PART AThe following are extracts from the financial records of ABC Ltd for the year ended31 August 2021.АBC LtdExtract from the Statement of financial statement as at 31 Auqust 202131 August 2021 31 August 2020- R- RBank50 00020 000Inventories - trade goods22 00030 000Trade recelvables77 0069 D00Trade payables44 00046 000Prepaid expenses:1 8001 200Accrued expenses: Interest1 0002 400Accrued expenses; other5 7004 400SARS - Income tax payable8 0003 000Dividends payable1 5002 700ABC LtdExtract from the Statement of profit or loss and other comprehensive Incomefor the year ended 31 Auqust 2021Sales592 000Cost of sales(301 000)Gross profit291 000Profit on sale of Equipment9 000Depreciation41 000Interest expense2 600Income tax expense15 200Profit for the year110 300Additional Information:1. The dividends declared for the current year is R2 400. Required:Prepare only the "Cash flows from operating activities" section of the statement of cash flowsfor ABC Ltd for the year ended 31 August 2021. Use the indirect method.Show all workings. Where applicable, round off calculations to the nearest Rand.PART BA trial balance is a list of all accounts in the general ledger and their balances at a specifiedpoint in time or at a given date. All the debit balances are added together to arrive at anamount for "Total debits" and all the credit balances are added together to arrive at the "Totalcredits". If the value of "Total Debits" is equal to the value of "Total credits" then this iscommonly referred to as the trial balance – "balances" or "the trial balance is in equilibrium".This would mean that the method of the double entry system has been implementedaccurately. However, it would be incorrect to believe that because the trial balance is inequilibrium there are no errors or omissions in that accounting system. There are errors andomissions that will not be identified by a trial balance that is in equilibrium.Required:Identify at least four types of errors and /or omissions that would NOT be identified by a trialbalance that is in equilibrium. Provide a brief description of each one or present examples oftransactions being recorded in a way that will still allow the trial balance to "balance".

Cash flow statement is prepared to present the flow of cash of an organization during the period.…

The following are extracts from the finandial records of ABC Ltd for the year ended 31 August 2021. ABC Ltd Extract from the Statement of financial statement as at 31 Auqust 2021 31 August 2021 31 August 2020 Bank 50 00 20 000 Inventories - trade goods 22 000 30 00 Trade recelvables 77 000 69 00 Trade payables 44 00 46 00 1 800 1 O00 5 700 8 00 1 500 Prepaid expenses: 1 200 Accrued expenses: Interest 2 400 Accrued expenses; other 4 400 SARS - Income tax payable 3 000 Dividends payable 2 700 ABC Ltd Extract from the Statement of proft or loss and other comprehensive Income for the year ended 31 Auqust 2021 Gales 592 000 Cost of sales (301 000) Gross profit Profit on sale of Equipment Depreciation 291 000 9 D00 41 000 Interest expense 2 600 15 200 110 300 Income tax expense Profit for the year Additional Information: 1. The dividends deciared for the current year is R2 400.

The following are extracts from the finandial records of ABC Ltd for the year ended 31 August 2021. ABC Ltd Extract from the Statement of financial statement as at 31 Auqust 2021 31 August 2021 31 August 2020 Bank 50 00 20 000 Inventories - trade goods 22 000 30 00 Trade recelvables 77 000 69 00 Trade payables 44 00 46 00 1 800 1 O00 5 700 8 00 1 500 Prepaid expenses: 1 200 Accrued expenses: Interest 2 400 Accrued expenses; other 4 400 SARS - Income tax payable 3 000 Dividends payable 2 700 ABC Ltd Extract from the Statement of proft or loss and other comprehensive Income for the year ended 31 Auqust 2021 Gales 592 000 Cost of sales (301 000) Gross profit Profit on sale of Equipment Depreciation 291 000 9 D00 41 000 Interest expense 2 600 15 200 110 300 Income tax expense Profit for the year Additional Information: 1. The dividends deciared for the current year is R2 400.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

