EBK FINANCIAL ACCOUNTING: THE IMPACT ON
10th Edition
ISBN: 9781337520225
Author: Porter
Publisher: YUZU
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Chapter 2, Problem 2.10MCP
To determine
Introduction: Ratio is a comparison of one variable with the other.
Multiple Step Income Statement.
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The financial statements of Dandy Distributors Ltd. are shown on the "Fcl. Stmts." page.
1
Based on Dandy's financial statements, calculate ratios for the year ended December 31, 2020. Assume all sales are on credit. Show your work.
2
From these ratios, analyze the financial performance of Dandy.
BPR Limited keeps books on Integrated Accounting System.
Following balances appear in the books as on April 1, 2018 :
Cr. ($)
Dr. ($)
40,950
38,675
52,325
Stores Control A/c
Work-in-Progress A/c
Finished Goods A/c
Bank A/c
Creditors A/c
Fixed Assets A/c
22,750
18,200
1,47,875
27,300
Debtors A/c
Share Capital A/c
Provision for Depreciation A/c
Provision for Doubtful Debts A/c
1,82,000
11,375
3,725
6,250
Factory Overheads Outstanding A/c
Pre-Paid Administration Overheads A/c
9,975
Profit & Loss A/c
72,800
3,17,100
3,17,100
The transactions for the year ended March 31, 2019 were as given below :
1,97,925 Production overheads Outstanding
11,375
2,27,500 Administration Overheads paid
2,50,250
4,550 Selling Overheads Incurred
Direct Wages
Indirect Wages
Purchase of Materials (on credit)
Materials issued to Production
Materials issued for Repairs
Goods Finished during the year
(at cost)
Credit Sales
Cost of Goods Sold
Production Overheads Absorbed
Production Overheads paid during
the
at the…
Analyzing Transactions Using the Financial Statement Effects Template
Following
are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template.
1. Shareholders contribute $15,000 cash to the business in exchange for common stock.
2. Employees earn $750 in wages that have not been paid at period-end.
3. Inventory of $4,500 is purchased on credit.
4. The inventory purchased in transaction 3 is sold for $6,750 on credit.
5. The company collected the $6,750 owed to it per transaction 4.
6. Equipment is purchased for $7,500 cash.
7. Depreciation of $1,500 is recorded on the equipment from transaction 6.
8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $1,200 of supplies are still available. No supplies were purchased during this period.
9. The company paid $15,000 cash toward the principal on a note payable; also, $750 cash is paid to cover this note's interest…
Chapter 2 Solutions
EBK FINANCIAL ACCOUNTING: THE IMPACT ON
Ch. 2 - Read each definition below and write the number of...Ch. 2 - Prob. 2.1ECh. 2 - The Operating Cycle Two Wheeler Cycle Shop buys...Ch. 2 - Classification of Financial Statement Items Regal...Ch. 2 - Current Ratio Baldwin Corp. reported the following...Ch. 2 - Classification of Assets and Liabilities Indicate...Ch. 2 - Selling Expenses and General and Administrative...Ch. 2 - Prob. 2.7ECh. 2 - Income Statement Ratio The income statement of...Ch. 2 - Statement of Retained Earnings Landon Corporation...
Ch. 2 - Components of the Statement of Cash Flows Identify...Ch. 2 - Prob. 2.11ECh. 2 - Prob. 2.12MCECh. 2 - Prob. 2.13MCECh. 2 - Prob. 2.14MCECh. 2 - Materiality Joseph Knapp, a newly hired accountant...Ch. 2 - Costs and Expenses The following costs are...Ch. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Working Capital and Current Ratio The balance...Ch. 2 - Single-Step Income Statement The following income...Ch. 2 - Multiple-Step Income Statement and Profit Margin...Ch. 2 - Statement of Cash Flows Colorado Corporation was...Ch. 2 - Basic Elements of Financial Reports Comparative...Ch. 2 - Prob. 2.10MCPCh. 2 - Prob. 2.11MCPCh. 2 - Prob. 2.12MCPCh. 2 - Prob. 2.1APCh. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Working Capital and Current Ratio The balance...Ch. 2 - Single-Step Income Statement The following income...Ch. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.9APCh. 2 - Comparability and Consistency in Income Statements...Ch. 2 - Prob. 2.12AMCPCh. 2 - Prob. 2.1DCCh. 2 - Prob. 2.2DCCh. 2 - Analysis of Cash Flow for a Small Business...Ch. 2 - Prob. 2.4DCCh. 2 - The Expenditure Approval Process Roberto is the...Ch. 2 - Prob. 2.6DC
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