Cobalt Industries Ltd. is a company engaged in manufacturing and sale of electronic components. Thetrial balance of Cobalt Industries Ltd as at 31st December 2024 is as follows:Debit£'000Credit£'000Sales revenue400Purchases300Inventory (as of 31st Jan. 2024)20Admin & Distribution expenses140Loan interest expense6Loan50Payables20Receivables30Share capital150Dividends12Retained profits (as of 1st Jan. 2024)50Bank balance27Machinery150Share premium (as of 1st Jan. 2024)11Office furniture30Computer5Motor vehicle15708708Additional information:•The company owes £3,000 for unpaid electricity bill at the year end, which has not been included inthe trial balance. This expense was not included in the admin & distribution expenses.The company paid £12,000 for insurance, which cover a 12-month period starting from 1stNovember 2024. This figure was included in the admin & distribution expenses.• Taxation to be accrued is £22,000.•The closing inventory is £70,000.Required:a) Using the information on the trial balance, you are required to produce the profit/loss statement,statement of changes in equity, and the statement of financial position.

Detailed Explanation of the Financial Statements: Profit and Loss StatementThe profit and loss…

Answered: Cobalt Industries Ltd. is a company…

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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The following is an extract from the statements of financial position of Carp plc as at 31 December 2020 and 2021: Plant and equipment (carrying amount) 2020 £m 268 O a. (£87m) O b. (£84m) O c. (£76m) O d. (£65m) 2021 £m 343 During the year to 31 December 2021 the following transactions took place: 1. Interest received was £llm 2. Depreciation of plant and equipment during the year was £23m There were no disposals of non-current assets during the year. What was the appropriate figure for net cash from investing activities for reporting in the statement of cashflows for the year ending 31 December 2021?
On 1 November 2020, Bermuda Ltd acquired all the assets and liabilities (other than cash) of Triangle Ltd. The details on the assets and liabilities of Triangle Ltd were as follows: Carrying Amount Fair Value Cash 30,000 30,000 Equipment 120,000 140,000 Accounts Receivable 25,000 25,000 Furniture 35,000 25,000 Accounts Payable 10,000 10,000 Income tax Payable 19,000 19,000 Annual Leave Payable 14,000 14,000 In addition to the above items, Triangle Ltd had an internally generated brand name with a fair value of $75,000 that was not recognized in its accounts. The consideration Bermuda Ltd paid to Triangle Ltd was $80,000 cash and 20,000 shares. The fair value of each Bermuda Ltd share is $10. Bermuda Ltd paid $20,000 in acquisition-related costs. The tax rate is 30%. Required: Conduct an acquisition analysis for Bermuda
On 1 November 2020, Bermuda Ltd acquired all the assets and liabilities (other than cash) of Triangle Ltd. The details on the assets and liabilities of Triangle Ltd were as follows: Carrying Amount Fair Value Cash 30,000 30,000 Equipment 120,000 140,000 Accounts Receivable 25,000 25,000 Furniture 35,000 25,000 Accounts Payable 10,000 10,000 Income tax Payable 19,000 19,000 Annual Leave Payable 14,000 14,000 In addition to the above items Triangle Ltd had an internally generated brand name with a fair value of $75,000 that was not recognised in its accounts. The consideration Bermuda Ltd paid to Triangle Ltd was $80,000 cash and 20,000 shares. The fair value of each Bermuda Ltd share is $10. Bermuda Ltd paid $20,000 in acquisition related costs. Tax rate is 30%.
Presented below are the financial balances for the BonGiovi Company and the TerensCompany as of December 31, 2017, immediately before BonGiovi acquired Terens. Also included are the fair values for Terens Company's net assets at that date (thousands of US$). BonGiovi BV31.12.2017 Terens BV 31.12.2017 Terens FV 31.12.2017Cash 870 240 240Receivables 660 600 600Inventory 1,230 420 580Land 1,800 260 250Buildings (Net) 1,800…
