Preparation of a proper income statement and balance sheet

Assignment Help Financial Accounting
Reference no: EM132769483

L&T is a company specialized in selling Phones. Its first month of operation is January 2016 in which the following transactions were undertaken

Jan1: issue capital stock of £330,000in cash
Jan2: Borrowed £230,000 from the bank at an annual interest rate of 5.5%
Jan3: Purchased 100 Phones at £500 per Phone
Jan4: Purchased Building at £60,000. The company paid £25,000 and agreed to pay the rest on a note payable
Jan8: Paid rent for the month of January at £1650
Jan15: Received investment of £160,000 from the owners
Jan20: Sold 47 phones at £1150 each
Jan24: Purchased Furniture at £27,000. The company paid £12000 and agreed to pay the rest on account
Jan27: Paid salaries at £5000
Jan29: Paid one month of interest
Jan 30: Paid dividends of £900
Jan 31: Paid income taxes at 11.3%

Required:

Problem 1: Preparation of a proper Income Statement and Balance sheet for L&T

Reference no: EM132769483

Questions Cloud

What is the no-arbitrage french price of one sanofi share : Suppose 10 underlying Sanofi shares are packaged into one Sanofi ADR. What is the no-arbitrage French price of one Sanofi share in Paris, in Euro
Customer value proposition and customer segments : There are nine building blocks in the business model canvas, they are: customer value proposition, customer segments, channels, customer relationships
Should the monetary amount assigned to the land : Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Should the monetary amount assigned to the land
Evaluation of merger or acquisition : You will be applying the concepts learned throughout this course to an analysis of a merger or an acquisition.
Preparation of a proper income statement and balance sheet : Preparation of a proper Income Statement and Balance sheet for L&T. Borrowed £230,000 from the bank at an annual interest rate of 5.5%
Describe how Reliable Repair Service should record the land : On September 3, Reliable Repair accepted the seller's counteroffer of $167,500. Describe how Reliable Repair Service should record the land
Create strategic objective for the company. : Create a strategic objective for the company. Determine methods for collecting data and measuring success of the strategic plan.
Should Dispatch Delivery Service record the interest payment : Josh paid interest of $4,500 on a personal loan of $75,000 that he used to begin the business. Should Dispatch Delivery Service record the interest payment
Prepare an income statement for July : Prepare an income statement for July, a statement of owner's equity for July, and a balance sheet as of July 31, 2018

Reviews

Write a Review

Financial Accounting Questions & Answers

  What would be the balance of retained earnings at december

The following information was extracted from the accounts of Sheridan Company at December, What would be the balance of retained earnings at December 31, 2020?

  Complete the journal entry for the sale and the inventory

Byers was paid $100,000 cash to service the pencils. Complete the journal entry for the sale and the inventory.

  What is the carrying amount of the accounts receivable

The carrying amount of Accounts Receivable, Assuming the allowance method is used," What is the carrying amount of the Accounts Receivable after the write off?

  Calculate the net present value

FIN700–Financial Management - Calculate the net present value (NPV), that is, the net benefit or net loss in present value terms of the proposed purchase costs

  Prepare the journal entry on the maturity date of the note

Make the journal entry on the maturity date of the note. Note: L. Tron honoured the note. Record your answers on the Excel assignment sheet.

  Standard costing and understanding variances

Discuss the importance of standard costing and understanding variances. If a supplier were to offer you cheaper goods (price and quality), what additional information would you need before making a decision to use the cheaper materials?

  How much will the person have in principal and interest

2 years and 3 months at an interest rate of 6% simple interest. How much will the person have in principal and interest at the end of the period?

  Estimate the value of this parking garage property

You have been hired to evaluate for appraisal a parking garage with 196 spaces.Each space rents for $85 per month or $5 per day (both values are for weekday parking only). There are eight holidays (assume they are weekdays) per year that parking is e..

  Explain generally accepted accounting principles

Public companies are required to publish annual financial statements. Suggest the major benefits of companies making financial statement information available to employees. Briefly explain generally accepted accounting principles (GAAP), and describe..

  How many years will take the company to pay back the loan

If Cosmo Ltd wants to pay $250 per month how many years will it take the company to pay back the loan? (Show answer correct to two decimal places.)

  Discuss the pros and cons of ratio analysis

Discuss the pros and cons of these methods of financial statement analysis: ratio analysis, vertical analysis, and horizontal analysis

  Determining equilibrium price-quantity

What is the equilibrium price? What is the equilibrium quantity? Using Excel and prices in the range of $1 to $10, generate the demand and supply schedules for the initial equations.

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