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FAR Assignment 3 - Calculations

1. The general journal contains transactions debiting and crediting various accounts like cash, capital, retained earnings, etc. 2. The balance sheet shows the company has total assets of $48.35 million consisting mainly of cash, receivables, inventory and equipment with total liabilities and equity also of $48.35 million including capital, loans and retained earnings. 3. The income statement shows a net loss of $650,000 with total revenues of $23.2 million and total expenses of $23.85 million.

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Rumani Chakraborty
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31 views5 pages

FAR Assignment 3 - Calculations

1. The general journal contains transactions debiting and crediting various accounts like cash, capital, retained earnings, etc. 2. The balance sheet shows the company has total assets of $48.35 million consisting mainly of cash, receivables, inventory and equipment with total liabilities and equity also of $48.35 million including capital, loans and retained earnings. 3. The income statement shows a net loss of $650,000 with total revenues of $23.2 million and total expenses of $23.85 million.

Uploaded by

Rumani Chakraborty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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General Journal

General Journal
Transaction No. Description Debit ($) Credit ($)
1 Cash 34000000
Capital 34000000
2 Trademark 6000000
Capital 6000000
3 Prepaid license 3000000
Cash 3000000
4 Equipment 15000000
Cash 15000000
5 Retained Earnings 2000000
Cash 2000000
6 Inventory 6000000
Cash 6000000
7 Retained Earnings 400000
Cash 400000
8 Cash 6000000
Loan payables 6000000
9 Inventory 3000000
Trade payables 3000000
10 Retained Earnings 2000000
Cash 2000000
11 Retained Earnings 3300000
Cash 3300000
12 Retained Earnings 2000000
Cash 2000000
13 Cash 13400000
Trade receivables 9600000
Retained Earnings 23000000
15 Retained Earnings 300000
Cash 300000
16 Cash 200000
Retained Earnings 200000
17 Retained Earnings 2750000
Prepaid license fee 2750000
18 Retained Earnings 3400000
Equipment 3400000
19 Retained Earnings 8100000
Inventory 8100000
Ledger of all Accounts

Cash Capital
Transaction Amount Transaction Amount Transaction Amount Transaction Amount
1 34000000 3 3000000 1 34000000
8 6000000 4 15000000 2 6000000
13 13400000 5 2000000 Total 0 Total 40000000
16 200000 6 6000000 Balance 40000000
7 400000
10 2000000
11 3300000 Trademark
12 2000000 Transaction Amount Transaction Amount
15 300000 2 6000000
Total 53600000 Total 34000000 Total 6000000 Total 0
Balance 19600000 Balance 6000000

Retained Earnings Prepaid License


Transaction Amount Transaction Amount Transaction Amount Transaction Amount
5 2000000 13 23000000 3 3000000 17 2750000
7 400000 16 200000 Total 3000000 Total 2750000
10 2000000 Balance 250000
11 3300000
12 2000000
15 300000 Equipment
17 2750000 Transaction Amount Transaction Amount
18 3000000 4 15000000 18 3400000
19 8100000
Total 23850000 Total 23200000 Total 15000000 Total 3400000
Balance -650000 Balance 11600000

Trade Receivables Inventory


Transaction Amount Transaction Amount Transaction Amount Transaction Amount
13 9600000 6 6000000 18 3400000
Total 9600000 Total 0 9 3000000
Balance 9600000 Total 9000000 Total 3400000
Balance 5600000

Loan Payables
Transaction Amount Transaction Amount Trade Payables
8 6000000 Transaction Amount Transaction Amount
Total 0 Total 6000000 9 3000000
Balance 6000000 Total 0 Total 3000000
Balance 3000000
Profit & Loss Statement

Statement of Profit and Loss


For the year ending December 31, 2013
Amount Amount
Revenue
Revenue from sales 23000000
Interest on earnings 200000
Total Revenue 23200000
Expenses
2000000
400000
2000000
3300000
2000000
300000
2750000
3000000
8100000
Total Expenses 23850000
Net Loss 650000
Balance Sheet

Balance Sheet
As calculated on December 31, 2013
Liabilities and Equity Assets
Capital 40000000 Cash 19600000
Loan Payables 6000000 Trade Receivables 9600000
Trade Payables 3000000 Trademark 6000000
Retained Earnings -650000 Inventory 900000
Equipment 12000000
Prepaid License 250000
Total 48350000 Total 48350000
Cash Flow Statement

Statement of Cash Flows


For the year ending December 31, 2013
Cash flows from operating activities
Cash received from customers 13400000
Cash spent -16700000
Net cash flow from operating activities -3300000
Cash flow from investing activities
Cash paid for equipments and installation -17000000
Net cash used in investing activities -17000000
Cash flows from financing activities
Capital invested 34000000
Loan from bank 6000000
Interest income 200000
Interest paid to bank -300000
Net cash provided by financing activities 39900000
Net increase in cash 19600000
Beginning balance 0
Ending balance 19600000

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