Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 The following is the statement of financial position of TT and Co, at the end of its first year of trading: T. The

image text in transcribed
image text in transcribed
Question 1 The following is the statement of financial position of TT and Co, at the end of its first year of trading: T. The accrued expenses consisted of wages (2630) and electricity ( 6620). During 2016 , the following transactions took place: 1. The owners withdrew equity in the form of cash of 20,000. 2. Premises continued to be rented at an annual rental of 20,000. During the year, rent of 15,000 was paid to the owner of the premises. 3. Rates on the premises were paid during the year as follows: for the period 1 April 2016 to 31 March 2017, 1,300. 4. A second delivery van was bought on 1 January 2016 for 13,000. This is expected to be used in the business for four years and then to be sold for 3,000. 5. Wages totalling 36,700 were paid during the year. At the end of the year, the business owed f860 of wages for the last week of the year. 6. Electricity bils for the fint fhree quarters of the year and 4620 for the last quarter of the previous year were puis, totaling C1,829. Affer 31 December 2016 , but before the financial stakements had been finnlieed for the year, the bill for the last quarter arived. showing a change of 1690 . 7. Inventonies totaling 167,000 were bought on credit. 8. Inventories totaling 18,000 were bought for eath 9. Sales revemue on credit totaled f1 79,000 (cost 689,000). 10. Cash sales revenue totslod 54,000 (cost f25,000). 11. Receipts from trode receivables totaled f178,060. 12. Payments to tade payables totaled 21,000. 13. Van runming expenses paid totalod 16,200 : The business uses the straight-liae method for degsociating non-current assets. Required: Prepare a satement of financanl position as at 31 Dwocmber 2016 and an income statement for the year to that date

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

Environmental Audits

Authors: Cliff VanGuilder

1st Edition

1938549600, 978-1938549601

More Books

Students also viewed these Accounting questions

Question

4. Identify the stage of the road of trials in The Wizard of Oz.

Answered: 1 week ago