rate of recovery
Q: 7. During the year, a not-for-profit entity received $15,000 in dividends and $12,000 in interest…
A: Statement of activities- Report investment income (dividend/interest) and realized and unrealized…
Q: The current assets and current liabilities sections of the balance sheet of Allessandro Scarlatti…
A: Errors are the mistakes which occur in the financial statements which render the statements not…
Q: SHADOW BONE Company reported net income of P7,500,000 for the current year: The auditor raised…
A: Adjusted net income for the current year = Reported net income for the year + Debit adjustment of…
Q: After calculating the quick ratio for an entity and finding that the ratio’s value was 0.9, a…
A: Quick ratio of the business shows ratio of liquid assets with the current liabilities in the…
Q: A corporation has experienced losses greater than profits in the past three years since…
A: The shareholders' equity is calculated as sum of capital, investment, retained earnings and further…
Q: The draft chairman's report to go with the financial report states that the profits of a particular…
A: Audit Report:- It is a written report by the auditor where he or she states the true and fair view…
Q: The following appear on the deficiency statement: Estimated losses on realization of assets P25,000…
A: Liquidation means where the company decide to close out the operations , sell all the assets and…
Q: Determine the amount of overall materiality for the audit based on these preliminary amounts.
A: A Transaction can be material Due to its :— Mainly related party transactions eg, the company rent…
Q: Yankton Company began the year without an investment portfolio. During the year, it purchased…
A: Formula: Unrealized gain = Market value - purchase cost Deduction of purchase cost from market value…
Q: The following appear on the deficiency statement: Estimated losses on realization of assets 25,000…
A: Liquidation is a process where all the operations of the company are closed and all the assets are…
Q: You have been asked by your boss to determine the profitability of Insurance Company. To do so,…
A: Insurance is agreement between insurer and insured where insurer promises to compensate insured for…
Q: The directors of Woodbank Ltd are anxious to improve the profit to be reported for the accounting…
A: If The company want to improve its reported profit, either reduce its expenses or increase earnings…
Q: A corporation has $86,000 in total assets, $33,000 in total liabilities, and a $15,600 credit…
A: Total Assets = $86000 Total Liabilities = $ 33000 Retained earnings = $15600…
Q: Shep Company's records show the following information for the current year: Beginning of End of year…
A: Calculation of Increase in Shareholders’ equity during the year Beginning of Year End…
Q: Quartz Corporation had retained earnings balances of $480,000 and $400,000 at the beginning and…
A: Dividends for the Year = Opening Balance of Retained Earnings + Net Profit - Closing Balance of…
Q: A corporation has experienced losses greater than profits in the past three years since…
A: Retained earnings is reported in the shareholder's equity section of balance sheet. If there are…
Q: The values reflected in the Statement of financial Position are already at fair values, except for…
A: At the time of formation of partnership business, partners may invest cash as their capitals or they…
Q: The following incorrect income statement was prepared by the accountant of the Axel Corporation:…
A: Particulars Amount($) Revenue: Sales…
Q: XYZ Company went out of business and was sold to pay off as much debt as possible. It showed the…
A: There are three types of accounts shown on the balance of a firm; 1) Assets, 2) Liabilities, and 3)…
Q: The trial balance of Rollins Inc. included the following accounts as of December 31, 202 Credits 5,…
A: The income statement determines the net income of the business by subtracting the total expenses…
Q: An analysis of Suter Co.’s liabilities disclosed the following: Accounts payable after deducting…
A: The question is related to total current liabilities to be presented on the balance sheet. Current…
Q: Dos Enterprises has historically reported bad debt expense of 5% of sales in each quarter. The…
A: Bad debt expense for the fourth quarter = Bad debt expense for the entire year - Bad debt expense…
Q: 2. Dos Enterprises has historically reported bad debt expense of 5% of sales in each quarter. The…
A: The bad debt expense is estimated on the basis of sales revenue earned during the period. The…
Q: An entity reported the following information during the first year of operations: Pretax financial…
A: The income tax expense is computed based on financial income. The difference between the actual…
Q: The general ledger trial balance of A Corporation includes the following statement of financial…
A: 1. inventory is always a current assets even if it is reliable after 12 months period. 2.…
