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MN Ltd had 50 units of commodity A on hand on 1 January 2021. The following purchases and sales were made during January: Opening Balance Purchases Sales Jan 1 50 units @ $200 Opening Inventory Plus: Purchase Less: Ending Inventory COGS Jan 3 500 units @ $280 Jan 200 units @ 12 $250 Jan 25 150 units @ $210 MN Ltd uses the LIFO assumption. Fill in the table below. Please fill in the blanks by entering numbers only. Do not include space, dollar signs, or commas. $ Jan 7 Jan 27 10000 221500 ✓ 44900 186600 420 units 300 units g. Recorded the following business expenses for the year: Paid office rent: $6,000. Paid wages: $54,000. The financial year is from 1 Feb 2020 to 31 Jan 2021. The following transactions also happened in the financial year: a. MN Ltd raised a share capital of $1,000,000. b. Paid off the beginning balance of accounts payable. c. Purchased office supplies for $8,400 on credit from OfficeMax. The amount was still outstanding at the end of the financial year. d. Collected cash from a customer on account, $13,700. e. Paid dividends of $130,000. f. All the inventory purchased was paid in cash. In addition, the company sold commodity A at $350 per unit consistently throughout the financial year. At the end of the financial year, $60,000 is still outstanding and will be paid by the customer in the following financial year.

MN Ltd had 50 units of commodity A on hand on 1 January 2021. The following purchases and sales were made during January: Opening Balance Purchases Sales Jan 1 50 units @ $200 Opening Inventory Plus: Purchase Less: Ending Inventory COGS Jan 3 500 units @ $280 Jan 200 units @ 12 $250 Jan 25 150 units @ $210 MN Ltd uses the LIFO assumption. Fill in the table below. Please fill in the blanks by entering numbers only. Do not include space, dollar signs, or commas. $ Jan 7 Jan 27 10000 221500 ✓ 44900 186600 420 units 300 units g. Recorded the following business expenses for the year: Paid office rent: $6,000. Paid wages: $54,000. The financial year is from 1 Feb 2020 to 31 Jan 2021. The following transactions also happened in the financial year: a. MN Ltd raised a share capital of $1,000,000. b. Paid off the beginning balance of accounts payable. c. Purchased office supplies for $8,400 on credit from OfficeMax. The amount was still outstanding at the end of the financial year. d. Collected cash from a customer on account, $13,700. e. Paid dividends of $130,000. f. All the inventory purchased was paid in cash. In addition, the company sold commodity A at $350 per unit consistently throughout the financial year. At the end of the financial year, $60,000 is still outstanding and will be paid by the customer in the following financial year.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 6MCQ: Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is...
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The opening balance on Feb 1, 2020: Bal. Bal. a. Bal. b. Bal. C. Cash + Bal. 37000 + d. Cash +1000000 Required: 1. Analyse the effects of the transactions on the accounting equation of MN Ltd using the format presented. 2. Prepare a balance sheet as of 31 Jan 2021. 1037000 -17800 1019200 1019200 +13700 Accounts Receivable 37000 X + + + 16200 + + + Accounts Receivable 16200 Please fill in the table below to show the effect of each transaction and update the balances. For items that are not affected by a transaction, please enter "blank" in the blank. Please do not enter any space, dollar signs, or commas. (For example, enter 1900 rather than $1,900). Round a number to the nearest integer. No decimals. (For example, 1900 rather than 1900.00). 16200 -13700 ASSETS X Inventory + 16200 + X 16200 ✓ + X + 10000 + + ASSETS Inventory 10000 10000 10000 10000 + x Office supplies |X X X + + blank + + + Office supplies +8400 8400 blank + X x X X + X Land + 210000 + Land 210000 210000 210000 LIABILITIES + x Accounts payable 210000 = X X = LIABILITIES = 17800 = Accounts payable 17800 -17800 17800 + 200000 +8400 0 ✓ 8400 X Share capital X + + + + + + Share capital + 200000 +1000000 Retained Earnings (as at 1 Feb 2020) 1200000 1200000 1200000 X 55400 X X + Retained Earnings (as at 1 Jan, 2020) Dividend + 55400 + 55400 + 55400 + 55400 X X X blank + X Sales revenue Dividend x x EQUITY blank + X X blank x COGS blank + + Sales revenue EQUITY blank X X |X Rent expense X X blank COGS blank |x x X X Wages expense X - blank Rent expense blank Wages expense blank |x X X X X X
