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Rhaman Company had the following transactions in its first month of operations: 1. On incorporation, the company had issued 10,100 common shares in exchange for
Rhaman Company had the following transactions in its first month of operations:
1. | On incorporation, the company had issued 10,100 common shares in exchange for $9,200 cash and office furniture and equipment worth $900. | |
2. | Additional equipment costing $3,700 was purchased for cash. | |
3. | Supplies costing $500 were purchased for cash. | |
4. | Inventory costing $4,600 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 $7,400. The company received half of this amount in cash and will receive the remainder next month. | |
6. | By the end of the month, $400 of the supplies were used up. | |
7. | The equipment was depreciated $90 for the month. | |
8. | Operating expenses paid in cash during the month were $1,700. | |
9 | Dividends of $200 were declared and paid during the month. |
Calculate the following amounts for the month: (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Calculate the following amounts as at the end of the month:
i. Sales revenue $ ii. Cost of goods sold $ iii. Total expenses other than cost of goods sold $ iv. Net Income /(Loss) $ i. Cash on hand $ ii. Total assets other than cash $ iii. Total Liabilities $ iv. Share capital $ V. Retained earnings $Step by Step Solution
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