Question

Apps YMS Login Excel Accounting Testxdsx Edit and reply Download Save to OneDrive Data Review View Help Formulas File Home Insert Gener abe 12 Bv Cv Av K13 A B С D E F G H 1 BASIC ACCOUNTING EXERCISE 2 3 1) summarize the journal entries required to record the following transactions. 4 2) prepare a draft balance sheet and income statement as at December 31. 5 6 7 January 1st 8 ABC Ltd is incorporated with share capital of 100 shares of $1 each. 9 All shares are issued and fully paid. 10 v 11 ABC Ltd is licensed to purchase and sell only one product: Widgets. 12 13 During the year 14 The cost of a Widget is $5. 15 ABC Ltd sells 100 Widgets at sale price $10 each. 16 ABC Ltd pays $1200 in legal fees for the period relating to July 18 - June 30th 17 18 At December 31 19 There are no unsold Widgets in stock. Sheet1 Sheet2 Sheet3 Workbook Statistics CAUTION: The Sender of this email is not... Х TAXI 002 WO

Answer 1

This solution comprises journal entries , draft income statement and draft balancesheet as on 31 december.
Date: Page: Dr LF Amount Amount 100 100 Solution Journal Entries Partialars Januorill Bunk AML To shore Application 4 Share Allotment-Alc Being Applicatin und All diment money Rece- ived) Share Application and DY 100 Allotment All To Share capital 100 500 | purchase all To Creditor A/C sovo Being widget purchase) Cash ALL Droo lovo To sales All Hournal py Being widget sold) ) Legal fees To cash Apc oid Being liqul gees puid) 1200 bhal 1200

Date: Page, 2 Amount "Draft Income statement for the year ended 31| Deep - o particulars Amount Particular To purchase 500 lovo To Gross profil 500 to legal fees 1200 By brosepoogit 500 Bydlet Loll Too By sales 11200 T1200 Gori brazy" Balance shut as on 31 December Liabilitia (Amount Asseto 12 Amount 100 Capital creditor 500 cash Lina Netrou Tooo 700