Barakah CompanyBalance Sheet as at 31st December 2019Financed by:Fixed Assets (net after depreciation)2$$Paid-up:Share CapitalRetained EarningsReserves350,500200,500150,00050,000Land & Buildings600,000155,50075,000830,500EquipmentVehiclesFixtures & FittingsLong Term Liabilities25,000751,000Current Assets125,000Accounts Receivable 215,00010,000110,00020,0001,231,000InventoryCurrentOther payablesTrade creditorsLiabilities100,000245,500PrepaymentsCash at BankCash in HandAccrued expense30.000375,5001,231.000Additional Information:i)Work-in-Progress is one sixth of the total Inventory.Prepayments is related to rental of buildings.ii)ii)Bad Debts is 5% for the year.iv)Non Muslim ownership is at 20%.Required: Determine the zakat base and due for the company using:(a) Net Current Assets method; and(b) Net Invested Fund Method.

Zakat Zakat is custom which was followed by the Muslim Community as a charity which are paid to…

Answered: Additional Information: i)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following account balances were taken from the 2021 adjusted trial balance of the Bowler Corporation: sales revenue, $325,000; cost of goods sold, $168,000; salaries expense, $45,000; rent expense, $20,000; depreciationexpense, $30,000; and miscellaneous expense, $12,000. Prepare an income statement for 2021.
Entity A reported the following items on its balance sheet at the end of the current year. All accounts are listed. Cash $ 53,000 1,500 Accounts payable $ 15,000 Taxes payable Supplies Property, plant, & equip. 65,000 5,500 Long-term debt 48,000 Accounts receivable 40,000 Inventory 15,000 Common stock 60,000 Retained earnings ? What amount will Entity A report on its balance sheet for Total Assets? $108,000 $109,500 $68,500 $174,500
For which of the following sources of income would the entire amount be required to be included in a business’ gross income and taxed in the current year? a. Prepaid rent received by a cash-method company b. Life insurance proceedsc. State and local bond interest d. None of the above
please answer in good accounting form thankyou 6. At year-end, what amount should be reported as total noncurrent liabilities?
The income statement of Mid-South Logistics includes $12 million for amortized prior service cost. Does MidSouth Logistics prepare its financial statements according to U.S. GAAP or IFRS? Explain
The balance sheet of Mi-T-M reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%. What is Mi-T-M's net income for the year? A. $42,500 B. $85,000 C. $45,000 D. $4,250,000
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Please see the attachment for details: a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.b. What conclusions can be drawn from these data as to the company’s abilityto meet its currently maturing debts?
Assuming that a business total asset is 1/3 liabilities which includes an account payable of 50,000 how much is the total liabilities if the total equity balance is thrice as much as the accounts payable balance?
If total liabilities amount to P400,000 which 1⁄3 of the total assets, what is the amount of the residual interest of the business?
Last year, an investor in rental property had gross income of $160,000 with the following expenses: maintenance $22,000, insurance $5000, management$10,000, utilities $16,000, and debt service (interest) $19,000. Income taxes totaled $8000. What was the net operating income for the year?
XYZ Company reported the following information for the year: Net Sales $1,000,000, Cost of goods sold $500,000, Selling expenses $200,000, General and administrative expenses $100,000, and Interest expense $50,000. Calculate the company's Earnings Before Interest and Taxes (EBIT) and Net Income.
The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities. Stockholders equity Connon stock, $5 per value. Retained earnings Total stockholders equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net incone before taxes Income taxes (30%) Net income $24,000 230,000 370,000 9,000 633,000 860,000 $1,493,000 $ 290,000 320,000 610,000 $150,000. 733,000 883,000 $1,493,000 $ 2,290,000 1,220,000 1,070,000 580,000 490,000 32,000 458,000 137,400 $ 320,600

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