Homework Assignment 2 Due by 500 pm on Monday Feb 05 as gdf

Homework Assignment 2 -Due by 5:00 pm on Monday Feb 05 as gdf file upload on Blackboard The following selected information has been extracted from two balance sheets dated Dec 31, 2012 and Dec 31, 2013 of ABC Company. Amount S December 31 2012 Amount $ December 31 2013 16,000 20,000 50,000 2,000 20,000 15,000 35,000 5,000 110,000 (25,000) 12,000 5,000 10,000 45,000 Cash Accounts Receivable Inventory Prepaid Rent Property Pilant and Equipment (at 107.000 Accounts Payable- Merchandize 20,000 Salaries Payable Unearned Revenue Retained Earnings 3,000 8,000 40,000 The following selected information has been extracted from the income statement for calendar year 2013 of ABC Company. Sales Revenue: $ 160,000 Rent Expense: $ 10,000 Cost of Goods Sold: $110,000 Salaries Expense:$ 14,000 Supplies Expense: $2,000 Depreciation Expense:$ 5,000 Based on the information provided above, provide your responses to the four questions listed below Supporting work must be shown. (a) What was the dollar amount of salaries paid by ABC Company during 2013? (b) What was the dollar amount of rent paid to landlords by ABC Company during 2013? (c) What was the dollar amount of cash paid to suppliers of merchandize inventory by ABC Company during 2013? (d ) What was the dollar amount of cash collected from customers by ABC Company during 2013?

Solution

a.

b.

d

	Particulars	Amount
	Salaries payable
	Opening balance	3000
Add	Salaries expense	14000
Less	Closing balance	5000
=	Salaries paid	12000