Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can u show me the whole solutions how to calculate these questions? plz Rocket Richard plans to begin his consulting business as a proprietary company

can u show me the whole solutions how to calculate these questions? plz

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Rocket Richard plans to begin his consulting business as a proprietary company (RR Consulting Pty Ltd) on 1 January 2020. He has provided you with projected information for the first 36 months of operations. Rocket expects to pay income taxes of 30% on the company's profits six months after each year-end and will use the calendar year for financial reporting. Date Transactions Amount 01-Jan-2020 Open business bank account with transfer of personal funds $280,000 02-Jan-2020 EFT for rental of office space. 24 months at $5,000 per month. $120,000 13-Jan-2020 Office equipment purchased for cash to get discount from RRP of $50,000. $45,000 13-Jan-2020 Office equipment to be replaced in 5 years at an expected cost of $60,000. $60,000 20-Jan-2020 Bank loan approved and credited to account. Payable in 2023 $310,000 05-May-2020 Credit sales. EFT payment to be received in 90 days. $57,000 12-May-2020 Timesheets submitted for work performed. Payment to be made in 7 days. $6,900 07-June-2020 Cash sales. $30,500 08-Dec-2020 Credit sales. EFT payment to be received in 90 days. $39,000 25-Dec-2020 Timesheets submitted for work performed. Payment to be made in 7 days. $7,590 07-May-2021 Credit sales. EFT payment to be received in 90 days. $36,000 15-May-2021 Timesheets submitted for work performed. Payment to be made in 7 days. $9,700 18-May-2021 Cash sales. $99,000 11-June-2021 Used excess cash to make partial repayment on bank loan. $49,000 12-Dec-2021 Credit sales. EFT payment to be received in 90 days. $37,000 26-Dec-2021 Timesheets submitted for work performed. Payment to be made in 7 days. $10,670 11-May-2022 Credit sales. EFT payment to be received in 90 days. $60,000 18-May-2022 Timesheets submitted for work performed. Payment to be made in 7 days. $6,700 21-May-2022 Used excess cash to make partial repayment on bank loan. $36,500 15-June-2022 Cash sales. $49,000 17-Dec-2022 Credit sales. EFT payment to be received in 90 days. $26,000 31-Dec-2022 Timesheets submitted for work performed. Payment to be made in 7 days. $7370 Prepare the equity section of the 2021 balance sheet EQUITY Contributed capital Retained earnings $ 280,000 87,948 Total Equity S 367,948 Current liabilities section of the 2021 balance sheet Current Liabilities Income tax payable Wages payable Total current liabilities 24,789 10,670 35,459 $ Operating section of the 2022 cash flow statement Cash flows from operating activities Receipts from customers Payments to employees Payment for income tax Net cash provided from operating activities $ 146,000 (17,370) (24,789) $ 103,841

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

a. When did your ancestors come to the United States?

Answered: 1 week ago

Question

d. What language(s) did they speak?

Answered: 1 week ago

Question

e. What difficulties did they encounter?

Answered: 1 week ago