The following data were made available:December 31, 20PYDecember 31, 20CYTotal AssetsP1, 000,000P2, 000,000Total Liabilities600,0001,400,000Net Assets (Capital)400,000600,000For Single Proprietorship or Partnership:Additional Investments500,000Withdrawals600,000For Corporation:Retained Earnings100,000200,000Capital Stock300,000400,000Dividends declared and paid300,000Required:a) Determine the net income for 20CY for a Single Proprietorship or Partnership.b)Determine the net income for 20CY for a Corporation.

Net income Net income which is considered to be the important part in the financial statement of…

Answered: The following data were made available:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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REQUIRED Use the information provided below to prepare the Statement of Changes in Equity of Sooraya Enterprises/Partnership for the year ended 28 February 2022. INFORMATION Extract from the ledger of Sooraya Enterprises on 28 February 2022 R Capital: Soo 450 000 Capital: Raya 350 000 Current a/c: Soo (01 March 2021) Current a/c: Raya (01 March 2021) Drawings: Soo Drawings: Raya The following must be taken into account: 30 000 CR 25000 DR 220 000 260 000 1. On 28 February 2022 the Profit and Loss account reflected a net profit of R 880 000. 2. Partners are entitled to interest at 12% p.a. on their capital balances. Note: Soo increased her capital contribution by R180 000 on 01 September 2021. The capital increase has been recorded. 3. The partners are entitled to the following monthly salaries for the first 6 months of the financial year: Soo R15 000 Raya R11 000 From 01 September 2021, the partners will be entitled to annual salaries of R144 000 each. 4. Raya is entitled to a bonus…
The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…
he following is an extract from the trial balance of Tempo Ltd on 30 June 2022:£Land and buildings 114 000Equipment 210 000Investment (80 000 shares of £1 each in Rhythm Ltd at cost price) 650 000Inventory (30/6/2008 - £382 000) 418 000Trade receivables (30/6/2021 – £180 000) 206 000Cash and cash equivalents 92 000Share capital:Ordinary share capital including premium 450 000Preference share capital 200 000Retained earnings:Balance – beginning of year 160 000Retained profit for the year 40 00012% Long term loan 420 000Trade payables (30/6/2021 – £190 000) 210 000Tax payable 110 000Dividends payable 100 000Additional information:1. Issued share capital:- 400 000 ordinary shares of £1 each- 40 000 10% preference shares of £5 each.2. Gross profit for the year amounted to £1 344 000 and represents 40% of turnover for the year.3. All sales and all purchases are on credit.4. Income from investment for the year amounted to £24 000.5. The dividends payable represents the total amount of…
On January 1, 20X0, Station invested P2,000,000 cash in a joint venture for 50% interest. For the years ended December 31, 20X0, 20X1, and 20X2, the joint venture reported the following data: Year Net Income (Net Loss) Dividend Distribution 20X0 P1,000,000 P300,000 20X1 (6,000,000) - 20X2 7,000,000 500,000 Determine the following: Share in net loss or investment to be reported by Station for the year ended December 31, 20X1. The book value of Investment in Joint venture to be reported by Station as of December 31, 20X2.
NEED ASAP. Solve correctly and show your computations. The Corporation shareholders’ equity section of the Statement of Financial Position includes the following accounts and balances: Ordinary Share Capital, P100 par, 5,000 shares issued P500,000 Ordinary Share Premium 50,000 Retained earnings 750,000 Assuming a major shareholder donated 5,000 shares when the market value of the share capital was P140 per share, and was recorded as a debit to Treasury Shares and credit to Donated Capital. How much was the increase (decrease) in the total Additional Paid In Capital? Put a parenthesis if your answer is decrease.
BC Co. provided the following information on selected transactions during 2021:Proceeds from issuing preference share 300,000Proceeds from sale of equipment 400,000Purchase of land by issuing bonds 250,000Proceeds from issuing bonds 500,000Purchases of inventory 900,000Purchases of treasury shares 150,000Loans made to affiliated corporations 350,000Dividends paid to preference shareholders 100,000Collections from customers -- 2,500,000Operating expenses paid -----…
