Financial Statement Handout
Financial Statement Handout
Financial Statement Handout
Q No.1
AUSTIN SOUND SEREO CENTER, INC.
TRIAL BALANCE
DECEMBER 31,2002
TITLE OF ACCOUNT DEBIT CREDIT
Cash 110,350
Account receivable 54600
Note receivable 83,000
Land 100,000
Inventory-opening 40,500
Supplies 650
Prepaid insurance 1200
Furniture and Fixture 83,200
Accumulated depreciation-furniture 2400
Account payable 47,000
Note payable (long-term) 12,600
Capital-Frank 175,000
Sales revenue 338,000
Sales discount 1400
Sales return and allowance 2000
Interest revenue 600
Purchases 89,300
Purchases discount 3000
Purchases return and allowances 1200
Freight in 5200
Rent expense 8400
TOTAL 579,800 579,800
ADJUSTMENT DATA:
1. Interest revenue earned but not yet collected Rs. 400
2. Supplies on hand Rs. 100
3. Insurance expired during the year Rs. 1000
4. Depreciation for the year Rs. 600
5. Interest expense incurred but not yet paid Rs. 200
6. Inventory on hand at the end of the year Rs. 42,000
7. 5% of A/c Receivable is estimated to be uncollectible.
8. Tax expense 25% of EBT
INSTRUCTIOS:
Adjusting entries
Income Statement and Balance Sheet
Q No 2: Ahmad and co. presented following data on June 30, 2002
Additional information;
1. Accrued commission revenue Rs.700
2. Accrued salaries expense Rs. 4500
3. Depreciation expense on equipment 5% and on furniture 10%
4. Interest expense 8% on overdraft is due but not paid by company yet.
5. Bad debts estimated on A/c receivable 3%
Required:
i) prepare adjusting entries
ii) prepare income statement
iii) prepare balance sheet
Q No.3
Following Trial balance and adjustment data is presented by Saleem , a sole-trader at the
end of its financial year Dec.31,2012.
Depreciation on equipment 2%
Tax rate is applied 20%
Unused rent at the end of the Dec 31 2500
Commission income earned by company 2000
Interest expense outstanding 2000
Office supplies in hand at the end of Dec 31 500
INSTRUCTION
1. ADJUSTING ENTRIES AND ADJUSTED TRIAL BALANCE
2. MULTIPLE STEP INCOME STATEMENT showing EBIT and EAT
3. BALANCE SHEET in classified form.
Q No.4 Saleem provided following Trial Balance on December 31, 2012 and adjustment
data.
Required:
1. Adjusting entries and adjusted trial balance
2. Multiple step Income Statement showing EBIT and EAT
3. Balance Sheet classified form
Q No.5
AUSTIN SOUND SEREO CENTER, INC.
TRIAL BALANCE
DECEMBER 31,2012
TITLE OF ACCOUNT DEBIT CREDIT
Cash 110,350
Account receivable 54600
Note receivable 8000
Inventory-opening 40,500
Supplies 650
Prepaid insurance 1200
Furniture and Fixture 183,200
Accumulated depreciation-furniture 2400
Account payable 47,000
Note payable (long-term) 12,600
Capital-Frank 100,000
Sales revenue 338,000
Sales discount 1400
Sales return and allowance 2000
Interest revenue 600
Purchases 89,300
Purchases discount 3000
Purchases return and allowances 1200
Freight in 5200
Rent expense 8400
TOTAL 504,800 504,800
ADJUSTMENT DATA:
9. Depreciation for the year $ 600
10. Inventory on hand at the end of the year $ 42,000
11. Tax rate is 40% applied
INSTRUCTIOS:
Multiple step Income Statement showing EBIT and EAT
Classified Balance Sheet