Financial lists exercises

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Financial lists exercises
Exercise number 1
Required :
Preparing financial statements
Account closures
Solution method:

Second: Closing the Revenue and Expenditure Account:
After the revenue and expenses account has been closed in the profit and loss account (income summary), the balance of the income summary account will appear as a credit of $16,916,650, which is the value of the profits that were extracted when preparing the income statement as follows:
Profit and loss account (income summary)
him to him
2083.350 h / m. Rent 20300 h / revenue
500 h/salaries and wages
300 h/internet expenses
250 h/electricity expenses
250 h / m. Advertising
16,916,650 credit balance
20300
20300
Third: Preparing a list of changes in equity:
List of changes in equity as of 31/12/2015
statement amount
10,000 capital at the beginning of the period
(500) (-) Personal withdrawals
16,916,650 (+) net income (profit)
26,416,650 net equity (capital at the end of the period)
Fourth: Closing the Income Summary Account and Personal Withdrawals Account:
After that, the income summary account and the personal withdrawals account (temporary accounts) are closed with one of the permanent property rights accounts (capital or the current account of the owner of the company or in the retained earnings account). Here we will close them in the current account of the owner of the company to maintain the stability of the capital account in The beginning of the period as it is in the articles of incorporation of the company as follows:
1 Closing the income summary account in the current account of the owner of the company
Debtor creditor statement
16,916,650
From h/profits and losses (income summary)
16916.650 to H/ my neighbor, owner of the company

Closing the income summary account in the current account of the owner of the company
2 Closing the personal withdrawals account in the current account of the owner of the company
Debtor creditor statement
500
From H / Neighbor, owner of the company
500 to h/personal withdrawals

Closing the personal withdrawals account in the current account of the owner of the company
Fifth: Preparing the statement of financial position:
Statement of financial position on 31/12/2015
Total amount Partial amount statement

assets

Assets
14,700 Fund
7650 bank
22350
Total current assets

Fixed assets
5000 furniture
5000
Total fixed assets

Other debit balances
416,650 rent expense paid in advance
300 revenue owed
716,650
Total other debit balances
28,066,650
Total assets

Obligations and property rights

short term liabilities
1,500 creditors
1500
Total short-term liabilities

Other credit balances
150 due electricity bills
150
Total other credit balances

Property rights
10,000 capital
16416,650 The owner of the facility
26,416,650
net equity
28,066,650
The sum of liabilities and equity

 


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