Question

Mulan Manila Ltd uses accrual basis accounting to prepare its financial statement. The following information can...

Mulan Manila Ltd uses accrual basis accounting to prepare its financial statement. The following information can be found from the general ledger accounts.

Mulan Manila Ltd

30-Jun

2021

2020

Account receivable

$23,200

$27,800

Inventory

$5,220

$4,830

Prepaid rent

$1,250

$1,750

Account payables

$25,100

$28,300

Salaries payables

$2,800

$3,000

Sales revenue

$33,750

Cost of Goods sold

$17,500

Expenses (including 23000 depreciation)

$125,000

Required

  1. Use the T-account to calculate the amount of cash collected from customers during 2021.
  2. Use the T-account to calculate the amount of cash paid to suppliers and employees during 2021.

(a)

Cash collected from customers

Account receivable

(b)

Cash paid to suppliers and employees

Account payables

Inventory
Business   Accounting   
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Answer #1

  Answer:

(a) Cash Collected From customer = $38350.

(b) Cash Paid to Suppliers = $21090.

  

Account Receivable Account

Date

Particulars

Amount

Date

Particulars

Amount

July 01 , 2020

Balance b/d

$27800

June 30,2021

Cash account

$38350

Sales Revenue

$33750

(Bal. Figure)

June 30,2021

Balance c/d

$23200

$61550

$61550

Account Payable Account

Date

Particulars

Amount

Date

Particulars

Amount

June 30,2021

Cash account

$21090

July 01,2020

Balance b/d

$28300

(Bal. Figure)

Purchase

$17890

June 30,2021

Balance c/d

$25100

$46190

$46190

*Cost of goods sold = Beginning Inventory + Purchase – Ending Inventory

$17500 = $4830 + Purchase - $5220

$17500 = Purchase - $390

Purchase = $17500 + $390 = $17890.

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