Question
Here is an extract from the accounts before adjustments of company XYZ as of November 30, 2020. Bank loan (short term) 60,000 Cash 120,500 Customers
Here is an extract from the accounts before adjustments of company XYZ as of November 30, 2020.
Bank loan (short term) 60,000 Cash 120,500 Customers 89,000 Sale of goods 210,000 Stock of office supplies 7,200 Buildings 820,000 Advertising 1,400 Notes payable (long term) 16,000 Accumulated amortization - Pickup trucks 26,700 Suppliers 195,000 Stock of goods 130,800 Bank interest payable 16,200 Advertising payable 7,400 Retained earnings 22,700 Mortgage loan (long term) 250 200 Share capital 500,000 Accumulated depreciation - Buildings 163,500 Salaries 130,900 160,000 vans Miscellaneous charges 7,900
Here are the operations carried out in December 2020: Dec. 01: payment of all bills to be paid 02: supplier payment: $ 15,600 03: additional contribution from a shareholder: $ 50,000 04: cash purchase of land: $ 130,000 05: collection from customers: $ 5,400 06: sale of goods to customers for $ 40,000 of which 50% paid in cash. The remaining balance will be cashed on January 01, 2021. The cost of selling goods sold is $ 13,000 09: repayment of the bank loan: $ 3,500 10: payment of the entire advertising debt 30: payment of salaries to employees: $ 11,900 31: recording of annual depreciation charges for buildings and vans, the respective amounts of which amount to $ 2,000 and $ 1,500 31: The final balance of the "stock of office supplies" account must be $ 6,200
Questions:
1. Prepare the trial balance for November 30, 2020. 2. Make the entries in the general journal to record the transactions for December 2020. 3. Post the entries in the general ledger. 4. Prepare the trial balance as at December 31, 2020. 5. Prepare the income statement for the year ended December 31, 2020. XYZ is not subject to tax. 6. Prepare the statement of changes in equity for the year ended December 31, 2020. 7. Prepare the statement of financial position for the year ended December 31, 2020.
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