buy 50 hammers from a wholesaler at a cost of 20 OMR per
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himself and finds that it takes a long time. He estimates that the
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