Question
For each of the following questions: Prepare the necessary journal entries for year-ended 31 December 2018. Prepare the Income Statement ( Statement of Profit or
For each of the following questions:
- Prepare the necessary journal entries for year-ended 31 December 2018.
- Prepare the Income Statement (Statement of Profit or Loss and Other Comprehensive Income), classifying expenses by function, for the year ended 31 December 2018.
- Prepare the Statement of Changes in Equity for the year ended 31 December 2018.
- Prepare the Balance Sheet (Statement of Financial Position) as at 31 December 2018.
Question 3
The following account balances are taken from the General Ledger of P&G Co. on 31 December 2018, the end of its fiscal year.
| $ |
Accounts Payable | 47,300 |
Accounts Receivable | 91,000 |
Accumulated depreciation furniture and fittings | 21,300 |
Accumulated depreciations plant and equipment | 46,780 |
Allowance for Bad Debts (credit balance) | 1,800 |
Cash | 34,400 |
Furniture and fixtures | 65,500 |
Inventories | 84,000 |
Loans Payable | 120,000 |
Plant and equipment | 227,500 |
Share Capital, no par | 100,000 |
Retained earnings, 31 December 2017 | 108,020 |
Dividends interim | 9,000 |
Sales | 409,000 |
Sales Returns & Discounts | 20,430 |
Purchases | 184,000 |
Purchases Discounts | 6,780 |
Selling Expenses | 48,650 |
Administrative Expenses | 39,900 |
Other operating Expenses | 17,000 |
Office Rent Expenses | 36,000 |
Interest Expense | 3,600 |
Additional information:
- The Administrative expenses incorrectly include $12,000 for office furniture purchases. The purchases were made on 1 May 2018.
- Depreciation of 10% (to the nearest month for additions during the year).
- Inventories based on a physical count at 31 December 2018 were determined to be $60,000.
- Tax payable estimated as $4,000.
- The loans were obtained on 1 May 2018 and are repayable in four equal annual installments with the first payment due on 1 May 2019. The interest charged is 6% per annum payable on a semi-annual basis.
- The board of directors proposed final dividends of $9,000 for the year-ended 31 December 2018.
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