b. In-Charge Ltd is a multinational mining group which involved in different operations. You havebeen appointed as Auditor to express your opinion on the drafted financial statements for the yearended 31* May, 2019. The draft financial statements for the year ended 31 March 2019 show thefollowing:Income statement Extracts2019 (draft)GH¢millionCost of sales (i)Operating expenses (ii)(10.50)(15.00)Statement of Financial Position extractsFixed Assets (ii) & (iii)20.00Additional InformationYou inquired from management and the following were revealed to you.i.Cost of sales includes purchase of furniture costing GH¢ 500,000 during the yearii.Operating expenses included the payment for next year's electricity bills amountingGH¢ 300,000ii.Some of the fixed assets presented in the financial statement were acquired 15 years ago.RequiredAs an auditor of In-charge Ltd, consider the use of assertion level with regards to theinformation above to obtain audit evidence by paying attention to footnotes (i) to (iii).

Cost of sales includes the purchase of furniture cost GH 500,000 during the year. Correctness,…

Answered: b. In-Charge Ltd is a multinational…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1AFE

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Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
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SydMel Ltd commences operations on 1 July 2020. One year later, on 30 June 2021, the entity prepares its first statement of comprehensive income and its first statement of financial position. The statements are prepared before considering taxation. The following information is available. Statement of Profit or Loss and other Comprehensive Income For the year ended 30 June 2021 Gross Profit $500,000 Salaries expenses (220,000) Rent expense (53,000) Long service leave expenses (51,000) Depreciation expense - Plant (30,000) Bad debt expense (20,000) Accounting Profit Before Tax $126,000 The Statement of Financial Position (Extract/partial) As at 30 June 2021 Assets: Cash $153,000 Inventories 199,000 Account receivables (net) 179,000 Prepaid rent 51,000 Plant 150,000 Accumulated depreciation - plant (30,000) 702,000 Liabilities: Revenue received in advance…
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