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Accounts Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Penske $ (845,000) 300,750 160,000 Not given 80,000 (614,000) 438,000 920,000 634,000 Not given (532,000) (600,000) ($20 par) (150,000) Common stock Additional paid-in capital Note: Parentheses Indicate a credit balance. a. Consolidated copyrights b. Consolidated net income c. Consolidated retained earnings d. Consolidated goodwill Stanza $ (528,000) 132,000 228,000 0 60,000 (254,000) 552,000 410,000 1,076,000 Amounts 0 (1,396,000) On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $829,000 fair value in cash and common stock. Penske also paid $10,000 in stock Issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a…
C4
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Revenues Accounts Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (812,000) 289,200 223,000 Not given 80,000 (708,000) 448,000. 978,000 626,000 Stanza $ (680,000) 170,000 204,000 0 60,000 (270,000) 632,000 378,500 Investment in Stanza Liabilities Common stock Additional paid-in capital 1,048,000 Not given (506,000) 0 (1,262,500) (600,000) ($20 par) (150,000) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $762,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $466,000 book value but a fair value of $622,000. Required: a. As of December 31, 2024, what is…
1. The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020: Select statement of financial position information: 2020 2019 Investments in financial assets (at fair value through profit or loss [FVPL]) 12,000 10,000 Inventory 575,000 498,000 Property, plant, and equipment (PPE) 1,984,000 1,396,000 Less: accumulated depreciation (650,400) (487,000) Copyright 126,000 135,000 Patents 564,000 417,000 Select statement of comprehensive income information: Depreciation of property, plant, and equipment (334,400) Amortization of patents (65,000) Interest expense (75,000) Impairment loss — copyright (9,000) Gain on sale of PPE 23,000 Additional information: PPE that originally cost $570,000 was sold during the year. 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment. DYC is subject to IFRS. What amount of net cash used…
The income statement of Mid-South Logistics includes $12 million for amortized prior service cost. Does MidSouth Logistics prepare its financial statements according to U.S. GAAP or IFRS? Explain
The 2025 Annual Report of Indigo International contains the following information: (in millions) Total assets Total liabilities Net sales Net income (a) (b) (c) June 29, 2025 $1,456 1,130 2,485 Save for Inte 129 June 27, 2024 $1,436 Compute the following ratios for Indigo International for 2025: 1,157 2,663 137 Asset turnover ratio. (Round answer to 3 decimal places, e.g. 0.851 times.) Rate of return on assets. (Round answer to 2 decimal places, e.g. 4.87.) Profit margin on sales. (Round answer to 2 decimal places, e.g. 4.87 times %
The Delivery Equipment account of Freedom Company showed the following details for 2022:Delivery Equipment01.01.22 Balance 1,500,00001.15 5,000 08.30 225,00009.30 535,000 10.31 180,000 Your examination disclosed the following:a. The P5,000 charged to the Delivery Equipment account on January 15, 2022 represents paymentof LTO registration fees for the company’s delivery equipment for the year 2022.b. The company bought a second-hand delivery truck on September 30 for P535,000, whichincludes P35,000 worth of comprehensive insurance for one year effective October 1, 2022.c. The company wrote-off a fully depreciated truck with an original cost of P225,000 on August 30;further verification disclosed that this truck is still being used by the company.d. The credit of P180,000 on October 31 represents proceeds from sale of one truck costingP350,000, which is 50% depreciated as of December 31, 2021.e. There is only one entry made to the Accumulated Depreciation account during 2022, a debit…
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Penske $ (700,000) 250,000 150,000 Not given 80,000 (600,000) 400,000 900,000 600,000 Not given (500,000) (600,000) ($20 par) (150,000) Common stock Additional paid-in capital Note: Parentheses indicate a credit balance. $ Stanza (400,000) 100,000 200,000 0 60,000 (200,000) 500,000 400,000 1,000,000 0 (1,380,000) (200,000) ($10 par) (80,000) On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000. a. As of December 31, 2021, what is the consolidated…

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