question archive NP Enterprises operates several miniature golf courses, all of which are located on rented land within city parks
NP Enterprises operates several miniature golf courses, all of which are located on rented land within city parks
Subject:AccountingPrice: Bought3
NP Enterprises operates several miniature golf courses, all of which are located on rented land within city parks. Shown below is the company’s adjusted trial balance at December 31, 2019. The company closed its accounts at the end of each calendar year.
NP Enterprises
Trial Balance
Dec 31, 2019
|
Cash |
Rs 41,100 |
|
|
Accounts Receivable |
7,800 |
|
|
Buildings |
180,000 |
|
|
Accumulated Depreciation: Buildings |
|
Rs 36,000 |
|
Golf Course Structures |
270,000 |
|
|
Accumulated Depreciation: Golf Course Structures |
|
90,000 |
|
Account Payable |
|
23,100 |
|
Salaries Payables |
|
6,900 |
|
Nick Palmer, Capital (December 31, 2018) |
|
331,560 |
|
Nick Palmer, Drawing |
75,000 |
|
|
Admissions Revenue |
|
576,000 |
|
Advertising Expense |
45,000 |
|
|
Rent expense |
108,000 |
|
|
Repairs Expense |
15,600 |
|
|
Salaries Expense |
237,000 |
|
|
Light & Power Expense |
13,500 |
|
|
Depreciation Expense: Buildings |
18,000 |
|
|
Depreciation Expense: Golf Course Structures |
45,000 |
|
|
Insurance Expense |
7,560 |
|
|
|
Rs 1,063,560 |
Rs 1,063,560 |
Instructions: (10 Marks)
How the useful life of Buildings and of Golf Course Structures can be calculated based on the above trial balance (Show the calculation and the explain the answer in your own words)
Prepare an income statement and a statement of owner’s equity for the year ended December 31, 2019? Also explain the impact on net income upon the increase in company’s revenue, and the impact on company’s capital upon the increase of drawings?
Prepare a balance sheet as of December 31, 2019? Explain the concept of accumulated depreciation in the balance sheet of the company in your own words?
