In: Accounting
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%
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) | |||||
Related SolutionsThe 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
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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
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Purchase discounts
$12,000
Freight out
7,100
Purchase returns and allowances
16,300
Insurance expense
12,000
Rent expense
20,500
Interest expense
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Salaries expense
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Salaries payable
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Merchandise inventory, ending
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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
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Fixed marketing expenses
300,000
Fixed admin expenses
450,000
1,330,000
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230,000
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Net
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Your company is considering out-sourcing the sales and marketing
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Income Statement For the Year Ended December 31, 2018 Sales &nbIncome 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
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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
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Income Taxes
(21%)
640,500
Net
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