Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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The following investment account was taken from the general ledger of One Dream Investment Company:
Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027)
Date
PR
Debit
Credit
Balance
January2, 2022
VR
VR P1,812,300
P1,812,300
June 30, 2022
CRJ
60,000
1,752,300
Dec. 31, 2022
CRJ
60,000
1,692,300
Dec. 31, 2022
195,000
1,497,300
In the course of your examination, you obtained the following information:
Interest checks were received on June 30 and December 31 and were credited to the investment account.
One dream sold P200,000 of its investment on December 31, 2022 for P195,000.
Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual)
One Dream included this investment in a portfolio that is held to collect and for sale.
The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively.
How much is the gain or…
5. The following list of balances obtained from Agro Trading as at 31 July 2020. PARTICULARS RMCash in hand 100Cash at bank 9,000Account receivable 12,840Inventory as at 1 June 2019 26,500Motor vehicles 14,000Plant and machinery 50,000Long term investment 10,000Freehold premises 147,500Account payable 16,50010% Mortgage on freehold premises 34,000Capital 219,840Purchases 128,900Wages and salaries 70,300Rates and taxes 1,000Interest on mortgage 1,700General expenses 2,000Carriage outwards 21,000Insurance premium 3,000Drawings 7,400Carriage inwards 600Advertising expenses 14,000Sales 250,000Sales returns 1,000Purchases returns 500Discount received 600Discount allowed 800Allowance for doubtful debt 200Inventory at 31 July 2020 was RM30,000.Required: i. Statement of Profit and Loss and Others Comprehensive Income for the year ended 31 July 2020.ii. Statement of Financial Position as 31 July 2020
Problem 1
Rajon and Rondo are partners with the following capital transactions during 2018:
Rondo
Rajon
P135,000 cr
Balance Jan 1
P140,000 cr
February 28
P40,000 dr
March 31
P60,000 cr
April 30
P80,000 cr
P50,000 dr.
P70,000 cr
June 30
August 31
September 30
P20,000 cr
October 31
P20,000 dr
The income summary account has a credit balance of P510,000
Required:
Prepare a statement of profit distribution for each of the following independent profit-sharing agreements:
a. In the average capital ratio
b. Interest on average capital at 9%, salaries of 60,000 and P100,000 to Rajon and Rondo, respectively, a bonus to
Rajon of 25% of Net income after interest, salaries and bonus, and the balance equally.
c. Interest at 10% on the amount by which the ending capital balance exceeds the beginning balance and the
balance equally.
d. Salaries of P80,000 and P120,000 to Rajon and Rondo, respectively, a bonus to Rajon of 25% of net income after
salaries but before bonus, and the balance equally.
Chapter C Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Prob. 15DQCh. C - Prob. 16DQCh. C - Prob. 17DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Prob. 13QSCh. C - Prob. 14QSCh. C - Prob. 15QSCh. C - Prob. 16QSCh. C - Prob. 17QSCh. C - Prob. 1ECh. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Prob. 8ECh. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Prob. 13ECh. C - Prob. 14ECh. C - Prob. 15ECh. C - Prob. 16ECh. C - Prob. 2PSACh. C - Prob. 6PSACh. C - Prob. 2PSBCh. C - Prob. 3PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 4BTNCh. C - Prob. 9BTN
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