Question

In: Accounting

B2 (a) The trial balance of bank Nizwa as on 31/12/18 showed the following balances Particulars...

B2
(a) The trial balance of bank Nizwa as on 31/12/18 showed the following balances
Particulars
OMR
Interest and discount,
4,540,600
Rebate on bills discounted (1/1/2018)
4,750
Bills discounted and purchased
337,400
Unexpired discount is OMR 1,500
Draft necessary adjusting entries, and ledger. Calculate the amount of interest and discount to be credited to profit and loss account and show how this item will appear in the balance sheet and in the final accounts of the bank.
(b) Oman United Insurance Corporation provides you with some of the data related to its life insurance policies:
Premium received during the year                 = OMR 49,000
Reinsurance premium paid                                = 15% of the total premium received this year
Bonus in reduction of premium                       = 1% of the total premium received this year
Outstanding premium at the start                  = OMR 8,750
Premium received in advance at the end     = OMR 1,895
Required: You have been asked to calculate the amount of premium to be credited to revenue account this year.
.( 3 marks)

Solutions

Expert Solution


Related Solutions

Friends, Inc. received its bank statement for the month ended 12/31/18. The bank statement showed a...
Friends, Inc. received its bank statement for the month ended 12/31/18. The bank statement showed a balance of $10,102.87. The company’s general ledger showed a balance of $8,656.11. The following items were discovered when comparing the bank statement to the books of the company: The bank charged check processing fees of $25.00. There was a $1,825.52 automatic withdrawal to pay the mortgage. Of the $1,825.52, $1,572.86 was for interest which had been accrued. The bank charged Friends, Inc. account $250.00...
The adjusted trial balance of Foster Products Company included the following balances for 12- 31-15, which...
The adjusted trial balance of Foster Products Company included the following balances for 12- 31-15, which was the first year of operations Accounts Payable $ 18000 -Credit Accumulated Depreciation 35000 -Credit Advertising Expense 17800 -Debit Cash 7400 -Debit Common Stock 3000 -Credit Cost of Goods Sold 75800 -debit Depreciation Expense 3000 -Debit Dividends 2000 _debit Equipment 81800 -Debit InsuranceExpense 2800 -Debit Interest Revenue 500 -Credit Inventory 24000-Debit Prepaid Insurance 3800 -Debit Rent Expense 26000 -Debit Retained Earnings 40000 -Credit Salaries...
The adjusted trial balance of Foster Products Company included the following balances for 12- 31-15, which...
The adjusted trial balance of Foster Products Company included the following balances for 12- 31-15, which was the first year of operations Accounts Payable $ 18000 Accumulated Depreciation 35000 Advertising Expense 17800 Cash 7400 Common Stock 3000 Cost of Goods Sold 75800 Depreciation Expense 3000 Dividends 2000 Equipment 81800 Insurance Expense 2800 Interest Revenue 500 Inventory 24000 Prepaid Insurance 3800 Rent Expense 26000 Retained Earnings 40000 Salaries Expense 63000 Sales 226600 Sales Discounts 1000 Sales Returns and Allowances 5000 Supplies...
Prepare a 12/31/18 balance sheet.
The following account balances were taken from the 2018 post-closing trial balance of the Bowler Corporation:cash, $5,000accounts receivable, $10,000inventory, $16,000equipment, $100,000accumulated depreciation—equipment, $40,000accounts payable, $20,000 salaries payable, $12,000retained earnings, $9,000 and common stock, $50,000.Prepare a 12/31/18 balance sheet
The following balances are taken from the Trial Balance of Alpha Corp as of December 31,...
The following balances are taken from the Trial Balance of Alpha Corp as of December 31, 2018: Cash               $19,000               Accounts Receivable   $ 8,000 Accounts Payable          5,500                   Equipment       25,000 Interest Income           500                   Prepaid Insurance   2,500 Accumulated Depreciation      10,000               Common Stock       20,000 Notes Payable (due in 2019)      7,000                   Salaries Expense   28,000 Retained Earnings...
The December 31, 2017, adjusted trial balance of Maritime Manufacturing showed the following information:   Machinery $...
The December 31, 2017, adjusted trial balance of Maritime Manufacturing showed the following information:   Machinery $ 400,000   Accumulated depreciation, machinery1 156,300   Office furniture 90,600   Accumulated depreciation, office furniture2 50,100 1Remaining useful life four years; estimated residual $40,000 2Remaining useful life five years; estimated residual $11,300 Early in 2018, the company made a decision to stop making the items produced by the machinery and buy the items instead. As a result, the remaining useful life was decreased to two years and...
The adjusted 12/31/22 Trial Balance for Sirius Corporation included these accounts and balances. All accounts have...
The adjusted 12/31/22 Trial Balance for Sirius Corporation included these accounts and balances. All accounts have a normal balance. No other accounts existed. Retained Earnings (1/1/22) $161 Salaries Expense $170 Accounts Payable $25 Common Stock $50 Cash $75 Accounts Receivable $28 Unearned Service Revenue $21 Salaries Payable $9 Dividends $25 Prepaid Rent $8 Depreciation Expense: Equip. $40 Cleaning Supplies $15 Service Revenue $350 Accumulated Depreciation: Equip. $120 Cleaning Supplies Expense $95 Equipment $280 Determine the total of the Adjusted Trial...
The adjusted 12/31/22 Trial Balance for Sirius Corporation included these accounts and balances. All accounts have...
The adjusted 12/31/22 Trial Balance for Sirius Corporation included these accounts and balances. All accounts have a normal balance. No other accounts existed. Retained Earnings (1/1/22) $161 Salaries Expense $170 Accounts Payable $25 Common Stock $50 Cash $75 Accounts Receivable $28 Unearned Service Revenue $21 Salaries Payable $9 Dividends $25 Prepaid Rent $8 Depreciation Expense: Equip. $40 Cleaning Supplies $15 Service Revenue $350 Accumulated Depreciation: Equip. $120 Cleaning Supplies Expense $95 Equipment $280 Determine the total of the Adjusted Trial...
The adjusted 12/31/22 Trial Balance for Sirius Corporation included these accounts and balances. All accounts have...
The adjusted 12/31/22 Trial Balance for Sirius Corporation included these accounts and balances. All accounts have a normal balance. No other accounts existed. Retained Earnings (1/1/22) $161 Salaries Expense $170 Accounts Payable $25 Common Stock $50 Cash $75 Accounts Receivable $28 Unearned Service Revenue $21 Salaries Payable $9 Dividends $25 Prepaid Rent $8 Depreciation Expense: Equip. $40 Cleaning Supplies $15 Service Revenue $350 Accumulated Depreciation: Equip. $120 Cleaning Supplies Expense $95 Equipment $280 Determine the total of the Adjusted Trial...
Delta Automotive Corporation has the following assets listed in its 12/31/2021 trial balance: Cash in bank—checking...
Delta Automotive Corporation has the following assets listed in its 12/31/2021 trial balance: Cash in bank—checking account $ 38,500 U.S. Treasury bills (mature in 60 days)* 6,000 Cash on hand (currency and coins) 2,950 U.S. Treasury bills (mature in six months)* 26,000 Undeposited customer checks 3,440 *Purchased on 11/30/21 Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2021 balance sheet. 2. Tracy Company, a manufacturer of air...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT