“In 2020 Saudi Arabia - the standard rate of VAT increased from 5% to 15%. Discuss the welfare effects of the VAT reform and its implications for business and taxpayers”.
In: Economics
In: Economics
The following list of accounts is taken from the December 31,
2020, unadjusted trial balance of Perdu Sales, a business that is
owned by Eldon Perdu.
| Debit | Credit | |||||
| Cash | $ | 8,000 | ||||
| Merchandise inventory | 9,800 | |||||
| Prepaid selling expense | 8,000 | |||||
| Store equipment | 40,000 | |||||
| Accumulated depreciation, store equipment | $ | 9,800 | ||||
| Accounts payable | 14,840 | |||||
| Salaries payable | 0 | |||||
| Eldon Perdu, capital | 25,360 | |||||
| Eldon Perdu, withdrawals | 3,600 | |||||
| Sales | 858,000 | |||||
| Sales returns and allowances | 33,000 | |||||
| Sales discounts | 8,000 | |||||
| Cost of goods sold | 431,000 | |||||
| Sales salaries expense | 94,000 | |||||
| Utilities expense, store | 12,600 | |||||
| Other selling expenses | 70,000 | |||||
| Other administrative expenses | 190,000 | |||||
Additional information:
Accrued sales salaries amount to $3,200. Prepaid selling expenses
of $5,200 have expired. Depreciation for the period is
$2,500.
Required:
Assuming a perpetual inventory system, complete the
following:
a. Journalize the adjusting journal entries.
b. Prepare a classified multiple-step income
statement for the year ended December 31, 2020.
Analysis Component:
Assume that for the year ended December 31, 2019, net sales were
$600,000; operating expenses were $344,000; and there was a loss of
$14,000. Calculate the company’s gross profit ratios for 2019 and
2020. (Do not round intermediate calculations. Round your
final answers to 2 decimal places.)
2019= gross profit %
2020= gross profit%
In: Accounting
“In 2020 Saudi Arabia - the standard rate of VAT increased from 5% to 15%. Discuss the welfare effects of the VAT reform and its implications for business and taxpayers”
In: Economics
The following trial balance was taken from the books of Venus Corporation at December 31, 2020:
Account Debit Credit
Cash........................................................................................................... $ 40,000
Accounts Receivable.................................................................................... 106,000
Prepaid Rent ............................................................................................... 12,800
Note Receivable................................................................................................ 8,000
Merchandise Inventory................................................................................... 54,000
Unexpired Insurance......................................................................................... 4,800
Furniture and Equipment.............................................................................. 138,000
Accumulated Depreciation........................................................................................ 15,000
Accounts Payable....................................................................................................... 12,600
Common Shares......................................................................................................... 44,000
Retained Earnings...................................................................................................... 65,000
Sales........................................................................................................................... 410,000
Cost of Goods Sold....................................................................................... 128,000
Salaries Expense............................................................................................. 53,000
Totals.................................................................................................. $ 546,600 $ 546,600
At year end, the following items have not yet been recorded.
1. Insurance expired during the year, $ 3,000.
2. Depreciation on furniture and equipment, 10% per year.
3. Interest at 9% is receivable on the note for one full year.
4. Prepaid rent used up during the year, $6,000.
5. Accrued salaries at December 31, $ 6,200.
Instructions
a) Prepare in good form the necessary adjusting entries, adding any new accounts which you may need. Narratives (explanations) are not required for journal entries.
b) Prepare the necessary closing entries.
In: Accounting
The following trial balance was taken from the books of Venus Corporation at December 31, 2020:
Account Debit Credit
Cash......................................................................................................... $ 40,000
Accounts Receivable............................................................................... 106,000
Prepaid Rent ........................................................................................... 12,800
Note Receivable...................................................................................... 8,000
Merchandise Inventory........................................................................... 54,000
Unexpired Insurance............................................................................... 4,800
Furniture and Equipment........................................................................ 138,000
Accumulated Depreciation...................................................................... 15,000
Accounts Payable.................................................................................... 12,600
Common Shares...................................................................................... 44,000
Retained Earnings................................................................................... 65,000
Sales........................................................................................................ 410,000
Cost of Goods Sold................................................................................ 128,000
Salaries Expense...................................................................................... 53,000
Totals................................................................................................ $ 546,600 $ 546,600
At year end, the following items have not yet been recorded.
1. Insurance expired during the year, $ 3,000.
2. Depreciation on furniture and equipment, 10% per year.
3. Interest at 9% is receivable on the note for one full year.
4. Prepaid rent used up during the year, $6,000.
5. Accrued salaries at December 31, $ 6,200.
Instructions
a) Prepare in good form the necessary adjusting entries, adding any new accounts which you may need. Narratives (explanations) are not required for journal entries.
b) Prepare the necessary closing entries.
In: Accounting
In 2020 Saudi Arabia - the standard rate of VAT increased from 5% to 15%. Discuss the welfare effects of the VAT reform and its implications for business and taxpayers
In: Economics
From the following account balances to 30 June 2020 prepare a statement of financial position in the narrative classified format.
Note: you will need to determine the balance of the retained earnings.
|
Type of Account |
$ |
|
Accounts Receivable |
46500 |
|
Provisions |
50000 |
|
Prepayments |
1200 |
|
Sales Revenue |
455000 |
|
Plant and Equipment |
220000 |
|
Other Current Assets |
11000 |
|
Borrowings |
120000 |
|
Interest on Borrowings E |
6000 |
|
Accumulated Depreciation |
48500 |
|
Accounts Payable |
26000 |
|
Share Capital |
450000 |
|
Land and Buildings |
339000 |
|
Inventory |
78000 |
|
Two Year Term Deposit |
98500 |
|
Cash at Bank |
32000 |
|
Retained Earnings |
? |
|
Salaries expense |
215000 |
|
Salaries Accrued |
12500 |
|
Insurance Expense |
9000 |
|
Annual Depreciation |
22000 |
|
Utilities Expense |
8500 |
|
Selling Expenses |
25000 |
In: Accounting
The following transactions are from Sharper Vision Corporation.
a. Prepare journal entries for the transactions 1
through 4, assuming that the company uses the perpetual inventory
system and the net method to record purchases. Include any
adjusting entry required on December 31, 2020.
Note: Round answers to the nearest dollar.
| Date | Account Name | Dr. | Cr. |
|---|---|---|---|
| Dec. 10, 2020 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
|
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A |
Answer | Answer | |
| Dec. 15, 2020 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
|
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A |
Answer | Answer | |
| Dec. 19, 2020 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
|
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A |
Answer | Answer | |
| Dec. 31. 2020 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
|
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A |
Answer | Answer | |
| To record adjusting entry for interest. | |||
| Jan. 5, 2021 | AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A | Answer | Answer |
|
AnswerCashAccounts ReceivableInventoryAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight-inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN/A |
Answer | Answer |
PreviousSave AnswersNext
Copyright 2020 Cambridge Business Publishers , All Rights Reserved | Terms of Use | Privacy Policy | Return Policy | User Guide | Browser Support
In: Accounting
what are the goals and objectives of Xiaomi Corporation from 2020 to 2025.
(Use your own words at least 500 words)
In: Operations Management