Question
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):
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.
On 15.12.2019 the company received an invoice for renovation services in the amount of 8 200.
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.
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).
Step by Step Solution
3.50 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
Inventory Traded Goods Account Particulars Amount Date Particulars Amount Opening Balance 5000 51220...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started