QUESTION ONE (50 marks)Johnson has been trading of sports equipment and accessories for some years. The followinglist of balances has been extracted from his ledger as at March 31, 2023.$Rent, rates and insurance 15,000Electricity paid 6,000Postages and stationery 800Advertising 36,500Salaries and wages 35,000Bank interest expenses 3,500Cash in hand 100Stock at April 1, 2022 5,000Debtors 9,000Fixtures and fittings at cost 9,000Accumulated depreciation of Fixtures and Fittings at April 1, 2022 1,800Sales 150,000Creditors 9,680Purchases 100,000Office equipment at cost 5,000Accumulated depreciation of Office Equipment at April 1, 2022 500Share capital 52,9205-year bank loan at interest rate of 20% per annum 10,000The following additional information as at March 31, 2023 includes:1. Stock at March 31, 2023 was valued at $50,000.2. An electricity bill of $300 for January 2023 was received. This bill has not yet beensettled until May 2023.3. Rates was paid in advance for April to June 2023: $1,200.4. A customer has failed to make payment of $1,500 for a long time. It deemed as baddebts as at March 31, 2023.5. Depreciation of fixture and fittings: 20% per annum on straight line basis.6. Depreciation of office equipment: 10% per annum on straight line basis.2Required:(a) Prepare a Profit and Loss account for the year ended March 31, 2023 and aBalance Sheet as at that date. (30 marks)(b) Give comments on the above information given. (20 marks)

11.Question 11Use the balance sheet pictured to answer the following question.Balance SheetCurrent assetsAmount Cash$2,500 Accounts receivable$400 Inventory$400 Prepaid rent$10,000Long-term assets Equipment$3,900 Vehicle$25,000 Accumulated depreciation-$2,500 Furniture$2,200 Computers$2,600Total Assets$44,500If the accumulated depreciation for Eternal Summer’s mobile massage van increases to $3,000, what would the Total Assets balance be after this entry? 1 point$44,000$44,500$45,000

Suppose the following items are taken from the 2027 balance sheet of Yahoo! Inc. (All dollars are in millions.)Goodwill $4,100Common stock 6,330Equipment 1,790Accounts payable 130Patents 210Stock investments (long-term) 3,360Accounts receivable 1,140Prepaid rent 250Debt investments (short-term) 1,060Retained earnings 6,530Cash 2,440Notes payable (long-term) 710Unearned sales revenue 400Accumulated depreciation—equipment 250Prepare a classified balance sheet for Yahoo! Inc. as of December 31, 2027. (List Current Assets in order of liquidity.)

RONDO CORPORATIONBalance SheetsDecember 31  2017 2016Cash  $ 5,300  $ 3,700Accounts receivable  21,200 23,400Inventory  9,000 7,000Land  20,000 26,000Buildings 70,000 70,000Accumulated depreciation—buildings  -15,000 -10,000Total  $110,500  $120,100Accounts payable  $ 10,370  $ 31,100Common stock 75,000 69,000Retained earnings  25,130 20,000Total  $110,500  $120,100 Rondo’s 2017 income statement included net sales of $120,000, cost of goods sold of $70,000, and net income of $14,000.Compute the below mentioned financial ratios  for 2017.Current ratioa.3.42b.5.44c.2.43d.3.6Clear my choiceQuestion 3Not yet answeredMarked out of 3.00Flag questionQuestion textAccounts receivable turnovera.8.5b.4.36c.5.38d.4.99Clear my choiceQuestion 4Not yet answeredMarked out of 3.00Flag questionQuestion textReturn on common stockholders’ equitya.15.10%b.13.90%c.13.30d.14.80%Clear my choiceQuestion 5Not yet answeredMarked out of 3.00Flag questionQuestion textDebt to assets ratioa.8.50%b.9.40%c.7.90%d.10.10%Clear my choiceQuestion 6Not yet answeredMarked out of 3.00Flag questionQuestion textReturn on assets.a.11.80%b.13.10%c.12.10%d.11.50%Clear my choice

QUESTION TWOThe following trial balance has been extracted from the ledger of Herbert Howell, a sole trader,as at 31 May 2019, the end of his most recent financial year.Herbert HowellTrial Balance As At 31 May 2019Dr CrSh. Sh.Property at cost 90,000Equipment at cost 57,500Provision for depreciation (as at 1 June2018)Property 12,500Equipment 32,500Stock as at 1 June 2018 27,400Purchases 259,600Sales 405,000Discounts allowed 3,370Discounts received 4,420Wages and salaries 52,360Bad debts 1,720Loan interest 1,560Carriage out 5,310Other operating expenses 38,800Trade debtors 46,200Trade creditors 33,600Provision for bad debts 280Cash on hand 151Bank overdraft 14,500Drawings 28,93013% loan 12,000Capital, as at 1 June 2018 ______ 98,101612,901 612,901The following additional information as at 31 May 2019 is available:(a) Stock as at the close of business was valued at Sh.25,900.(b) Depreciation for the year ended 31 May 2019 has yet to be provided as follows:Property - 1% using the straight-line methodEquipment - 15% using the straight-line methodCUEA/ACD/EXM/SEPT - DEC 2022/GABA/BCOM Page 4ISO 9001:2015 Certified by the Kenya Bureau of Standards.(c) Wages and salaries are accrued by Sh.140.(d) Other operating expenses include certain expenses prepaid by Sh.500. Other expensesincluded under this heading are accrued by Sh.200.(e) The provision for bad debts is to be adjusted so that it is 0.5% of trade debtors as at 31 May2019.(f) Purchases include goods valued at Sh.1,040, which were withdrawn by Mr Howell for hisown personal use.Required:Prepare Mr. Howell’s trading and profit and loss account for the year ended 31 May 2019 and hisbalance sheet as at 31 May 2019.

Jo's Market makes a credit sale for $1,000 with terms of 2/10,n/30. The cost of the merchandise is $400. The required journal entry to record the sale and cost of the sale is:Multiple choice question.debit Accounts Payable $1,000; and credit Sales $1,000debit Accounts Receivable $1,000; credit Sales $1,000; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400debit Accounts Receivable $1,000 and credit Sales 1,000debit Accounts Receivable $600; credit Sales $600; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400