Reference no: EM132787248
Problem - The balance sheet of the company X as at 1.01.2018 is as follows:
|
Assets
|
Equity and Liability
|
|
Tangible fixed assets
|
10,000
|
Share Capital
|
20,000
|
|
Materials
|
10,000
|
Trade liability
|
5,000
|
|
Cash at Bank
|
5,000
|
|
|
|
Total Assets
|
25,000
|
Total liability and Equity
|
25,000
|
In January, 2018 the company made the following accounting transactions:
1. The total salaries earned by employees for January is 5,000. Out of which, 3,000 is paid on 30th January, while the remaining balance is still unpaid.
2. $4000 in the raw materials were requisitioned for use in the production.
3. 100 units of product "M" were manufactured and taken to the warehouse. Manufacturing cost of one unit was calculated at $20. Working in process need to be calculated.
4. At the end of January, the Co. X sold all finished goods at $30 per unit on for cash and goods shipped to the supplier.
Required -
1. Record all transaction into the T-accounts.
2. Close all T-accounts and write a total balance in the right place. Use cost by function classification.
3. Calculate the net profit or loss at the end of the January.