Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. q1: an inexperienced accountant prepared this stat

Q1: An inexperienced accountant prepared this statement of profit or loss for Peninsula Pty Ltd,...

70.2K

Verified Solution

Question

Accounting

image Q1: An inexperienced accountant prepared this statement of profit or loss for Peninsula Pty Ltd, a merchandising firm that has been in business for a number of years. As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. Net sales consist of sales $496000, less delivery expense on inventory sold $16500, and sales returns and allowances $17500. 2. Other revenues consist of discount received $8700 and rent revenue $4500. 3. Selling expenses consist of salespersons' salaries $44000; depreciation on office equipment $4400; advertising $5500; and sales commissions $3300. The commissions represent commissions paid. At 30 June, $2700 of commissions have been earned by salespersons but have not been paid. 4. Administrative expenses consist of office salaries $20350; dividends $2750; electricity $6600; interest expense $1100; and rent expense $13200, which includes prepayments totalling $3300 for rent for the first quarter of 2023. 5. Financial expenses consist of bank charges $550, and discount allowed $4400. 6. The company tax rate is 30%. Required Prepareafullyclassifiedstatementofprofitorloss

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students