BC Co. provided the following information on selected transactions during 2021:Proceeds from issuing preference share 300,000Proceeds from sale of equipment 400,000Purchase of land by issuing bonds 250,000Proceeds from issuing bonds 500,000Purchases of inventory 900,000Purchases of treasury shares 150,000Loans made to affiliated corporations 350,000Dividends paid to preference shareholders 100,000Collections from customers -- 2,500,000Operating expenses paid -----…
BC Co. provided the following information on selected transactions during 2021:Proceeds from issuing preference share 300,000Proceeds from sale of equipment 400,000Purchase of land by issuing bonds 250,000Proceeds from issuing bonds 500,000Purchases of inventory 900,000Purchases of treasury shares 150,000Loans made to affiliated corporations 350,000Dividends paid to preference shareholders 100,000Collections from customers -- 2,500,000Operating expenses paid -----…
An entity began operations January 1, 2015 and reported the following net income or loss for five years of operations: 2015 1,500,000 loss 2016 1,300,000 loss 2017 1,200,000 loss 2018 4,500,000 income 2019 9,000,000 income On December 31, 2019, the capital accounts were: Preference share capital, P100 par, 12% participating and cumulative, 100,000 shares 10,000,000 Preference share capital P100 par, 10% nonparticipating, Noncumulative, 50,000 shares 5,000,000 Ordinary share capital, P10 par, 1,000,000 shares 10,000,000 The entity has never paid cash or share dividend. The capital accounts have not changed since the entity began operations. If the maximum amount available for cash dividends is declared on December 31, 2019, what amount of dividend is payable to 12% Preference Shareholders? 10% Preference Shareholders?
The following trial balance has been extracted from the books of Abraham as at 31st March 2023 UGX 000 UGX 000 Administrative expense 250 Distribution cost 295 Share capital (all ordinary shares of UGX 1 each 270 Share premium 80 Revaluation reserve 20 Dividend 27 Cash at bank and hand 3 Receivables 233 Interest paid 25 Dividend received 15 Interest received 1 Land and buildings at cost     (land 380, building 100) 480 Land and building acc. Dep 30 Plant and machinery 400 Plant and machinery acc. Dep 170 Retained earnings account (at April 2022 235 Purchases 1260 Sales 2165 Inventory at 1 April 2022 140 Trade payables 27 Bank loan 100 Total 3113 3113 Additional Information Inventory at 31st March 2023 was valued at a cost UGX 95000. Include in this…
The statement of financial position of the firm AA, BB and CC immediately before liquidation shows the following: Assets                                     640,000 Liabilities                                240,000 AA, Loan 64,000                                               AA, Capital 168,000                                     BB, Capital 120,000                                     CC, Capital                          48,000                                                 Total   640,000             AA, BB and CC share profits 5:3:2 respectively. Certain assets are sold for P440,000. Creditors are paid in full, partners are paid P140,000 and cash of P60,000 is withheld for contingencies. How much cash is to be distributed to AA?
The following information has been taken from the Accumulated profits ledger accounts of Indian Inc. a. Total net income since incorporation P3,200,000 b. Total cash dividends paid 150,000 c. Carrying value of the company’s equipment declared as     property divided 600,000 d. Proceeds from sale of donated stocks 150,500 e. Total value of stock dividends distributed 250,000 f.   Gain on treasury share transaction 375,000 g. Unamortized premium on bonds payable 413,200 h. Appropriated for plant expansion 700,000 i.   Loss on treasury share reissue 515,000 j.   Share premium in excess of par from issued shares 215,000 k. Share issuance expense 45,000 l.   Appropriated for remaining treasury shares at cost P50/share 1,000,000 Additional notes: The equipment declared as dividends had a recoverable value of P450,000 as of the date of declaration. The stock dividends distributed was based on a 10% share…

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