See similar textbooks

Similar questions

The following are the summarised financial information of Ting Ltd for the two financial years ended 31 October 2020 are as follows:2019 2020£ million £ millionEquity 2,460.8 1,732.8 Non-current liabilities (Loans) 640.0 800.0 Current liabilities 654.4 1,020.5 Non-current assets 2,804.8 2,367.2 Current assets 950.4 962.4 Revenue 1,601.6 1,509.6 Total expenses 1,444.0 1,492.8 Required:(a) Calculate the following financial ratios for the two years: 2019 and 2020:(i) Current ratio (ii) Capital gearing ratio (iii) Profit margin (b) Comment briefly on the ratios of the company, computed in part (a) over the two year period from 2019 to 2020. (c) Provide any two (2) recommendations on how the company may improve these ratios in the futur.
CASE STUDY INFORMATION: The following information has been extracted from the accounting records of Lubners Limited on 31 December 2020. 2020 2019 Dr Cr Dr Cr Ordinary share capital 1728 000 1728 000 Non-current assets 3 462 964 2910206 inventories 665 856 584 640 Accounts payable Accounts receivable cash Retained earnings ( 1 Jan) Long term Loan 311 328 290 304 832 608 800 064 338 688 362 304 244 276 1 090 944 809 568 932 256 Other Current liabilities 1 057 824 Total Sales (80% credit sales) Cost of sales (80% credit purchases) 4 816 512 4 535 424 2 530 656 2 340 288 Interest income 7776 9 504 taxation 207 009 192 159 Selling and admin expenses 1 141 344 1 069 056 Interest expenses Other expenses 149 161 174 551 263 808 274 752 REQUIRED: QUESTION 1 (25) Compile the Statement of Comprehensive Income for the year ended 31 December 2020. (with 2019 comparative figures) QUESTION 2 (25) Compile the Statement of Financial Position as at 31 December 2020. (with 2019 comparative figures)
The accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…
Mvula Limited Statement of Financial Position as at: 28 February 2021 ASSETS Non-current assets Fixed/tangible assets Financial assets Fixed deposit Current assets Inventory Trade and other receivables Cash and cash equivalents Fixed deposit TOTAL ASSETS 4 320 350 EQUITY AND LIABILITIES Bay Holdings Limited: 30 June 2021.Required:Statement of financial position as at: 30 June 2021InformationBALANCE SHEET ACCOUNTSOrdinary share capital 2 648 000Retained income (1 Jul 2020) 490 000Shareholders for dividends 280 000Fixed deposit 60 000Mortgage bond 336 000Fixed/tangible assets (Carrying value) 4 021 000Debtors control 45 000Creditors…
The following information is provided to you by Ahmed LLC for the financial year ending 31st December 2020. As on 1st January 2020 As on 31st December 2020 Monetary Assets OMR 60,000 OMR 60,000 Monetary Liabilities OMR 120,000 OMR 120,000 Retail Price Index 250 350 Find out the gain/loss on holding monetary Assets a. OMR 24,000 b. OMR 60,000 C. OMR 50,000 d. OMR -24,000
X Company collected P12350 in interest during 2019 X showed P1,850 in interest on its December 31, 2021 statement of financial position and P5,300 on December 31, 2020 How much is the Interest Revenue to be reported on X's statement of comprehensive income in 2021?
On 1 July 2019, ABC Ltd took control of the assets and liabilities of PQR Ltd. At this date the statement of financial position of PQR Ltd was as follows:Carrying AmountFair ValueMachinery$40 000$57 000Fixtures & fittings60 00078 000Vehicles35 00045 000Current assets10 00022 000Current liabilities(16 000)(19 000)Total net assets$129 000Share capital (80 000 shares at $1.00 per share)80 000General reserve20 000Retained earnings29 000Total equity$129 000REQUIRED:Prepare the acquisition analysis in the records of ABC Ltd at 1 July 2019 in the following situations, assuming the costs of issuing the shares by ABC Ltd cost $2600:a. ABC Ltd issued 80 000 shares having a fair value of $2.50 per share in exchange for the net assets of PQR Ltdb. ABC Ltd acquired the shares of PQR Ltd. The agreement was that ABC Ltd would pay the shareholders of PQR Ltd one share in ABC Ltd for every two shares held in PQR Ltd plus $1 in cash for each share held in PQR Ltd. Shares…
