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a) Prepare journal entries for all transactions. b) Prepare journal entries needed adjustments c) Prepare an SCI for the year ended 31 December 20X8. Ignore
a) Prepare journal entries for all transactions.
b) Prepare journal entries needed adjustments
c) Prepare an SCI for the year ended 31 December 20X8. Ignore income tax.
Shirt Shack Ltd. is a retail store operating in a downtown shopping mall. On 1 January 20X8, it reported the following SHIRT SHACK LIMITED Statement of Financial Position As of 1 January 20X8 Cash $ 3,500 24,500 1,100 39,600 17,600 Accounts receivable (net of allowance of $1,900) Prepaid rent (rental deposit) Inventory Leasehold improvements (net) Total assets $ 86,300 S 32,500 3,700 Accounts payable Accrued wages payable Accrued interest payable Accrued rent payable Notes payable, 10% Common shares Retained earnings 200 15,800 10,800 23,300 Total liabilities plus equity $ 86,300 During 20X8, the company reported the following a. Cash paid to employees (salaries and commissions), $68,000. Cash paid to suppliers' for payment of accounts payable, $91,200 (Note payables to all suppliers are for inventory purchases.) b. Cash collected on customer accounts receivable accounts, $222,800 C. On 31 December 20X8, a physical inventory count revealed that inventory was $42,600. The company uses the periodic inventory system d. At 31 December 20X8, customers owed Shirt Shack $35,500, and the company owed its suppliers for inventory purchases $14,200. Of the accounts receivable, aging analysis indicated that $4,100 was expected to be uncollectible. No accounts were written off in 20X8 e. Cash paid to landlord, $16,800 ($1,400 per month for 12 months). Shirt Shack is required to pay monthly rent and at year-end, make an additional payment to bring the total rent e made in January 20x9 f. Cash paid for miscellaneous operating expenses, $7,500 g. Cash paid in dividends, $16,000, in interest, $1,780. No interest is owing at 31 December 20X8 h. Shirt Shack owed employees $650 in wages and $2,500 in commissions at year-end i The leasehold improvements were acquired on 1 January 20X7. They had an expected life of 10 years and were installed in leased premises that had a five-year lease on 1 January 20X7 xpense up to 10% of sales. This payment will be Shirt Shack Ltd. is a retail store operating in a downtown shopping mall. On 1 January 20X8, it reported the following SHIRT SHACK LIMITED Statement of Financial Position As of 1 January 20X8 Cash $ 3,500 24,500 1,100 39,600 17,600 Accounts receivable (net of allowance of $1,900) Prepaid rent (rental deposit) Inventory Leasehold improvements (net) Total assets $ 86,300 S 32,500 3,700 Accounts payable Accrued wages payable Accrued interest payable Accrued rent payable Notes payable, 10% Common shares Retained earnings 200 15,800 10,800 23,300 Total liabilities plus equity $ 86,300 During 20X8, the company reported the following a. Cash paid to employees (salaries and commissions), $68,000. Cash paid to suppliers' for payment of accounts payable, $91,200 (Note payables to all suppliers are for inventory purchases.) b. Cash collected on customer accounts receivable accounts, $222,800 C. On 31 December 20X8, a physical inventory count revealed that inventory was $42,600. The company uses the periodic inventory system d. At 31 December 20X8, customers owed Shirt Shack $35,500, and the company owed its suppliers for inventory purchases $14,200. Of the accounts receivable, aging analysis indicated that $4,100 was expected to be uncollectible. No accounts were written off in 20X8 e. Cash paid to landlord, $16,800 ($1,400 per month for 12 months). Shirt Shack is required to pay monthly rent and at year-end, make an additional payment to bring the total rent e made in January 20x9 f. Cash paid for miscellaneous operating expenses, $7,500 g. Cash paid in dividends, $16,000, in interest, $1,780. No interest is owing at 31 December 20X8 h. Shirt Shack owed employees $650 in wages and $2,500 in commissions at year-end i The leasehold improvements were acquired on 1 January 20X7. They had an expected life of 10 years and were installed in leased premises that had a five-year lease on 1 January 20X7 xpense up to 10% of sales. This payment will beStep by Step Solution
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