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The balance sheet of the company ABC as at 01.12.2019: ASSETS EQUITY & LIABILITIES Inventory: Traded goods 5 000 Shareholders equity 30 000 Receivables 25

The balance sheet of the company ABC as at 01.12.2019:

ASSETS

EQUITY & LIABILITIES

Inventory: Traded goods

5 000

Shareholders’ equity

30 000

Receivables

25 000

Deferred income*

10 000

Cash and cash equivalents

10 000

Accrued cost**

10 000

Total assets

50 000

Total equity & liabilities

50 000

* Advanced collected from customer in November 2019. ** Renovation services conducted in November 2019, no invoice in November.

In December (costs by nature):

  1. On 5.12.2019 the company delivered 20% of goods to the customer for which it received an advance. The company delivered goods at a value of 800.

  2. On 15.12.2019 the company received an invoice for renovation services in the amount of 8 200.

  3. On 31.12.2019 the company calculated the energy used in December 1 350. The company will pay the amount at the beginning of January 2020.

  4. On 31.12.2019 the company paid for the subscription of “The Wall Street Journal” for January-June 2020 period.


Required:

1. Open the T-accounts based on the Balance Sheet data.

2. Record all transactions in T-accounts and close all accounts on 31.12.2019. Calculate the amount of net income / (loss).

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