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POF Class Activity - 1

X-Corporation's pre-closing trial balance for the year ending December 31, 2019 showed assets of Rs. 545,000 including cash of Rs. 50,000, accounts receivable of Rs. 80,000, and inventory of Rs. 25,000. Liabilities included accounts payable of Rs. 16,000 and notes payable of Rs. 20,000. Equity included paid up capital of Rs. 90,000 and retained earnings of Rs. 40,000. Additional information provided year-end adjustments and financial statements were required to be prepared along with calculating financial ratios.

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43 views1 page

POF Class Activity - 1

X-Corporation's pre-closing trial balance for the year ending December 31, 2019 showed assets of Rs. 545,000 including cash of Rs. 50,000, accounts receivable of Rs. 80,000, and inventory of Rs. 25,000. Liabilities included accounts payable of Rs. 16,000 and notes payable of Rs. 20,000. Equity included paid up capital of Rs. 90,000 and retained earnings of Rs. 40,000. Additional information provided year-end adjustments and financial statements were required to be prepared along with calculating financial ratios.

Uploaded by

Muhammad Mansoor
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 DOCX, PDF, TXT or read online on Scribd
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CLASS ACTIVITY

Class Activity # 1
Important Note: Solve in your class register and then submit at blackboard.
Max. Marks = 5
Submission Date: August 3, 2022

X-Corporation is registered with an authorized capital Rs. 500,000


divided into 50,000 shares of Rs. 10 each. Pre-closing trial balance of
X-Corporation Ltd provides following financial information
at the end of year December 31st, 2019:
X - Corporation
Pre - Closing Trial Balance
For the Year Ended December 31st, 2019
DESCRIPTIONS DEBIT CREDIT
Cash 50,000
Accounts Receivable 80,000
Inventory (1-1-2019) 25,000
Prepaid Insurance 9,000
Office supplies 11,000
Office Equipment 250,000
Accumulated depreciation (O.E) 50,000
Accounts Payable 16,000
Notes Payable 20,000
Paid Up Capital / Shares Capital 90,000
Retain Earnings 40,000
Purchases 85,000
Transportation in 4,000
Sales Return 2,000
Sales Discount 1,000
Salaries Expenses 8,000
Rent Expenses 6,000
Advertising Expenses 4,000
Utility Expenses 10,000
Sales Revenue 325,000
Purchases Return 2,500
Purchases Discount 1,500
TOTAL 545,000 545,000

Addition Data at December 31st, 2019


(1) Office supplies used Rs. 2,000
(2) Allocated depreciation 20% at Office Equipment
(3) Accrued interest 5% on notes payable
(4) 40% corporate Tax
(5) Inventory at December 31st, 2019 worth Rs. 25000
(6) Declared 10% cash dividend on paid up capital
Required:
a) Prepare an income statement - statement of Retain Earnings and balance sheet
b) Answer all financial ratios - formulas' provided in the class.

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