Transcribed Image Text:The opening balance on Feb 1, 2020: Bal. Bal. a. Bal. b. Bal. C. Cash + Bal. 37000 + d. Cash +1000000 Required: 1. Analyse the effects of the transactions on the accounting equation of MN Ltd using the format presented. 2. Prepare a balance sheet as of 31 Jan 2021. 1037000 -17800 1019200 1019200 +13700 Accounts Receivable 37000 X + + + 16200 + + + Accounts Receivable 16200 Please fill in the table below to show the effect of each transaction and update the balances. For items that are not affected by a transaction, please enter "blank" in the blank. Please do not enter any space, dollar signs, or commas. (For example, enter 1900 rather than $1,900). Round a number to the nearest integer. No decimals. (For example, 1900 rather than 1900.00). 16200 -13700 ASSETS X Inventory + 16200 + X 16200 ✓ + X + 10000 + + ASSETS Inventory 10000 10000 10000 10000 + x Office supplies |X X X + + blank + + + Office supplies +8400 8400 blank + X x X X + X Land + 210000 + Land 210000 210000 210000 LIABILITIES + x Accounts payable 210000 = X X = LIABILITIES = 17800 = Accounts payable 17800 -17800 17800 + 200000 +8400 0 ✓ 8400 X Share capital X + + + + + + Share capital + 200000 +1000000 Retained Earnings (as at 1 Feb 2020) 1200000 1200000 1200000 X 55400 X X + Retained Earnings (as at 1 Jan, 2020) Dividend + 55400 + 55400 + 55400 + 55400 X X X blank + X Sales revenue Dividend x x EQUITY blank + X X blank x COGS blank + + Sales revenue EQUITY blank X X |X Rent expense X X blank COGS blank |x x X X Wages expense X - blank Rent expense blank Wages expense blank |x X X X X X
MN Ltd had 50 units of commodity A on hand on 1 January 2021. The following purchases and sales were made during January: Opening Balance Purchases Sales Jan 1 50 units @ $200 Opening Inventory Plus: Purchase Less: Ending Inventory COGS Jan 3 Jan 12 500 units @ $280 200 units @ $250 Jan 25 150 units @ $210 MN Ltd uses the LIFO assumption. Fill in the table below. Please fill in the blanks by entering numbers only. Do not include space, dollar signs, or commas. Jan 7 $ Jan 27 10000 221500 44900 420 units 186600 300 units The financial year is from 1 Feb 2020 to 31 Jan 2021. The following transactions also happened in the financial year: a. MN Ltd raised a share capital of $1,000,000. b. Paid off the beginning balance of accounts payable. c. Purchased office supplies for $8,400 on credit from OfficeMax. The amount was still outstanding at the end of the financial year. d. Collected cash from a customer on account, $13,700. e. Paid dividends of $130,000. f. All the inventory purchased was paid in cash. In addition, the company sold commodity A at $350 per unit consistently throughout the financial year. At the end of the financial year, $60,000 is still outstanding and will be paid by the customer in the following financial year. g. Recorded the following business expenses for the year: Paid office rent: $6,000. Paid wages: $54,000.
Transcribed Image Text:MN Ltd had 50 units of commodity A on hand on 1 January 2021. The following purchases and sales were made during January: Opening Balance Purchases Sales Jan 1 50 units @ $200 Opening Inventory Plus: Purchase Less: Ending Inventory COGS Jan 3 Jan 12 500 units @ $280 200 units @ $250 Jan 25 150 units @ $210 MN Ltd uses the LIFO assumption. Fill in the table below. Please fill in the blanks by entering numbers only. Do not include space, dollar signs, or commas. Jan 7 $ Jan 27 10000 221500 44900 420 units 186600 300 units The financial year is from 1 Feb 2020 to 31 Jan 2021. The following transactions also happened in the financial year: a. MN Ltd raised a share capital of $1,000,000. b. Paid off the beginning balance of accounts payable. c. Purchased office supplies for $8,400 on credit from OfficeMax. The amount was still outstanding at the end of the financial year. d. Collected cash from a customer on account, $13,700. e. Paid dividends of $130,000. f. All the inventory purchased was paid in cash. In addition, the company sold commodity A at $350 per unit consistently throughout the financial year. At the end of the financial year, $60,000 is still outstanding and will be paid by the customer in the following financial year. g. Recorded the following business expenses for the year: Paid office rent: $6,000. Paid wages: $54,000.
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