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
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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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Cost of goods sold (all variable costs)
250,000
Gross margin
250,000
Operating costs:
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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)
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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
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that it includes $45,000 variable costs, which vary with sales
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202,500
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Mr Novak Murray is the sole owner of Roger & Rafa, a store
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for the business ends 30 June.
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P6-6A. Goods in Transit The Yankee Wholesale Company sells merchandise to a variety of retailers. Yankee...
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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
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a. Yankee sold
merchandise to X-Mart stores, with shipping terms of F.O.B shipping
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Question 1 Khalil is the owner and manager of a hardware store. He sells on average...
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Khalil is the owner and manager of a hardware store.
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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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