Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rhaman Company had the following transactions in its first month of operations: 1. On incorporation, the company had issued 8,600 common shares in exchange for

Rhaman Company had the following transactions in its first month of operations:

1. On incorporation, the company had issued 8,600 common shares in exchange for $7,800 cash and office furniture and equipment worth $800.
2. Additional equipment costing $3,100 was purchased for cash.
3. Supplies costing $400 were purchased for cash.
4. Inventory costing $3,900 was acquired on account. Later in the month, the company paid half of the amount owed. It will pay the remainder next month.
5. The entire inventory was sold to customers for $6,200. The company received half of this amount in cash and will receive the remainder next month.
6. By the end of the month, $300 of the supplies were used up.
7. The equipment was depreciated $80 for the month.
8. Operating expenses paid in cash during the month were $1,500.
9 Dividends of $200 were declared and paid during the month.

Calculate the following amounts for the month:

i. Sales revenue $ 6,200
ii. Cost of goods sold $
iii. Total expenses other than cost of goods sold $
iv. Net Income / (Loss) $

Calculate the following amounts as at the end of the month:

i. Cash on hand $
ii. Total assets other than cash $7,020
iii. Total Liabilities $1,950
iv. Share capital $ 8,600
v. Retained earnings $

Need help filling in the rest of the amounts

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_2

Step: 3

blur-text-image_3

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

New Perspectives In Accounting Ethics

Authors: Emerald Group Publishing Limited

23rd Edition

1785608673, 9781785608674

More Books

Students also viewed these Accounting questions