Accounting Answers

STATEMENT OF CHANGES IN EQUITY  

PRACTICE SET 29 

1. The Retrieval Company has the following changes in equity items in year-end 2020.  
2. Kindly prepare the SCE of the company which is owned by Ms. Charlott 

Balance on January 1, 2020= ₱ 550,000 

March 31: The entity earned a total of ₱ 250,000 for its first quarter of operations 

June 30: The owner withdraws money worth ₱ 300,000 

July 28: Ms. Charlott, the owner, invests a total of ₱ 920,000 worth of equipment in the entity. 

September 22: The entity earned a total of ₱ 450,000  

December 31: Total expenses paid at year-end amounts to ₱ 380,000 

The owner withdraws 500,000 from the business 

Balance on December 31, 2020=? 

STATEMENT OF CHANGES IN EQUITY  

PRACTICE SET 29 

1. The Retrieval Company has the following changes in equity items in year-end 2020.  
2. Kindly prepare the SCE of the company which is owned by Ms. Charlott 

Balance on January 1, 2020= ₱ 550,000 

March 31: The entity earned a total of ₱ 250,000 for its first quarter of operations 

June 30: The owner withdraws money worth ₱ 300,000 

July 28: Ms. Charlott, the owner, invests a total of ₱ 920,000 worth of equipment in the entity. 

September 22: The entity earned a total of ₱ 450,000  

December 31: Total expenses paid at year-end amounts to ₱ 380,000 

The owner withdraws 500,000 from the business 

Balance on December 31, 2020= ? 

A. Perform Horizontal SCI Analysis for 2020 uaing 2019 as base year.

1. What is the Peso Change and % Change if in 2020 the net sales is 1,687,500 while in 2019, the net sales is 1,350,000?

2. What is the Peso Change and % Change if in 2020 the Cost of Sales is 1,046,250 while in 2019, the Cost of Sales is 877,500?

3. What is the Peso Change and % Change if in 2020 the Selling Expenses is 270,000 while in 2019, the Selling Expenses is 162,000?

4. What is the Peso Change and % Change if in 2020 the Administrative Expenses is 135,000 while in 2019, the Administrative Expenses is 121,500?

5. What is the Peso Change and % Change if in 2020 the Interest Expense is 74,250 while in 2019, the Interest Expense is 54,000?

6. What is the Peso Change and % Change if in 2020 the Net Income is 162,000 while in 2019, the Net Income is 135,000?

A. Choose the letter that corresponds to the correct answer. (Refer to the information below)

(Murayta Enterprises

Statement of Comprehensive Income

For the period ended, December 31, 2020

-Sales - 52,352.50

-Cost of Goods Sold - 16,137.50

-Gross Profit - 36,215.00

-Selling Expenses - 17,662.50

-General and Admin Expenses - 6,407.50

-Operating Income - 12,145.00

-Interest Expense - 525.00

-Net Income - 11,620.00)

1.) Using the vertical analysis, the company's cost of sales is:

A. 31%

B. 22%

C. 1%

D. 100%

2.) Using the vertical analysis, the company's:

A. Operating Expenses is 46%

B. Operating Profit is 23%

C. Other Expense is 1%

D. All are correct

3.) Common-size SCI of Murayta Enterprises provides:

A. 70% gross profit

B. 30% cost of goods sold

C. 22% net income

D. 13% general and andministrative expenses

3.1 The balance in the bank statement on 28 February 2020 was R41 212 (CR). 3.2 Cheque no. 746 for R1 600, in favor of Umzinto Tennis Club for a donation, was reported lost by the club and must be cancelled. 3.3 Cheque no.795 for R4 800 appeared as outstanding in the Bank Reconciliation Statement on 31 January 2020. The cheque is still outstanding on 28 February 2020. 3.4 Cheque no. 820 for R5 280 and cheque no. 830 for R30 072, issued on 27 February 2013, have not been presented to the bank for payment: 3.5 A deposit of R28 000 made on 28 February 2020 was not reflected on the bank statement. 3.6 A deposit of R3 480 appeared in the bank statement and not in the firm’s books. This amount was deposited directly by the tenant, JK Cellular, for rent. 3.7 A cheque for R1 980, received from a debtor, L. Marcello, was deposited on 23 February 2020. The cheque was returned by the bank marked “Refer to drawer – account closed”.

REQUIRED Study the information given below and answer the following questions: 5.1 Calculate the profit or loss on the disposal of the equipment. (5) 5.2 Prepare the following note to the financial statements as at 28 February 2020: * Property, plant and equipment (15) INFORMATION The following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the beginning of the financial year:

Vehicles 300 000 Accumulated depreciation on vehicles 140 000 Equipment 130 000 Accumulated depreciation on equipment 75 000 Additional information 1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019. 2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019. 3) Depreciation is calculated on equipment at 10% per annum on cost. 4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance

The following information was taken from the accounting records of Fantasia Traders.

REQUIRED

3.1 Complete the Cash Receipts Journal and Cash Payments Journal of Fantasia Traders for February

Journals. Use the following format: (10)

3.2 Post to the Bank account in the General ledger. Balance the account. (4)

3.3 Prepare the Bank Reconciliation Statement as at 28 February 2020. (6)

INFORMATION

1. The balance in the bank account in the ledger of Fantasia Traders on 01 February 2020 was R21

960 (favorable).

2. The total of the bank columns of the cash journals on 28 February 2020 were as follows:

Cash receipts journal R216 000

Cash payments journal R209 840