Question

The following selected information for sana co . for year ended 31/12/2018 in euro

Sales	520000
Beginning inventory	100000
Purchases	350000
Fright on Purchases	16000
Purchases return	35000
Salaries	44000	50% selling
Fright out	3000
Sales discount	2000
Advertising expenses	2200	50% selling
Traveling expenses	8000	50% selling
Tele	600
Rent expenses	4300	1300$ selling
Retained earning	255000
Supplies expenses	5300	Selling
Dividend	25000
Bonds	1200000
Interest expenses	1700
Depreciation expenses	6700	50% selling
Bad debit expenses	1000
Insurance expenses	360
Interest receivables	800
Interest revenues	800
Prepaid rant	500
Selling commissions	6000
Salaries payable	(5000)

Required : prepare the closing entries of the year if the tax rate 20%

Answer 1

Bayton Limited
Income Statement
For the year ended December 31, 2021
Particulars	Amount	Amount
Sales		520,000
Less: Sales discounts		2,000
Net Sales		518,000
Less: Cost of goods sold
Beginning inventory	100,000
Purchases less return	315,000
Freight on Purchases	16,000
	431,000
Less: Ending Inventory	-
		431,000
Gross Profit		87,000
Operating expenses:
Administrative expenses
Salaries (44,000 + 5,000)/2	24,500
Telephone expenses	600
Advertising expenses	1,100
Travelling expenses	4,000
Rent expenses	3,000
Depreciation	3,350
Insurance expenses	360
	36,910
Selling expenses
Salaries (44,000 + 5,000)/2	24,500
Freight outstanding	3,000
Advertising expenses	1,100
Travelling expenses	4,000
Rent expenses	1,300
Supplies expenses	5,300
Depreciation	3,350
Selling commissions	6,000
Bad-debt expenses	1,000
Total operating expenses		86,460
Income from operations		540
Non-operating income and expenses
Interest revenues	800
Interest receivables	800
Less: Interest expenses	1,700
		(100)
Income before taxes		440
Less: Income tax @ 20%		88
Net Income		352

