Question
n September 2021, Philomene and Alice have just graduated in architecture and have decided to set up their own architectural firm: Philali Archi. They both
n September 2021, Philomene and Alice have just graduated in architecture and have decided to set up their own architectural firm: Philali Archi.
- They both decide early September 2021 to put 50,000 in their practice, Philomene in cash and Alice in equipment.
- The furnishing of their office in September 2021 costs 40,000, paid immediately in cash.
- At the end of September 2021, Alice wins a tender for the expansion of a bubble bar for 40,000. The work is finished by mid-December 2021. The payment is made for half of it at this date; the balance will be paid in January of the following year.
- Office expenses for this term are paid for 5,000 in October 2021.
- On November 1st 2021, a friend of theirs asks them to refurbish his huge London apartment. They receive upfront 15,000 for the preliminary study which will be delivered in January 2022.
- On December 1st 2021, They place a repeating advertisement over 12 months in a decoration magazine for 6,000, paid in December 2021.
- In December 2021, they negotiate with the owner of their office to pay the rent for the first semester of next year only at the end of June 2022 for 10000.
- The corporate tax represents 30% of the total taxable income.
What is the total amount of Assets?
| 115,000 | ||
| 149,500 | ||
| 151,000 | ||
| 129,500 |
What is the cash position on december 31st ?
| 2,000 | ||
| 15,500
| ||
| 5,000 | ||
| 34,000 |
What is the amount of Liabilities?
| 28,100 | ||
| 24,150 | ||
| 27,200 | ||
| 25,350 |
What is the Profit before tax ?
| 35,250 | ||
| 34,500 | ||
| 6,500 | ||
| 24,500 |
The sales for that years amounts to
| 20,000 | ||
| 70,000 | ||
| 40,000 | ||
| 55,000 |
If interest on a loan have been incurred in 2021 but still unrecorded at the end of 2021,you should record the following transactions in the T-accounts :
| Decrease Prepaid Expenses and increase Expenses | ||
| Increase Expenses and increase Accrued Expenses | ||
| Decrease Expenses and Increase Accrued Expenses | ||
| Increase Prepaid Expenses and decrease Expenses |
How much will Alice and Philomene pay for the corporate tax?
| 1,000 | ||
| 10,350 | ||
| 21,600 | ||
| 14,670 |
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