Accounting Answers

On 4 December 2020, SA Attorneys did a debit card payment of R11 500 to SA Insurers, for the monthly short-term insurance expense. SA Attorneys and SA Insurers are a registered VAT vendors.

Which account(s) will be debited, and which account(s) will be credited in the general ledger of SA Attorneys?

A. Determine the amount of the elements of SCI using the information provided.

DG Trading

Statement of Comprehensive Income

For the period ended, December 31, 20xx

-Advertising Expense - 5,000

-Bad Debts Expense - 10,000

-Commission Expense - 7,500

-Depreciaiton Expense - Furniture & Fixtures - 5,000

-Insurance Expense - 500

-Interest Expense - 2,000

-Light and Water Expense - 1,000

-Merchandise Inventory, December 31, 20xx - 30,000

-Merchandise Inventory, January 1, 20xx - 28,500

-Miscellaneous Selling Expense - 1,500

Office Salaries - 10,000

-Purchase Returns and Allowances - 1,500

-Purchases - 110,000

-Rent Expense - 7,500

-Sales - 237,500

-Sales Returns and Allowances - 2,500

-Sales Salaries - 15,000

-Taxes and Licenses - 2,500

B. Use the following to show your solution and underline twice your final answer.

1. Net Sales

2. Net Purchases

3. Cost of Sales

4. Gross Profit

5. Selling and Administrative Expenses

6. Net Income

Harmonious Company acquired a patent for a drug with a remaining legal and useful life of sixyears on January 1,2014 for P5,400,000.On January 1, 2016, a new patent is received for an improved version of the same drug. The new patent has a legal and useful life of twenty years.

What is the amortization expense for 2016?

a. 900,000

b. 200,00

c. 180,00

d. 300,000

A. Prepare a Function of Expense SCI using the information below.

JJ Trading

December 31, 20xx

Advertising Expense - 17,500

Amortization Expense - 5,000

Bad Depts Expense - ?

Depreciation Expense - 12,500

Freight In - 4,590

Gain on Sale of PPE - 2,732

Interest Expense - 2,838

Interest Income - 2,722

Purchase Discount - 4,100

Purchase Returns - 2,732

Purchases - 229,995

Rent Expense - 30,000

Salaries Expense - 40,000

Sales - 382,492

Sales Discount - 6,650

Sales Returns and Allowances - 2,727

Utilities Expense 27,500

Based on actual physical count, inventory balance are as follows:

January 1, 20xx - 12,727.50

December 31, 20xx - 10,382.50

Additional Information:

a. Bad debts is 4 percent of net sales

b. Depreciation of 2,500 is for equipment used in the administrative office.

c. Amortization is attributed to office improvements.

d. 40 percent of salaries are for sales officers.

e. Utilities for the store represent 35 percent of the utilities expense.

f. Rental for office space is 10,000

A. Illustrate the operating cycle of a merchandising business.

B. Identify the following expense accounts if it is General & Administrative or Selling.

1. Advertising Expense

2. Salaries of Accounting Staff

3. Marketing Expenses

4. Store rental fees

5. Salesperson salaries and benefits

6. Depreciation of office equipment

7. Utilities used by the store

8. Freight out

9. Depreciation of Store building

10. Office Supplies Expense

I. Analyze the July 2021 transaction of Little Miss Wow Company. Put (T) if it is part in the preparation of Statement of Comprehensive Income and NA if it is not part in the preparation of SCI.

1. The company made an initial cash deposit amounting to 80,000.

2.The owner bought shop's office chairs and tables for 20,000, paying 5,000 and the balance on account.

3. Miss Wow paid advance rent to 24,000.

4. Supplies expence for the month is 12,500.

5. The company's total revenue for the month of july amounted to 150,000.

6. An employe of the shop was paid for 7,500.

7. Her receivable amounted to 3,500 for services made to Customer A.

8. The owner paid for internet subscription at 1,700.

9. Light and water expense for the month amount to 8,000

10. Miss Wow made a loan to OOTD Bank amounting to 50,000 payable in 5 years.

II. Miss Wow, the service business owner, asks you to prepare her statement of comprehensive income for the month.