Q) The following balances are taken from the books of company ABC at the end of its first year trading on 31 December 2017. Intangible Assets 22,150 Retained Earnings 20,000 Heating and Electricity machines 900 Cash 2200 Loans (due in 2020) 1500 Payables 1300 Furniture and fittings 10,000 Trucks and vehicles 8,000 Buildings and equipment 30,000 Paid in capital 45,450 Dividends declared 10,000 Goodwill 5000 A) Prepare a balance sheet as at 31 December 2017. B) Based on the balance sheet created, discuss within your team the financial state of the company and answer.
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Q) The following balances are taken from the books of company ABC at the end of its first year trading on 31 December 2017.
Intangible Assets 22,150
Heating and Electricity machines 900
Cash 2200
Loans (due in 2020) 1500
Payables 1300
Furniture and fittings 10,000
Trucks and vehicles 8,000
Buildings and equipment 30,000
Paid in capital 45,450
Dividends declared 10,000
A) Prepare a
B) Based on the balance sheet created, discuss within your team the financial state of the company and answer.
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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. 670,000The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).
- Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.FINANCIAL STATEMENTS The Davidson Corporation's balance sheet and income statement are provided here. Davidson Corporation: Balance Sheet as of December 31, 2016 (Millions of Dollars) Davidson Corporation: Income Statement for Year Ending December 31, 2016 (Millions of Dollare) Sales 6.250 Operating costs excluding depreciation and amortization 5.230 EBITDA 1.000 Depreciation amortization 2.20 EBIT 800 Interest 180 EBT 620 Taxes (40%) 248 Net income 372 Common dividends paid 146 Earnings per share 3,72 a. Construct the statement of stockholders equity for December 31, 2016. No common stock was issued during 2016. b. How much money has been reinvested in the firm over the years? c. At the present time, how large a check could be written without it bouncing? d. How much money must be paid to current creditors within the next year?
- Hannis Investment Limited had the following balances as at the end of September, 2022 Balances Debit (Dr) “000” Credit (Cr) Plant and Machinery 160,000 Land 674,000 Depreciation on Plant and Machinery 16,000 Purchases(Adjusted) 400,000 Closing stock 150,000 Wages 120,000 Sales (Net) 1,000,000 Salaries 80,000 Bank overdraft 200,000 10% debentures (issued on 1st April, 2016) 100,000 Equity share capital 200,000 Preference share capital@6% 1000 100,000 1,600,000 1,600,000 Required: With reference to the above table , explain the type of Financial reports you would produce at the end of the year stating the rationale for each.however As a Chief Executive Officer of your organization, if you issued a cheque to the customer who supplied you goods for sale and the bank manager declines to cash it,…Kamikazi Investment Limited had the following balances as at the end of September, 2022 Balances Debit (Dr) “000” Credit (Cr) Plant and Machinery 160,000 Land 674,000 Depreciation on Plant and Machinery 16,000 Purchases(Adjusted) 400,000 Closing stock 150,000 Wages 120,000 Sales (Net) 1,000,000 Salaries 80,000 Bank overdraft 200,000 10% debentures (issued on 1st April, 2016) 100,000 Equity share capital 200,000 Preference share capital@6% 1000 100,000 1,600,000 1,600,000 Required: With reference to the above table and using the knowledge you have acquired in this module, explain the type of Financial reports you would produce at the end of the year stating the rationale for each.Imagine you are the financial accountant of Happiness Ltd. You have the following final balances for the different accounts on 31st December 2021 (the accounting-year end): Value (£) Buildings 300,000 Transportation element 148,000 Accumulated depreciation (buildings) at 01/01/2021 52,500 Accumulated depreciation (transportation element) at 01/01/2021 36,800 Salary expense 16,500 Share premium 7,200 Capital 20,000 Retained earnings at 31/12/2020 97,900 Long term debt 190,300 Cash 60,000 Trade receivables 62,500 Inventory at 31/12/2020 40,000 Purchases 10,000 Sales 200,000 Allowance for trade receivables 2,500 Accrued Expenses 19,500 Trade payables 10,300 Required: a)Prepare the Trial Balance corresponding to the above information. b)Considering the following additional information, prepare the Income Statement for Happiness Ltd. on 31/12/2021. Additional…
- The following balances were taken from a sole trader’s accounts for the year ended 30 June 2021:Current liabilities £20,000Profit on sale of motor vehicle £4,000Profit for the year £19,000 Capital account at 1 July 2017 £92,000Non-current liabilities £10,000Non-current assets £80,000 No capital was introduced into the business or withdrawn during the year ended 30June 2021.Current assets at 30 June 2021 amounted to:a) £50,000b) £65,000c) £42,000d) £61,000ASAP!! The following income statement and selected balance sheet account data are available for Satelllite Transmissions, Inc,. at December 31: SATELLITE TRANSMISSIONS, INC Income Statement For the Year Ended December 31,2012 Net Income 205,000 Gain on sales of marketable securities 4000 Depreciation expense 26000 Loss on sale of plant assets 12500 Gain on sale of securities 6500 Selected account balances: End of Year Beg.…Cara Company provided the following information: 1/1/2013 12/31/2013Current assets 240,000 ?Property, plant and equipment 1,600,000 1,700,000Current liabilities ? 130,000Noncurrent liabilities 580,000 ?All assets and liabilities of the entity are reported at year-end. Working capitalof P92,000 remained unchanged from 2012 to 2013. Net income in 2013 wasP64,000. No dividends were declared during 2013 and there were no other changesin owner’s equity. What amount should be reported as noncurrent liabilities onDecember 31, 2013?a. 340,000b. 432,000c. 580,000d. 616,000
