Questions from Financial Accounting

Q: Cheesecake Ltd is a small company selling ready-to-eat

Cheesecake Ltd is a small company selling ready-to-eat cakes. A list of balances extracted at 31 December Year 2 showed the following information: Further investigation revealed the following matters...

Q: (a) Prepare a spreadsheet containing a trial balance, adjustment

(a) Prepare a spreadsheet containing a trial balance, adjustment and resulting figures for income statement (profit and loss account) and statement of financial position (balance sheet) items. (b) Pre...

Q: Suitcases Ltd is a small company manufacturing holiday luggage. A list

Suitcases Ltd is a small company manufacturing holiday luggage. A list of balances extracted at 31 December Year 2 showed the following information: Further investigation revealed the following matter...

Q: During its first month of operations, a business made purchases and

During its first month of operations, a business made purchases and sales as shown in the table below: All sales were made at £4 each. Required: Calculate the profit for the month and t...

Q: A company has an inventory (stock of goods) consisting of

A company has an inventory (stock of goods) consisting of four different groups of items. The cost and net realizable value of each group is shown in the table below. Required: Calculate the amount t...

Q: At the end of Year 3, the Table Company has a

At the end of Year 3, the Table Company has a statement of financial position (balance sheet) comprising £4,000 receivables (debtors), £9,000 other assets and £13,000 ownership interest, consisting of...

Q: The Table Company continues trading during Year 4. The customers who

The Table Company continues trading during Year 4. The customers who were doubtful at the end of Year 3 respond to enquiries and pay the amounts due. No adjustment is made to the provision for doubtfu...

Q: Black Ltd commenced trading on 1 September Year 3 and is preparing

Black Ltd commenced trading on 1 September Year 3 and is preparing its accounts for the year ended 31 August Year 4. During its first year of trading, the company pays total telephone company invoices...

Q: Metals Ltd has begun to employ an office-cleaning company on

Metals Ltd has begun to employ an office-cleaning company on 1 January. The charge for 4 months’ worth of cleaning services is £1,200. The office-cleaning firm sends an invoice every 4 months, on 30 A...

Q: Peter (Television) Ltd gives a 2-year labour and

Peter (Television) Ltd gives a 2-year labour and parts warranty on all television sets that it sells. The company has the following revenue for its first 2 years of trading: Based on the level of faul...