Q: V Co. has an agreement to pay its sales manager a bonus of 7.5% of the company's earnings due to an…
A: Income after tax = Income before bonus and tax - bonus - tax
Q: Please show your solution in good accounting form V Co. has an agreement to pay its sales manager a…
A: Given, The bonus is computed after deduction for both bonus and tax Income after tax = ₱6,890,500 ×…
Q: The following appear on the deficiency statement: Estimated losses on realization of assets…
A: Liquidation means where the company decide to close out the operations , sell all the assets and…
Q: Quartz Corporation had retained earnings balances of $480,000 and $400,000 at the beginning and…
A: Option (a) $30,000 is the correct answer
Q: The statement of financial position (balance sheet) of Omni-Pave Company reports assets of…
A:
Q: An entity disclosed the following information at year-end: Accounts payable, net of debit balances…
A: Current liabilities seem to be the corporation's commitments that are due to be met during a year…
Q: Which of the following properly describes one of the impacts on the financial statements when a…
A: Date Accounts Debit Credit Cash $38,000 Loan from bank $38,000
Q: An entity reported net income of P7,400,000 for the current year. The auditor raised questions about…
A: Adjusted net income is the net income which is adjusted from all the error that are made while…
Q: Blossom Company reported the following liabilities in the statement Accounts payable 1,000,000 Bonds…
A: The monetary liabilities represent the obligation of the company that has to be paid in terms of…
Q: This is the financial position of Hospital AMIH, Inc. regarding the repayment of its debts. These…
A: Profit During the years = Total Revenues - Total Expenses Cash Flow working given below
Q: An analysis of Suter Co’s liabilities disclosed the following; Accounts payable after deducting…
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…
Q: Cougar’s Accounting Services provides low-cost tax advice and preparation to those with financial…
A: Stockholders’ equity: It refers to the residual amount of assets that are available to the company’s…
Q: Following particulars have been obtained from the accounts of a company. i) Remuneration of Managing…
A: Net profit for calculation of managerial remuneration is calculated by adjusting all the items…
Q: The New England Company has a debt to a bank of $55,000. The company is currently being liquidated…
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: The turnover in a company was $3 million and its debtors were 5% of turnover. The company wishes to…
A: Allowance for doubtful debts is a contra asset. Allowance for doubtful debts is created on an…
Q: The draft statement of financial position of B at 31 March 20X8 is set out below. $ $ Non-current…
A: Formula:
Q: An examination of the statement of financial position items in the records of ABC Company operating…
A: As per PAS -29 " Financial Reporting in Hyperinflationary Economies " 1) the monetary items are not…
Q: Grant Company has had a record-breaking year in termsof growth in sales and profitability. However,…
A: Contingent liability: This is an uncertain obligation which might be incurred on a future date as a…
A Corporation's accounting statement of affairs shows a recovery percentage of 120%. The rate of recovery means that
Step by step
Solved in 2 steps
- At the end of 2022, Shah Corp. underestimated its annual bad debts expense by $50,000. What is the effect of this error, if any, on total assets and total stockholders’ equity on 12/31/22? Total assets and total stockholders’ equity are both overstated by $50,000. Total assets and total stockholders’ equity are both understated by $50,000. Total assets and total stockholders’ equity are both correctly stated.A corporation has experienced losses greater than profits in the past three years since incorporation. Which of the following statements is true? Question options: a Retained Earnings has a credit balance at the end of the third year. b Retained Earnings has a debit balance and is reported as an asset on the statement of financial position. c Retained Earnings has a debit balance and it appears as a reduction in the shareholders' equity on the statement of financial position. d Retained Earnings has a credit balance at the end of the third year and the corporation may choose how to report a deficit.The directors of Woodbank Ltd are anxious to improve the profit to be reported for the accounting period just ended. Which of the following would improve the profit reported?a) Increasing the rate of provision for doubtful debts from 10% to 12% of all balances over 60 days old.b) Creating a provision for possible warranty claims against the company.c) Changing from a reducing balance to a straight-line basis for computing depreciation on new non-current assets.d) Writing down the value of closing inventory on the basis of damage to the stock.
