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a)
Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash and result of these transactions is reported as ending balance of cash at the end of reported period.
Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system.
Rules of Debit and Credit:
Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
- Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.
To Journalize: The transactions to deduce the missing amounts.
b)
To Prepare: The statement of retained earnings for Company B.
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Chapter 21 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
- QUESTION ONE The following financial information relates to Sporty Limited. Statement of Financial Position as at 31 December 2018 and 2019 Ordinary share capital Retained earnings Property, plant and equipment Investments Debentures 12.5% Inventory Trade debtors Prepaid expenses Trade creditors Bank overdraft SARS (income tax) Shareholders for dividends Profit before interest and tax Depreciation on equipment Dividends received on investments Interest on dividends Income tax Page 2 of 6 2019 R 400 000 55 000 230 000 165 000 20 000 124 000 37 000 Statement of comprehensive income for the year 31 December 2019 Note no. 1 for the year ended 31 December 2018 and 2019 Property, plant and equipment Land and building at cost Equipment at carrying value 25 000 21 000 5 000 30 000 Statement of changes in equity for the year ended 31 December 2019 Dividends on ordinary shares 2019 (R) 200 000 30 000 230 000 R R 295 000 5 000 195 000 110 000 2018 60 000 120 000 28 500 1 500 42 500 25 000 R 60…arrow_forwardChapter 11 Comprehensive Problem – CP11-11 The following note appeared on the balance sheet of Sabre Rigging Limited: As of December 31, 2019, dividends on the cumulative preferred stock were in arrears for three years to the extent of $15 per stock or $15,000 in total. Required: 1.Does the amount of the arrears appears as a liability on the December31, 2019 balance sheet? Explain your answer. Why might the dividends be in arrears? The comptroller of Sabre Rigging projects net income for the2020 fiscal year of $35,000. When the company last paid dividends, the directors allocated 50 per cent of current year’s net income for dividends. If dividends on shares of preferred stock are resumed at the end of 2020 and the established policy of 50 per cent is continued, how much will be available for dividends to the common stockholders if the profit projection is realized?arrow_forwardpo tained es ed 0 e Chapter 33 -Statement of Changes in Equity | 33-15 MCP 33-9 - Changes in equity The Dec. 31, 2021 balance sheet of Jasmine Corp. showed shareholders' equity of P448,700. Transactions during 2021 which affected the shareholders' equity were: (1) an adjustment to Retained Earnings for an overstatement of depreciation in 2020 P10,000; (2) gain on the sale of treasury shares, P9,000; (3) declared dividends of P60,000 of which P40,000 were paid during the year; and (4) net income after tax of P75,500. The share capital balance of P300,000 remain unchanged during the year. The retained earnings balance on Jan. 1, 2020 was a. P134,200 b. P132,300 c. P123,200 d. P114,200 MCP 33-10- Changes in equity An entity was incorporated on June 1, 2021 with an authorizedarrow_forward
- Suppose that you have been provided with the following financial information about a company. 2019 352 2020 323 Common Shareholders' Equity (S/E) Cash dividends Common share repurchases 0 Common share issues 20 45 60 50 13 In addition to this information, you have also been informed that the company has net financial obligations (NFO) of 25 in 2019 and 35 in 2020, and net financial expenses of 3 in 2019 and 4 in 2020. Based on this information, what is the company's free cash flow (FCF) for 2020? 1.-30 2.-24 3.-39 4.