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Introduction: For calculating gain or loss on disposal, purchase or sale of assets, asset account is to be prepared. For calculating
To calculate: Cash received on account of sale of building.
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Introduction: For calculating gain or loss on disposal, purchase or sale of assets, asset account is to be prepared. For calculating depreciation expensed off during the year, accumulated depreciation account is to be prepared.
To calculate: Depreciation expense recorded on building during 2016.
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Introduction: For calculating gain or loss on disposal, purchase or sale of assets, asset account is to be prepared. For calculating depreciation expensed off during the year, accumulated depreciation account is to be prepared.
To calculate: Cost of new building purchased by A during 2016.
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Connect Access Card for Financial Accounting: Information and Decisions
- Prepare the Cash Flow Statement [Indirect Method] of Teresa's Delivery Services using the following: Net Income 500,000 Depreciation Expense 70,000 Gain on sale of property and equipment 10,000 Increase in trade and other receivables - net 10,000 Increase in trade and other payables 150,000 Amount of proceeds from sale of property and equipment 50,000 Paid loan from a bank 100,000 Cash, January 1, 2016 - 70,000arrow_forward15.4A The statements of financial position and additional information relating to Pennylane Ltd are given below. Prepare a statement of cash flows for Pennylane Ltd for the year ending 31 Decem- ber 2016 as required under IAS 7 using the indirect method. Pennylane Ltd Statements of Financial Position as at 31 December 2016 2015 £000 £000 Non-current assets Tangible assets Intangible assets Investments 400 325 230 180 25 530 630 Current assets Inventory Accounts receivable 90-day deposit 120 104 400 50 295 Cash in hand 10 580 403 1,210 Total assets Current liabilities Trade accounts payable Bank overdraft 933 122 108 188 185 Taxation 120 430 110 403 Non-current liabilities Long-term loan Deferred tax 100 80 180 610 600 60 60 463 470 Total liabilities Net assets Equity Share capital (£1 ordinary shares) Share premium Revaluation reserve 200 160 150 150 100 90 Retained profits 140 80 600 470 Additional information: (a) During the year interest of £75,000 was paid, and interest of £25,000…arrow_forwardPart AReview the existing literature to critically examine the relative information content of theincome statement and the statement of cash flows. Why do investors find both incomestatement and statement of cash flows useful? Part BDownload the annual financial reports of BHP Ltd, Santos Ltd, and Funtastic Ltd for the year2019, 2018 and 2017. Examine the consolidated Cash Flow Statements for each companiesacross three years. Answer the following questions about each of the three cash-flowstatements.1. For each companies [except mentioned otherwise as in c), g) and i) below], across threeyears on the Statement of Cash Flows discuss:a) What are the major sources of cash for each firm? What are the major uses ofcash for each firm?b) What was the trend in cash flow from (continuing) operations for each firm?c) Compare and contrast the cash flow from operations with the net profit after taxin income statement. Explain in detail the major reasons for the differencebetween these two figures.…arrow_forward
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