Financial information related to the proprietorship of plexiglassinterior for oc
ID: 2447253 • Letter: F
Question
Financial information related to the proprietorship of plexiglassinterior for october and november 2010is as follows:
october 31,2010 november 30, 2010
acc.payable $46,200 49,800
acc.receivable 102,000 117,375
capital ? ?
cash 180,000 306,000
supplies 9,000 7,500
a- Prepare balance sheets for plexiglass interiors as of october 31and as of november 30, 2010.
b- Determine the amount of net income for november, assuming thatthe owner made no additional investment or withdrawals during themont.
c- determine the amount of net income for november, assuming thatthe owner made no addtional investments but withdrew $37,500 duringthe month.
PLEASE CAN YOU EXPLAIN STEP BY STEP, A'M REALLY STRUGGLING WITHTHIS!!!!!
Explanation / Answer
(a) Balance sheets Balance sheet for plexiglass interiorfor october 31,2010 Liabilities Amount Assets Amount Capital 244,800 Fixed Assest 0 Accounts Payable 46,200 Current Assets: Accounts Receivable 102,000 Stock 9,000 Cash 180,000 Total 291,000 291,000 Capital = Assets - Liabilities Balance sheet for plexiglass interiorfor november30,2010 Liabilities Amount Assets Amount Capital 381,075 Fixed Assest 0 Accounts Payable 49,800 Current Assets: Accounts Receivable 117,375 Stock 7,500 Cash 306,000 Total 430,875 430,875 Capital = Assets - Liabilities (b) Amount of November income As there is no other information related to incone so we assumethat the income is included in the capital. (c ) Amount of November income Capital 381,075 Lessdrawings 37,500 343,575 As there is no other information related to incone so we assumethat the income is included in the capital. What ever may the drawings there is noeffect on the profit amount. Note: If you have any information related tofinding the income let we know so we can help you.
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