-1arrow_forwardProblem 18-5 (Algo) Shareholders' equity transactions; statement of shareholders' equity; financial statement effects [LO18-6, 18-7, 18-8] Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2024-2026. At December 31, 2023, the corporation's accounts included: Common stock, 112 million shares at $1 par Paid-in capital-excess of par Retained earnings ($ in thousands) $ 112,000 672,000 910,000 a. November 1, 2024, the board of directors declared a cash dividend of $0.70 per share on its common shares, payable to shareholders of record November 15, to be paid December 1. b. On March 1, 2025, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The bonds had a fair value of $2.8 million, but were purchased two years previously for $2.4 million. Because they were intended to be held to maturity, the bonds had not been…arrow_forward← → C #becausesneaker.... HW CH 17 v2.cengagenow.com/ilrn/take... Custom Order Appendix: Income statement and earnings per share for discontinued operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense Loss from discontinued operations Weighted average number of shares outstanding Applicable tax rate *Net of any tax effect. Apex Inc. Partial Income Statement For the Year Ended December 31 ☆ Check My Work * I Apex Inc. Partial Income Statement For the Year Ended December 31 Earnings per common share: a. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense. $670,000 $120,000* 60,000 40% b. Determine the earnings per common share for Apex Inc., including per-share amounts for unusual items. Enter answers in dollars and cents, rounding to the nearest whole cent. Du + : ?arrow_forward
- Problem 1 (Adapted)The shareholders’ equity of Yelan Company showed the following account balances on December 31, 2018:Share capital, P100 5,000,000Share Premium 1,000,000Retained earnings 2,000,000Revaluation surplus 800,000 Compute the book value per share on December 31, 2018.arrow_forwardPLEASE PROVIDE COMPUTATION! 19. The balance in the share premium account after the quasi-reorganization on July 1, 2018, should bea. P750,000 c. P500,000b. P2,000,000 d. P0arrow_forwardD Question 6 Jaffers Corporation has a current ratio (defined as current assets dividend by current liabilities) of 1.7 as of the end of 2020. Which of the following transaction would increase the current ratio? O Jaffers receives payment of an outstanding account receivable. O Jaffers pays an outstanding long-term liability Jaffers purchases more inventory on account. Jaffers issues long-term debt and receives cash Question 7 Quantum, LLC. Reported net income of $8,840,984 and a net cash inflow from operations of $9,820,659 for 2021. Quantum, LLC. used the straight-line depreciation method to determine depreciation expense for 2021 of $1,729,100. If Quantum, LLC. had used the double-declining balance depreciation method, depreciation expense for 2021 would have been $2.950,000. Required: What would cash flow from operations have been if Quantum, LLC. had used the double- declining balance method? Enter your answer in dollar with no $ or commasarrow_forward
- #26 The adjusted net income of ABC Company for the years 2021 and 2020 amounted to P 2,796,354.00 and P 2,091,096.00, respectively. Information regarding EPS computation are as follows: Ordinary shares outstanding, January 2020 – 36,000 Rights issue during 2020 – 18,000 Date of exercise of rights – June 30, 2021 Fair value of share right – on – P 420 Subscription price – P 60 If ABC company intends to present a financial statement for the comparative periods 2020 and 2021, how much is the basic earnings per share for the year ended 2020? (round-off answer to the nearest centavo)arrow_forwardINSTRUCTIONS Section 1- Financial Analysis FSA Company's Summary Financial Data (In billions, except per share data) 2020 2019 2018 2017 2016 Net Sales 30.20 29.70 29.10 29.40 28.50 Gross Profit 16.10 17.30 17.20 16.80 16.60 Operating Income Net Income 12.50 12.90 12.10 12.70 12.80 11.90 0.90 12.80 11.60 11.80 1.70 11.80 Restructuring charge (after tax) Net Income before restructuring Op Income before restructuring 1.30 1.00 0.50 L10 12.80 12.90 1390 12.90 12.20 13.80 13.90 13.00 13.20 17.80 20.90 14.40 13 50 5.00 Total Assets 21.00 19.00 18.30 Total Liabilities 15.00 13.80 12.60 Long Term Debt Shareholder Equity Treasury Stock at cost 6.60 6.00 6.00 5.20 5.40 6.50 5.70 5.50 5.20 4.00 3.50 6. 10 5.30 5.20 29 32 28.54 28 29 28.04 Basic Earnings per share. Cash Dividends per share 29.00 14.50 14.20 14.00 13.60 13.00 53.00 Closing Stock Price Shares Outstatiding (billions) 75.00 63.00 64.00 69.00 0.40 0.41 0.42 0,41 0 42 Using the above information, kindly prepare the following: a)…arrow_forwardting Standards Sec-1 with B Shivakumar for Sem II 2021 C021-3/ Topic 3/ Quiz 2 Redemption of preference shares by a company is classified under investing activities of its cash flow statement Select one: of O True O False stion Next page pagearrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
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