tements for the year ended 30 June 2013: Financial year 2013 2012 $82,000 Trade Receivables $99,000 Sales Revenue $1,019,000 $825,000 11 July 2012, the Wondai Ltd Group gained control over Stansbury Ltd. At the date of quisition, the Stansbury Ltd single entity accounts included the following balance: 1 July 2012 Trade Receivables $85,000 equired: Based on the available information, the reconciliation of profit (before tax) to cash

tements for the year ended 30 June 2013: Financial year 2013 2012 $82,000 Trade Receivables $99,000 Sales Revenue $1,019,000 $825,000 11 July 2012, the Wondai Ltd Group gained control over Stansbury Ltd. At the date of quisition, the Stansbury Ltd single entity accounts included the following balance: 1 July 2012 Trade Receivables $85,000 equired: Based on the available information, the reconciliation of profit (before tax) to cash

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.8AMCP

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P Company acquired the assets and assumed the liabilities of S Company on January 1, 2013, for $505,370 when S Company’s balance sheet was as follows: S COMPANYBalance SheetJanuary 1, 2013 Cash $94,842 Receivables 55,029 Inventory 111,504 Land 169,221 Plant and equipment (net) 474,560 Total $905,156 Accounts payable $44,244 Bonds payable, 9%, due 12/31/2018, Par 482,000 Common stock, $2 par value 122,000 Retained earnings 256,912 Total $905,156 Fair values of S Company’s assets and liabilities were equal to their book values except for the following: 1. Inventory has a fair value of $124,958. 2. Land has a fair value of $200,847. 3. The bonds pay interest semiannually on June 30 and December 31. The current yield rate on bonds of similar risk is 6%. Prepare the journal entry on P Company’s books to record the acquisition of the assets and assumption of the liabilities of S Company. (Round present value factor…
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DEF Company has several subsidiaries that are included in its consolidated financial statements. In its December 31, year 1 trial balance. DEF had the following intercompany balances before eliminations: In its December 31, year 1 consolidated balance sheet, what amount should DEF report as intercompany receivables? Dr Cr Current Receivable Due from Main Co. 32,000 Noncurrent Receivable from Main Co. 114,000 Cash Advance to Kong Corp. 6,000 Cash advance from King Com 15,000 Intercompany Payable to King Co. 101,000
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The following information pertains to KPMJ Ltd and covers questions 11 – 21: KPMJ Ltd is a company incorporated in 2017 and has a 28 February financial year- end. The company’s accountant presented the following information to you as the accounting officer of the company: KPMJ LTD EXTRACT OF BALANCES AS AT 28 FEBRUARY 2022: Retained earnings (1 March 2021) Share capital: Ordinary shares (1 March 2021) Inventory (1 March 2021) Trade receivables control Petty cash R 200,900 600,900 34,700 244,200 5,900 Loan: PWA Bank SARS (income tax) (Dr) Land and buildings at revaluation Equipment at cost Accumulated depreciation: Equipment Revaluation surplus (1 March 2021) Income received in advance Allowance for credit losses Bank (Dr) Trade payables control Auditor's remuneration Sales Carriage on sales Settlement discount received Allowance for settlement discount granted Purchases Salaries and wages Carriage on purchases Directors’ remuneration Settlement discount granted Stationery Telephone…
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The accounts below were taken from the unadjusted trial balance of May Company at December 31, 2021: Cash P137,000 Trade Accounts Receivable 129,000 Allowance for Uncollectible Accounts 6,000 Withholding Tax Payable 4,000 Notes Receivable, collectible Dec. 31, 2023 150,000 Trade Accounts Payable 87,000 Merchandise Inventory, Dec. 31, 2021 136,000 Bonds Payable 250,000 Share Dividends Distributable 15,000 Value Added Tax (VAT) Payable 28,000 The Bonds payable issued in 2021 will mature in five equal annual installments beginning June 1, 2022. How much total non-current liabilities should be reported on the statement of financial position as of December 31, 2021?
The accounts below were taken from the unadjusted trial balance of May Company at December 31, 2021: Cash P137,000 Trade Accounts Receivable 129,000 Allowance for Uncollectible Accounts 6,000 Withholding Tax Payable 4,000 Notes Receivable, collectible Dec. 31, 2023 150,000 Trade Accounts Payable 87,000 Merchandise Inventory, Dec. 31, 2021 136,000 Bonds Payable 250,000 Share Dividends Distributable 15,000 Value Added Tax (VAT) Payable 28,000 The Bonds payable issued in 2021 will mature in five equal annual installments beginning June 1, 2022. How much total current assets should be reported in the statement of financial position at December 31, 2021?