n September 2021, Philomene and Alice have just graduated in architecture and have decided to set up their own architectural firm: Philali Archi.

1. They both decide early September 2021 to put 50,000 in their practice, Philomene in cash and Alice in equipment.

1. The furnishing of their office in September 2021 costs 40,000, paid immediately in cash.
2. 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.
3. Office expenses for this term are paid for 5,000 in October 2021.
4. 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.
5. On December 1^st 2021, They place a repeating advertisement over 12 months in a decoration magazine for 6,000, paid in December 2021.
6. 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.
7. 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 31^st ?

		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