Question

nts - 6 marks (suggested July 31 $29,000 $ 800 $20,000 accounts actions as QUESTION #9 - Analyzing transactio minutes) Flowers" Wholesale inc. indicate ndicate the following: June 30 $55,000 $ 940 $26,000 Data from the records of Flowers' Wh Accounts Receivable Prepaid Insurance Accounts Payable (for other operating expen ers on account totaled $520,000 "account to suppliers for other operatin Mom customers on account totaled -600. Payments on account to Additional information indicates the following: All sales are on account. Cash collections from Payments for insurance totaled $2,600. Paymen expenses totaled $132,000. e begin Follow inning and ending balances of the acco e following amounts for the month of Required: Use T-accounts to analyze the changes in the noted above. Use your analysis to determine a) Sales Revenue b) Insurance Expense c) Other operating expenses

Answer 1

Account Receivables A/c
Dr. ($)			Cr. ($)
Date	Particulars	Amount	Date	Particulars	Amount
XX	Opening Balance	55,000	XX	Collection from customers	5,20,000
XX	Sales during the year (Balancing figure)	4,94,000	XX	Closing Balance	29,000
	Total	5,49,000		Total	5,49,000
Prepaid Insurance a/c
Dr. ($)			Cr. ($)
Date	Particulars	Amount	Date	Particulars	Amount
XX	Opening Balance	940	XX	Insurance expense	2,740
XX	Payment of insurance during the year	2,600	XX	Closing Balance	800
	Total	3,540		Total	3,540
Accounts Payable a/c
Dr. ($)			Cr. ($)
Date	Particulars	Amount	Date	Particulars	Amount
XX	Payment to suppliers	1,32,000	XX	Opening Balance	26,000
XX	Closing Balance	20,000	XX	Other operating expenses incurred during the year	1,26,000
	Total	1,52,000		Total	1,52,000
Hence the following amounts as highlighted in blue in the above T-accounts have been determined :
Particulars	Amount ($)
a) Sales Revenue	4,94,000
b) Insurance Expense	2,740
c) Other Operating Expenses	1,26,000