50.1K

Verified Solution

Link Copied!

Accounting

Mrenisactrons DEF Ltd. is a retaller following the perpetual inventory method. Assume that there are no credit transactions and all amounts are settled in cash. The following information for DEF Ld. for the month of December 2022 are brovidied below 1.-4. Journalise each of the transactions by following FIFO cont flow assumption. 5. Aging schedule of DEF LTD is given below, Calculate end of the year doubtful accounts and journalize bad debe expense. 6. The equipment has no salvage value and a useful life of 5 years. The equipment was purchased at January 1,2022 . There has been no adjustment to account for depreciation for the current year of 2022. DEF LTD applies straight-line method for the equipment. The building has a useful life of 50 years with no salvage value. Building was purchased at January 1, 2022. There has been no adjustment to account for depreciation for the current year of 2022. DEF LTD applies accelerating method for the building. 7. DEF LTD borrowed an \$100,000,10\%, 5-year financial debt at December 31,2022 with equal annual payments. Journalize use of financial debt (bank loan) occurred at December 31,2022. 8. On December 1, DEF LTD purchased a 25% equity in ABC Company for $75,000. At December 31, ABC reported total net income of $80,000 and declared and paid a $40,000 cash dividend in total. 9. Calculate provision for corporate tax expense by assuming 20% corporate tax rate. Required: a) Open ledger accounts and journalize the transactions. (72\%) b) Prepare adjusted trial balance and multiple-step income statement for the period ended December 31, 2021. ( 8%) c) Prepare a classified statement of financial position as of December 31, 2021. (5\%) Mrenisactrons DEF Ltd. is a retaller following the perpetual inventory method. Assume that there are no credit transactions and all amounts are settled in cash. The following information for DEF Ld. for the month of December 2022 are brovidied below 1.-4. Journalise each of the transactions by following FIFO cont flow assumption. 5. Aging schedule of DEF LTD is given below, Calculate end of the year doubtful accounts and journalize bad debe expense. 6. The equipment has no salvage value and a useful life of 5 years. The equipment was purchased at January 1,2022 . There has been no adjustment to account for depreciation for the current year of 2022. DEF LTD applies straight-line method for the equipment. The building has a useful life of 50 years with no salvage value. Building was purchased at January 1, 2022. There has been no adjustment to account for depreciation for the current year of 2022. DEF LTD applies accelerating method for the building. 7. DEF LTD borrowed an \$100,000,10\%, 5-year financial debt at December 31,2022 with equal annual payments. Journalize use of financial debt (bank loan) occurred at December 31,2022. 8. On December 1, DEF LTD purchased a 25% equity in ABC Company for $75,000. At December 31, ABC reported total net income of $80,000 and declared and paid a $40,000 cash dividend in total. 9. Calculate provision for corporate tax expense by assuming 20% corporate tax rate. Required: a) Open ledger accounts and journalize the transactions. (72\%) b) Prepare adjusted trial balance and multiple-step income statement for the period ended December 31, 2021. ( 8%) c) Prepare a classified statement of financial position as of December 31, 2021. (5\%)

Answer & Explanation Solved by verified expert

See Answer