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Khalid recently invested $80,000 of your savings in a security issued by a large company. The security agreement pays you 12% per year and has a maturity 3years from the day you purchased it. What is the total cash flow Khalid expect to receive from this investment after 3 years?
Record the transactions in General Journal.
“ 21 Paid its liabilities for the purchase of equipment
“ 24 Recorded sales on account Birr 2,080
“ 26 Received an invoice for truck expense Birr 115
“ 27 Paid utilities expense Birr 205.
“ 27 Paid miscellaneous expenses Birr 73.
“ 28 Received cash from customers on account birr 1,420
“ 30 Paid salaries to employees Birr 950
“ 30. The owner withdrew Birr 1, 750 for personal use.
Legal Services Company Ltd. was formed on July 1, 2017. During the first month of
operations, the following transactions occurred.
1. Shareholders invested $10,000,000 in cash in exchange for ordinary shares of
Legal Services Company Ltd.
2. Paid $800,000 for July rent on office space.
3. Purchased office equipment on account $3,000,000.
4. Performed legal services for clients for cash $1,500,000.
5. Borrowed $700,000 cash from a bank on a note payable.
6. Performed legal services for client on account $2,000,000.
7. Paid monthly expenses: salaries $500,000, utilities $300,000, and advertising
$100,000.
Instructions
(a) Prepare a tabular summary of the transactions.
(b) Prepare the income statement, retained earnings statement, and statement of
financial position at July 31 for Legal Services Company Ltd
Debit Prepaid Rent
Credit Cash
- What is the purpose of this journal entry? Like what is a good title for this journal entry. Thank you.
Debit Rent Expense
Credit Prepaid Rent
- This journal entry is the same exact thing as Debit Insurance Expense and Credit Prepaid Insurance. Right?
Rent Expense increase because its an expense and Prepaid Rent is an asset and that decreases. So, you purchase rent expense and prepaid rent is acting like cash because you are paying for it. Is this statement correct?
Can you provide me a practice question or an example that I can calculate accrual basis to cash basis? Thank you.
Control Accounts and Incomplete Records
Bank
Balance b/d 40,000 Payments to suppliers 492,020
Cash sales 170,000 Cash purchases 32,500
Receipts from debtors 458,560 Rent 57,500
Motor vehicle 300,000 Fixtures 220,000
Bank interest 2,500 Rates 8,500
Commission 73,000 Wages 66,000
Balance c/d 53,960 General office expenses 11,500
Loan 78,000
Drawings 132,000
Total 1,098,020 1,098,020
List of balances:
Details Jan 1 Dec 31
Creditors 83,200 91,030
Debtors 94,500 82,400
Stock 75,500 95,600
Loan 194,000 116,000
Building 340,000 340,000
Motor vehicle 720,000 400,000
Fixtures 0 210,000
Rates prepaid 4,600 7,600
Commission owing 21,500 25,000
Wages owing 14,500 22,000
Additional notes:
Stock taken for personal use $9,500
Bad debt written off $8,500
Discounts allowed $3,400
motor vehicle sale was at net book value
REQUIRED:
the trial balance, statement of profit or loss, and
statement of financial position for New day Traders for the period( include all workings for the statement of affairs and control accounts please
Debit Insurance Expense
Credit Prepaid Insurance
- What does this journal entry mean? Insurance Expense increase because its an expense and Prepaid Insurance is an asset and that decreases. So, you purchase insurance expense and prepaid insurance is acting like cash because you are paying for it. Is this statement correct?
Debit Prepaid Rent
Credit Cash
- What does this journal entry mean? You make an advance payment which is the Prepaid Rent (asset) and you pay cash which decreases this account. Is this statement correct? Please correct my statement.
Control Accounts and Incomplete Records
Bank
Balance b/d 40,000 Payments to suppliers 492,020
Cash sales 170,000 Cash purchases 32,500
Receipts from debtors 458,560 Rent 57,500
Motor vehicle 300,000 Fixtures 220,000
Bank interest 2,500 Rates 8,500
Commission 73,000 Wages 66,000
Balance c/d 53,960 General office expenses 11,500
Loan 78,000
Drawings 132,000
Total 1,098,020 1,098,020
List of balances:
Details Jan 1 Dec 31
Creditors 83,200 91,030
Debtors 94,500 82,400
Stock 75,500 95,600
Loan 194,000 116,000
Building 340,000 340,000
Motor vehicle 720,000 400,000
Fixtures 0 210,000
Rates prepaid 4,600 7,600
Commission owing 21,500 25,000
Wages owing 14,500 22,000
Additional notes:
Stock taken for personal use $9,500
Bad debt written off $8,500
Discounts allowed $3,400
motor vehicle sale was at net book value
REQUIRED:
the trial balance, statement of profit or loss, and
statement of financial position for New day Traders for the period( include all workings for the statement of affairs and control accounts please)
3.a. Define elasticity of supply and find the price from the given statement:
If Es of a good is 2 and a firm supplies 200 units at price of Rs 8 per unit, then at what price will the firm supply 250 units. (5 Marks)
b. Calculate the elasticity of supply if a 15 %increase in the price of soya bean oil increases its supply from 300 to 345 units
B. Ware and Company performs all of its own accounting up to the trial balance stage. The CU Now and Then Inc., a firm of chartered accountants from the big city, prepares the adjusting entries and the financial statements. You are an auditor with CU Now and Then Inc., and have just completed the financial statements for B. Ware. You have just driven 800 kilometers to deliver these statements for an important business meeting that day and to begin some other audit work. When you open your files, you find that your working papers have been tampered with. The balance sheet, the worksheet, and the list of adjusting entries for B. Ware are missing. Only the income statement is present. The important meeting is only two hours away.