- Tremonti, Inc., is obligated to pay its creditors $7,900 during the year. a. What is the value of the shareholders’ equity if assets equal $9,100? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the value of the shareholders’ equity if assets equal $6,900? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)A company failed to record unrealized gains of $38 million on its debt investments classified as trading securities. Its tax rate is 25%. As a result of this error, total shareholders' equity would be:A corporation has experienced losses greater than profits in the past three years since incorporation. Which of the following statements is true? a. Retained Earnings has a credit balance at the end of the third year.b. Retained Earnings has a debit balance and is reported as an asset on the statement of financial position.c. Retained Earnings has a debit balance and it appears as a reduction in the shareholders' equity on the statement of financial position.d. Retained Earnings has a credit balance at the end of the third year and the corporation may choose how to report a deficit.
- A shareholder of a certain company is concerned that the company has recorded a reducedlevel of profits in 2020 compared to 2019. The Profit for the year has reduced from K272.4m toK5.9m. You have been requested by the concerned shareholder to prepare a detailed reportanalysing the financial performance and financial position of the company for the year ended 31 stDecember 2020From the given Financial statements. Calculate the following ratios for 2020 and 2019I. Gross Profit %ii. Operating profit %iii. Profit for the Year %iv. Current Ratiov. Acid Test Ratiovi. Cash Ratiovii. Average Debt collection Period in daysviii. Average Creditor Payment Period in daysix. Average Stock Holding Period in daysx. Total liabilities to Total Equity Ratioxi. Total liabilities to Total Asset Ratioxii. Return on Total Assetsxiii. Return on Equity8. An entity reported net income of P7,400,000 for the current year. The auditor raised questions about thefollowing amounts that had been included in net income:Equity in earnings of an associate – 25% interest 1,500,000Dividend received from the associates 400,000Unrealized loss on equity investment at FVOCI ( 550,000)Gain on early retirement of bonds payable 2,200,000Adjustment of profit of prior year for error in depreciation, net of tax effect ( 750,000)Loss from fire (1,400,000)Gain from change in fair value attributable to the credit risk of financialliability designated at FVPL 500,000 What amount should be reported as adjusted net income?a. 8,300,000 c. 9,500,000b. 7,800,000 d. 8,800,000DAD Company used the allowance method of accounting for uncollectible accounts. During2021, the entity had charged 750,000 to bad debt expense and wrote off accounts receivableof 780,000 as uncollectible. What was the decrease in working capital?*
- Shareholders of Hartley Corp are concerned that the company has recorded a reduced level of profits in 2020 compared to 2019. The Profit for the year has reduced from K272.4m to K5.9m. You have been requested by the concerned shareholder to prepare a detailed report analysing the financial performance Prepare a I) horizontal Analysis II) Vertical Analysis of the Statement of Financial position .Please help me to understand this by writing your solution in good accounting form, thank you! PROBLEM: The following data were taken from the statement of affairs of ROBINSONS Corp.: Assets pledged for fully secured liabilities (current fairvalue, $75,000) $90,000 Assets pledged for partially secured liabilities (currentfair value $52,000) $74,000 Free assets (current fair value, $40,000) $70,000 Unsecured liabilities with priority $7,000 Fully secured liabilities $30,000 Partially secured liabilities $60,000 Unsecured liabilities without priority $112,000 *The amount that will be paid to creditors with priority is:a. 7,000 b. 6,000 c. 7,500 d. 6,200 *The amount to be paid fully secured creditors is:a. 30,000 b. 32,000 c. 20,000 d. 35,000 *The amount to be paid to partially secured creditors is:a. 52,700 b. 57,200 c. 56,200 d. 57,000 *The amount to be paid to unsecured creditors:a. 78,200 b. 70,800 c. 72,000 d. 72,800Excerpts from the 2020 financial statements of Finley Ltd., a service company, follow: Service revenue $240,000 Accounts receivable 68,000 Allowance for bad debts 3,400 Total current assets 105,000 Total current liabilities 65,000 Net income 15,000 Dividends 5,000 Bad debt expense 3,400 Auditors from Price and Company reviewed the financial records of Finley and found that a credit sale of $10,000 (for services rendered), which was included in the service revenue amount above, should not have been recognized until January 20, 2021. The auditors also noted that a more reasonable estimate of future bad debts would be 10 percent of the accounts receivable balance. The auditors have informed Finley’s management that the audit opinion will be qualified if Finley does not adjust the financial statements accordingly. Question: Compute the effect of the auditors’ recommended adjustment on the 2020 service revenue, accounts receivable, allowance for bad debts, current ratio,…
