Analyze and record these transactions in financial statement

Assignment Help Financial Accounting
Reference no: EM133560835

Question: CM ltd is a commercial distributor of plant-based meat substitutes to grocery stores and chains in western Canada. CM ltd and the company's management team have successfully grown the operation to the point where they are able to distribute their products nationally. CM ltd had the following transactions in the month of September. September 1: CM Ltd borrowed $20,000 from the bank. The interest rate on the loan is 3% per annum, and the terms of the loan state that the loan is to be repaid at the end of each month in the amount of $1,500 per month plus interest. September 1: CM Ltd renewed the annual insurance policy covering its warehouse and paid the premium for the 12-month policy in the amount of $5,700. The term of the policy is from September 1 to august 31 of the following year. September 4: the company purchased inventory at a cost of $33,000 from a producer on account. September 10: CM Ltd recorded its sales for the first 10 days of the month. Total sales (half in cash and half on account) amounted to $21,000 and the inventory related to these sales was determined to have a cost of $14,700. September 19: paid $9,600 suppliers who had previously sold CM ltd inventory on account. September 27: paid employee wages in the amount of $4,500. September 29: CM ltd accepted a payment of $9,600 from a local independent grocer who placed an order for 960kg of plant based sausages to be delivered in mid October for an Oktoberfest promotion. September 30: CM ltd made the necessary month end entry related to the insurance policy September 30: CM ltd made the necessary month end entry related to record the bank loan. Analyze and record these transactions in a financial statement using accounting equation template

Reference no: EM133560835

Questions Cloud

Shares its knowledge with the people who care about them : Established in response to the increased need for medical care of injured, ill and orphaned wildlife. With a full-time staff of 16 and 6 summer interns
What is false about japan hosting the rugby world cup 2019 : What is false about Japan hosting the Rugby World Cup 2019? Group of answer choices Host Japan was proactive with regard to beer production
What was impact of lincolns address on nation as a whole : What was the impact of Lincoln's address on the nation as a whole? How did his use of words and tone affect that impact?
How have one or more social determinants impacted health : How have one or more social determinants impacted your health? Describe an encounter that you have had with a public health intervention
Analyze and record these transactions in financial statement : CM ltd made the necessary month end entry related to record the bank loan. Analyze and record these transactions in a financial statement using accounting
What are the challenges facing dakota press : what are the challenges facing Dakota Press? Explain how diversity manifests within organizations and their influences on managerial considerations.
How to use the website to attend meetings and what to expect : So you have agreed to review this information with your client and explain to them how to use the website to attend meetings and what to expect.
Determine its use and the type of loadings it will resist : determine its use and the type of loadings it will resist. It should be in a way that possess enough safety against loads like earthquake or overloading
What was the opinion of the american public about the bill : Based on each of your chosen media outlets, what was the opinion of the American public about the bill?

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much cash peter and co actually has at december

Prepare bank reconciliation to determine how much cash Peter & Co. actually at December 31, 2019.The Cash account of Peter & Co. reported a balance of $2,500

  What are some inputs to the data dictionary

What are some inputs to the data dictionary? According to framework for audit of source data controls, tests of control audit procedures involves

  Explain the consequences of wrongly applying the process

Explain to the student why it is important and the consequences of wrongly applying the process. A student has been presented with the following fact pattern.

  How many semiannual interest payments will be made on bond

On January 1, 2019, the Gill Company issued bonds with a par value. How many semiannual interest payments will be made on these bonds over their life?

  Financial accounting theory qualitative analysis total

qualitative analysis total point value 40 you must complete questions 1 2 amp 3 and any one of the other five listed

  How do prepare journal entries for the january transaction

Prepare journal entries for the above January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required")

  Create a spreadsheet to calculate the below financial ratios

Create a spreadsheet to calculate the below financial ratios. Complete a comparison between the two years for this company and remember to use Excel formulas and link cells when possible.

  How many bonds does the company have to sell

What would be the issuing price of these bonds? How many bonds does the company have to sell in order to achieve its target?

  Unlimited life of company

Unlimited life of company that continues in existence after original owners die or leave the company

  Which of fringe benefits do not allow for discrimination

In order for a no-additional-cost services fringe to be excluded from an employee's gross income, which the following is not allowed

  How much of that amount will be interest

Repayment of the loan involves payments of $8711.00 at the end of every three months for six years. How much of that amount will be interest

  What amount would monochrome calculate as the stand-alone

What amount would Monochrome calculate as the stand-alone selling price of the five-year right to operate as a Monochrome Muffler retail establishment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd