question archive How do i find the income statement and balance sheet for this Galaxy Soveineiors’ fiscal year ended 31 December 2020
Subject:AccountingPrice:0 Bought3
How do i find the income statement and balance sheet for this
Galaxy Soveineiors’ fiscal year ended 31 December 2020. Their net profit was $11,356, the firms’ equity (new capital) was reduced from $50,000 to $37,924. The firm was also selling merchandises as part of its revenue. The firm bought a lighting machine for $16,000 in 2018,
which has a lifespan of 4 years and its residual value was $1,000. The
firm used the reducing balance method for depreciation. The firm has
used the Average Costing Method (AVCO) to obtain the closing stock
valued at $1,184.
The firm’s transactions are listed as follows:
Sales S 7,360.00
Other Revenue S 22,640.00
Opening stock S 2,000.00
Wages and salaries S 9,200.00
Purchases S 5,760.00
Overheads (inclusive of depreciation) S 6,300.00
Lighting Machine (after depreciation) S 4,000.00
Premise S 100,000.00
Short-term loan S 1,000.00
Bank S 2,000.00
Payables S 2,000.00
Receivables S 1,500.00
Capital S 50,000.00
Drawings S 20,000.00
Long term loan S 67,760.00
Movement of the Inventory
Bought Sold
Jan 2020 | 20 Boxes | S60 each | May 16 Boxes | $100
2020 each
Apr 2020 | 20 Boxes | $68 each | Nov 2020 | 48 Boxes | $120
each
Oct 2020