Question
Assume that you are an accountant at the provided company. Your manager provided you with the accounts balances for the year ended December 31, 2018.
Assume that you are an accountant at the provided company. Your manager provided you with the accounts balances for the year ended December 31, 2018. However, while you were preparing the trial balance and comparing numbers with the documents you have, you have found that some numbers are missing!
Use the following information to prepare a trial balance and figure out the missing numbers.
Cash | 720,000 | Interest revenue | 215,000 |
Bonds payable | 485,000 | Sales discounts | 70,000 |
Sales returns and allowances | 80,000 | Equipment | 1,470,000 |
Land | 480,000 | Accounts payable | 490,000 |
Buildings | 1,640,000 | Notes payable (to banks) | 300,000 |
Unsecured notes payable (long-term) | 1,600,000 | Notes receivable | 445,700 |
Administrative and general expenses | 220,000 | Payroll taxes payable | 177,591 |
Interest expense | 175,750 | Accumulated depreciation equipment | 292,000 |
Loss from impairment of plant assets Share capital ordinary | 85,000 | Rent payable (short-term) | 45,000 |
Income taxes receivable | 97,630 | Long-term rental obligations | 531,700 |
Accumulated depreciation- Buildings | 270,200 | Share capitalordinary, 1 par value | 200,000 |
Income taxes payable | 98,362 | Trading securities | 70,000 |
Share capitalpreference, 10 par value | 150,000 | Goodwill | 192,420 |
Prepaid expenses | 20,200 | Selling expenses | 100,000 |
Retained earnings | ? |
Hind Althumairi
Purchases and sales transactions during the year were as follows:
Transaction date | purchases | date | sales | ||
units | Unit price | units | Unit price | ||
1/1/18 | 30000 | 30 | 4/1/18 | 30000 | 35.00 |
3/4/18 | 15000 | 30.08 | 9/4/18 | 15000 | 36.00 |
6/5/18 | 7000 | 30.4 | 23/5/2018 | 3000 | 37.00 |
7/6/18 | 3500 | 30.5 | 4/6/18 | 1400 | 39.00 |
21/8/18 | 8000 | 30.8 | 23/11/18 | 10600 | 40.00 |
19/11/18 | 5000 | 30.9 |
If you also knew that accounts receivable at the beginning of the year had a balance of $950,000, allowance for doubtful accounts had a credit balance of $15,000. Management estimates that 9% of receivables will be uncollectable. During the year, management wrote off a $75,000 balance owed by the corporation.
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