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    TD2&CORRECTION

    Uploaded by

    Yassmine D
    The document provides financial statements for IKRA CONSULTING for the month of September. It includes an income statement showing revenue and expenses, a retained earnings statement showing the change in retained earnings, and a balance sheet showing assets, liabilities, and equity. The document asks to identify and correct any errors in these statements.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    TD2&CORRECTION

    Uploaded by

    Yassmine D
    29 views17 pages
    The document provides financial statements for IKRA CONSULTING for the month of September. It includes an income statement showing revenue and expenses, a retained earnings statement showing the change in retained earnings, and a balance sheet showing assets, liabilities, and equity. The document asks to identify and correct any errors in these statements.

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    © © All Rights Reserved

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    The document provides financial statements for IKRA CONSULTING for the month of September. It includes an income statement showing revenue and expenses, a retained earnings statement showing the change in retained earnings, and a balance sheet showing assets, liabilities, and equity. The document asks to identify and correct any errors in these statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views17 pages

    TD2&CORRECTION

    Uploaded by

    Yassmine D
    The document provides financial statements for IKRA CONSULTING for the month of September. It includes an income statement showing revenue and expenses, a retained earnings statement showing the change in retained earnings, and a balance sheet showing assets, liabilities, and equity. The document asks to identify and correct any errors in these statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 17

    Exercises & Correction

    Problem 2.
    Company IKRA CONSULTING gives you the following information (analysis of the fundamental accounting
    equation):

    97
    Problem (continue).
    Additional information concerning the retained earnings column:
    (a) Service revenue
    (b) Advertising expense
    (c ) Salaries and wages expense
    (d) Rent expense
    (e ) Utilities expense

    Required work
    Identify and correct the errors in the following financial statements:
    Q1/ Income statement
    Q2/ Retained earnings statement
    Q3/ Balance sheet

    98
    Q1/ Income statement

    IKRA CONSULTING
    Income statement for
    September N

    (net in euros)
    Services revenue 6300
    Operating expenses
    Rent expense 900
    Advertising expense 200
    Salaries and wages expense 1500
    Utilities expense 170
    Total operating expense 2970
    Net income (profit) 4830
    99
    Q2/ Retained earnings statement

    IKRA CONSULTING
    Retained Earnings
    Statement for
    September N
    (net in euros)
    Retained earnings, September 1 900
    Add: Net income 8330
    Less: Dividends -400
    Retained earnings, September 30 6630

    100
    Q3/ Balance sheet
    IKRA CONSULTING
    Balance sheet for the end of September N
    (net in euros)
    Assets
    Non-current assets
    Equipment 8100
    Current assets
    Supplies 300
    Accounts receivables 5200
    Cash 15900
    Total assets 59800
    Owner's equity
    Share capital 13000
    Retained earnings 8630
    Liabilities
    Notes payable 100000
    Accounts payables 2170
    Total equity and liabilities 29800
    101
    Q1/ Income statement

    IKRA CONSULTING
    Income statement for September
    N

    (net in euros)
    Services revenue 7300
    Operating expenses
    Rent expense 900
    Advertising expense 200
    Salaries and wages expense 1700
    Utilities expense
    170
    Total operating expense 2970
    Net income (profit) 4330

    102
    Q2/ Retained earnings statement

    IKRA CONSULTING
    Retained Earnings Statement for September N

    (net in euros)
    Retained earnings, September 1 700
    Add: Net income 4330
    Less: Dividends -400
    Retained earnings, September 30 4630

    103
    Q3/ Balance sheet
    IKRA CONSULTING
    Balance sheet for the end of September N

    (net in euros)
    Assets
    Non-current assets

    Equipment 8100
    Current assets
    Supplies 600
    Accounts receivables 5200
    Cash 15900
    Total assets 29800
    Owner's equity
    Share capital 13000
    Retained earnings 4630
    Liabilities
    Notes payable 10000
    Accounts payables 2170
    Total equity and liabilities 29800

    104
    Problem 2.V2
    Company IKRA CONSULTING gives you the following information (analysis of the fundamental accounting
    equation):

    105
    Problem2 V2 (continue).
    Additional information concerning the retained earnings column:
    (a) Service revenue
    (b) Advertising expense
    (c ) Salaries and wages expense
    (d) Rent expense
    (e ) Utilities expense

    Required work
    Identify and correct the errors in the following financial statements:
    Q1/ Income statement
    Q2/ Retained earnings statement
    Q3/ Balance sheet

    106
    Q1/ Income statement

    IKRA CONSULTING
    Income statement for September N

    (net in euros)
    Services revenue 5300
    Operating expenses
    Rent expense 900
    Advertising expense 200
    Salaries and wages expense 1700
    Utilities expense 170
    Total operating expense 2970
    Net income (profit) 2230

    107
    Q2/ Retained earnings statement

    IKRA CONSULTING
    Retained Earnings Statement for September N

    (net in euros)
    Retained earnings, September 1 700
    Add: Net income 4330
    Less: Dividends -400
    Retained earnings, September 30 4630

    108
    Q3/ Balance sheet
    IKRA CONSULTING
    Balance sheet for the end of September N
    (net in euros)
    Assets
    Non-current assets
    Equipment 9100
    Current assets
    Supplies 600
    Accounts receivables 5200
    Cash 26600
    Total assets 49500
    Owner's equity
    Share capital 23000
    Retained earnings 4230
    Liabilities
    Notes payable 10000
    Accounts payables 2370
    Total equity and liabilities 49500 109
    Q1/ Income statement

    IKRA CONSULTING

    Income statement for September N

    (net in euros)
    Services revenue 7300
    Operating expenses
    Rent expense 900
    Advertising expense 200

    Salaries and wages expense


    1700
    Utilities expense
    270
    Total operating expense 3070

    Net income (profit) 4230

    110
    Q2/ Retained earnings statement

    IKRA CONSULTING
    Retained Earnings Statement for September N

    (net in euros)
    Retained earnings, September 1 400
    Add: Net income 4230
    Less: Dividends -400
    Retained earnings, September 30 4230

    111
    Q3/ Balance sheet

    IKRA CONSULTING
    Balance sheet for the end of September N

    (net in euros)
    Assets
    Non-current assets
    Equipment 8100
    Current assets
    Supplies 600
    Accounts receivables 5200
    Cash 25600
    Total assets 39500
    Owner's equity
    Share capital 23000
    Retained earnings 4230
    Liabilities
    Notes payable 10000
    Accounts payables 2270
    Total equity and liabilities 39500

    112

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