The closing entries are:-
Bayton Limited
Journal
Date	Particulars	Debit	Credit
Dec-31	Sales		Dr	520,000
	Interest revenues	Dr	800
	Interest receivables		Dr	800
	To	Income Summary			521,600
	(Being revenue accounts adjusted to income summary)
Dec-31	Income Summary		Dr	521,248
	To	Sales Discounts			2,000
	To	Cost of goods sold			431,000
	To	Salaries			49,000
	To	Telephone expenses			600
	To	Advertising expenses			2,200
	To	Travelling expenses			8,000
	To	Rent expenses			4,300
	To	Depreciation			6,700
	To	Insurance expenses			360
	To	Freight outstanding			3,000
	To	Supplies expenses			5,300
	To	Selling commissions			6,000
	To	Bad-debt expenses			1,000
	To	Interest expenses			1,700
	To	Income Taxes			88
	(Being expenses accounts adjusted to income summary)
Dec-31	Income Summary			352
	To	Retained Earnings			352
	(Being the balance in income statement transferred)
Dec-31	Retained Earnings		25,000
	To	Dividends			25,000
	(Being dividends paid out of retained earnings)
					ekkarill92 Next > < Previous Related Solutions The following information for sana co . for year ended 31/12/2017 in euro Sales 405000 Beginning... The following information for sana co . for year ended 31/12/2017 in euro Sales 405000 Beginning inventory 100000 Purchases 350000 Fright on Purchases 16000 Purchases return 35000 Salaries 44000 50% selling Fright out 3000 Sales discount 2000 Advertising expenses 2200 50% selling Traveling expenses 8000 50% selling Tele 600 Rent expenses 4300 1300$ selling Supplies expenses 5300 Selling Interest expenses 1700 Depreciation expenses 6700 Bad debit expenses 1000 Insurance expenses 360 Interest receivables 800 Interest revenues 800 Prepaid rant 500... The following information relates to Husk Corn Co. for the year ended December 31, 2018: The... The following information relates to Husk Corn Co. for the year ended December 31, 2018: The company tells you that Income from Continuing Operations PRE Taxes is $ 300,000. However, this amount was computed before the company considered these items: (i.e. none of the items listed below are factored into the $300,000) Restructuring Costs incurred in 2018 were $25,000 When recording depreciation expense for the previous year (2017), they mistakenly recorded depreciation twice for the same asset. The amount of... The following information relates to Husk Corn Co. for the year ended December 31, 2018: The... The following information relates to Husk Corn Co. for the year ended December 31, 2018: The company tells you that Income from Continuing Operations PRE Taxes is $ 300,000. However, this amount was computed before the company considered these items: (i.e. none of the items listed below are factored into the $300,000) Restructuring Costs incurred in 2018 were $25,000 When recording depreciation expense for the previous year (2017), they mistakenly recorded depreciation twice for the same asset. The amount of... The following selected information is available for Jones & Co. Ltd., for the year ended 31 December 20X8: The following selected information is available for Jones & Co. Ltd., for the year ended 31 December 20X8: Other Information:1. Equipment with an original cost of $100,000 was sold for cash.2. Other equipment was bought for cash.3. There is no income tax expense.4. Cash dividends were paid during the year as well as a $50,000 stock dividend that reduced retained earnings and increased common shares. Required:Present, in good form, the operating, investing, and financing section of the SCF for the... Following is selected financial information from JM Smucker Co. for the year ended April 30, 2018... Following is selected financial information from JM Smucker Co. for the year ended April 30, 2018 ($ millions). Current assets, end of year $1,710.5 Long-term liabilities, end of year $7,013.9 Cash, end of year 211.9 Stockholders' equity, end of year 8,680.2 Cash from investing activities (305.4) Cash from operating activities 1,339.8 Cost of products sold 4,973.1 Total assets, beginning of year 17,203.7 Total liabilities, end of year 8,151.1 Revenue 8,092.8 Cash from financing activities* (1,006.1) Total expenses, other than cost... The following selected information is for Oriole Company for the year ended January 31, 2021: prepare... The following selected information is for Oriole Company for the year ended January 31, 2021: prepare closing entries Freight in $6,500 Purchase discounts $12,000 Freight out 7,100 Purchase returns and allowances 16,300 Insurance expense 12,000 Rent expense 20,500 Interest expense 6,000 Salaries expense 60,800 Merchandise inventory, beginning 61,300 Salaries payable 2,500 Merchandise inventory, ending 42,000 Sales 322,000 O. G. Pogo, capital 105,000 Sales discounts 14,000 O. G. Pogo, drawings 42,400 Sales returns and allowances 20,400 Purchases 213,000 Unearned sales revenue... Income Statement For the Year Ended December 31, 2018 Sales                                &nb Income Statement For the Year Ended December 31, 2018 Sales                                                               $8,500,000 Manufacturing Expenses Variable                                $3,250,000 Fixed overhead                       640,000       3,890,000 Gross Margin                                                  $4,610,000 Selling and administrative expenses Commissions                           $580,000 Fixed marketing expenses       300,000 Fixed admin expenses               450,000      1,330,000 Net Operating Income                                     $3,280,000 Fixed Interest expenses                                       230,000     Income before Taxes                                      $3,050,000      Income Taxes (21%)                                            640,500 Net Income                                                     $2,409,500 Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales.... Income Statement For the Year Ended December 31, 2018 Sales                                &nb Income Statement For the Year Ended December 31, 2018 Sales                                                               $8,500,000 Manufacturing Expenses Variable                                $3,250,000 Fixed overhead                       640,000       3,890,000 Gross Margin                                                  $4,610,000 Selling and administrative expenses Commissions                           $580,000 Fixed marketing expenses       300,000 Fixed admin expenses               450,000      1,330,000 Net Operating Income                                     $3,280,000 Fixed Interest expenses                                       230,000     Income before Taxes                                      $3,050,000      Income Taxes (21%)                                            640,500 Net Income                                                     $2,409,500 Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales.... Go-Go & Co. is preparing its financial statements for the year ended 12/31/2015. As of 12/31,... Go-Go & Co. is preparing its financial statements for the year ended 12/31/2015. As of 12/31, the company’s current assets are less than its current liabilities. The company is evaluating whether it must comply with the Codification’s going concern disclosure requirements, established in ASU 2014-15. Locate the Codification topic that addresses this issue. Explain whether disclosure of going concern issues is currently required for Go-Go & Co, considering the transition guidance provided for this topic. Next, explain whether such disclosure... The Bennett Corporation provides you with the following information for the year ended 12/31/20:          ... The Bennett Corporation provides you with the following information for the year ended 12/31/20:                                                                                 Sales revenue               450,000                       Cost of goods sold               120,000                       Gross margin               330,000                       Depreciation expense           72,750           ... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions A labor market has 50,000 people in the labor force. Each month, a fraction p of... A road with a radius of 72 m is banked so that a car can navigate... 1) If you had not dried the solid, would the calculated percent yield have been higher,... Two structures of alanine can be drawn that have a net charge of zero, but the... Co(II) was used as an internal standard to analyze a sample of Ti(IV) with atomic absorption... Matlab Programming Write an M-file to read a real-valued vector of any length from the keyboard... TASK back to top In the contemporary management environment, mergers and acquisitions are hot topics; particularly... ADVERTISEMENT About @ 2020 WizEdu