Question

Section Short Ouestions (KNI, KN2: 5 marks BI: The following financial information belongs to sa 2019: Pelongs to Snow Company on December 31 Accounts Accons Cash Accounts receivable Supplies Equipment Snow, Capital Snow, Drawings Accounts payable $6,000,000 Revenues 1.200,000 Rent expense 1,200,000 Utilities expense 3,200,000 Advertising expense 2,000,000 Depreciation expense 400,000 -Salaries expense 4,400,000 $10,000,000 400,000 1,000,000 400,000 600,000 2,000,000 Required: Prepare the income statement, statement of owner's equity and balance of Snow Company on December 31, 2019. (KN2:3 marl

Answer 1

AIU Snow Company Income statement Particulars Revenues Less:- Rent expense utilities expense Advertising expense Salaries expense Depreciation expense Total Revenue kloss) Anit fand) 10,000,000 (400,000) (1,000,000) (400,000) 2,000,000) (600,000) 5,600,000 b. Owner's equity = Total assets liabilities Antu) Assets Amt (8) liabilities Accounts 4,400,oon payable Total cash 6,000,000 supplies 2007000 1,200,000 Accounts receivable Equipment - 3,200,000 4,400,000 Total 10,400,000 Add: - Supplies 1,200,000 11, 600,000 owner's equity = $10,400,000 $5,600,000 11,606, -4,400,000 4,400,oo = $7,200,000

Balance sheet of snow company as at Dec 31st, 2019. l Assets Ant - Liabilities Amt 6,000,ooo Capital less Drawings Add: - Net profit 2,000,000 (400,000) 5,600,000 cash Accounts receivable 1,200,000 Equipment 3,200,000 Accounts Payable 4,400,000 supplies 1,200,000 11,600,000 149 600,000