Reference no: EM133007615
Question - The following information relates to Sonata Ltd.
(a) At the beginning of the accounting period the company has a salary payable liability of $300 and at the reporting date a salary payable of $400. During the year the salary expense shown in the income statement was $700.
(b) At the beginning of the accounting period the company has property plant and equipment (PPE) with a carrying amount of $300. At the end of the accounting period, the carrying amount of the PPE is $1,000. During the year depreciation charged was $90, a PPE with a carrying amount of $70 was sold for $50.
(c) At the beginning of the accounting period the company has retained earnings of $1000 and at the end of the accounting period the balance of the retained earnings is $1500. The reported profit for the year was $3800.
(d) Sonata Ltd also provides you with the following information on its sale and collection of accounts receivable:
Sales for the year $20,000
Discounts provided to customers for early payment $500
Doubtful debts expense for the year $200
Opening balance of accounts receivable $4,000
Closing balance of accounts receivable $3,500
Opening balance of the allowance for doubtful debts $400
Closing balance of the allowance for doubtful debts $320
Required -
(a) Calculate the cash paid for salary?
(b) Calculate the cash paid to buy new PPE?
(c) Calculate the dividend paid?
(d) Calculate cash collected from customer?
|
Difference between gross profit and profit margin
: Explain difference between Gross Profit and Profit Margin. Make a list of possible explanations for the pattern observed in the gross profit and profit margins
|
|
Determine the capital balances of fax
: Determine the capital balances of Fax, Bel, and Rob after Rob's admission to the partnership if goodwill is not recorded
|
|
Indicate the account name and the amount
: For each item, indicate the account name and the amount to be included as a current liability on Electrical's balance sheet prepared at 30 June 2020
|
|
Calculate cost of sales
: A year-end inventory count revealed inventory of $324,800. Assume that the company uses periodic inventory system, calculate cost of sales
|
|
Calculate cash collected from customer
: At the beginning of the accounting period the company has a salary payable liability of $300. Calculate cash collected from customer
|
|
What would be the entries to record the sales transaction
: Assume that during the year, total inventory was sold for $2,800,000 on credit. What would be the entries to record the sales transaction
|
|
Journalize the entries to record these transactions
: Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. Journalize the entries to record these transactions
|
|
Make an amortization table for the mortgage
: You take out a $250,000 mortgage on 1/1/2021. Assume the mortgage is a 15-year mortgage with an annual rate of 2.8%. Make an amortization table for the mortgage
|
|
Calculate the total cost assigned to units completed
: Current costs added equal $220,000 for materials and $832,200 for conversion. Calculate the total cost assigned to units completed from beginning Inventory
|