The balance sheet account of Tata limited had the following balances on April 1, 2020, the beginning of a fiscal year Tata limited Balance SheetAccounts April 1,2020 Cash Accountsreceivatile Machandiseinventary Propaidrent Stareequipmet Acamulateddepreciation stare equipment Accountspayable Paid-in capital Retainedeamings Rs 1300 12600 38900 2000 10500 Rs2875 22500 15,000 24925
The following are extracts from the financial records of ABC Ltd for the year ended 31 August 2021. ABC Ltd Extract from the Statement of financial statement as at 31 August 2021 31 August 2021 31 August 2020 - R - R Bank 50 000 20 000 Inventories - trade goods 22 000 30 000 Trade receivables 77 000 69 000 Trade payables 44 000 46 000 Prepaid expenses: 1 800 1 200 Accrued expenses: interest 1 000 2 400 Accrued expenses; other 5 700 4 400 SARS - income tax payable 8 000 3 000 Dividends payable 1 500 2 700 ABC Ltd Extract from the Statement of profit or loss and other comprehensive income for the year ended 31 August 2021 Sales 592 000 Cost of sales (301 000) Gross profit Profit on sale of Equipment 291 000 9 000 41 000 Depreciation Interest expense 2 600 Income tax expense 15 200 Profit for the year 110 300 Additional information: 1. The dividends declared for the current year is R2 400. Required: Prepare only the "Cash flows from operating activities" section of the statement of cash…
Prepare the Statement of Comprehensive Income as at: 28 February 2021.Embassy TradersPre-adjustment Trial Balance as at: 28 February 2021Debit CreditBalance Sheet Accounts SectionCapital 1 651 100Drawings 132 900Land and buildings 1 254 800Vehicles at cost 925 000Equipment 662 000Accumulated depreciation on vehicles 528 000Accumulated depreciation on equipment 369 000Fixed deposit: Bob-bank (9% p.a.) 200 000Trading inventory 152 000Debtors control 174 800Provision for bad debts 10 000Bank 127 800Creditors control 184 800Mortgage loan: Bob-bank (18% p.a.) 330 000Nominal Accounts SectionSales 2 075 000Cost of sales 795 000Sales returns 15 000Salaries and wages 586 000Bad debts 18 000Stationary 30 000Rates and taxes 58 000Motor expenses 32 000Advertising 23 000Telephone 44 000Electricity and water 66 000Bank charges 8 000Insurance 5 000Interest on mortgage loan 26 000Interest on fixed deposit 15 000Rent income 171 6005 334 500 5 334 500Adjustments and additional information1.Trading…
These are some information for the balance sheet as of December 31, 2019 of MUST Corp.Accounts payable, consisting of purchase of goods, P278,000 and cost of goods received on consignment of P22,000,total P300,000Income tax due for 2019, (due and paid in the three (3) quarters of 2019, P87,500) 122,500Stock dividends payable 60,000Accrued expenses 7,800Reserve for contingencies 20,000Overdraft in Security Bank checking account 6,200Based on the above information, how much is the total liabilities to be reported in the balance sheet as of December 31,2019 of MUST Corp.?
On August 1, 2020, the business accounts of Peter and Senen appear below:Assets Peter SenenCash P11,000 P22,354Accounts receivable 84,536 217,890Inventories 100,035 240,102Land 603,000 428,267Buildings 200,345 384,789Other Assets 22,000 23,600Total P1,020,916 P1,317,002Liabilities and CapitalAccounts payable P178,940 P243,650Notes payable 200,000 345,000Peter, Capital 641,976Senen, Capital 728,352Total P1,020,916 P1,317,002Peter and Senen agreed to form a partnership contributing their respective assets and liabilitiessubject to the following adjustments:Accounts receivable of P20,000 and P35,000 are uncollectible in Peter and Senen’s respectivebooks.Inventories of P5,500 and P6,700 are worthless in Peter and Senen’s respective booksOther Assets of P2,200 and P3,600 in Peter and Senen’s books are written off.After five days Ethel was offered to join Peter and Senen and will contribute for a 20% interestin the firm. They also agreed to divide profits and losses in the ratio of 4:4:2…