CORIS RA is a government owned enterprise which is legislated to generate its own income which it uses  to cover capital and recurrent expenditures. The legislations also give the government the powers to  order CORIS RA to transfer all or part of the income it generates to the consolidated fund as it deems fit.  Outside of these powers, its government also provide CORIS RA with monthly subventions to cover its  recurrent expenditures based on CORIS RA budgetary demands and the legal allocations by the  government.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

CORIS RA is a government owned enterprise which is legislated to generate its own income which it uses 
to cover capital and recurrent expenditures. The legislations also give the government the powers to 
order CORIS RA to transfer all or part of the income it generates to the consolidated fund as it deems fit. 
Outside of these powers, its government also provide CORIS RA with monthly subventions to cover its 
recurrent expenditures based on CORIS RA budgetary demands and the legal allocations by the 
government. 
For the 2017 and 2018, CORIS RA used the cash basis to prepare its financial statements, although some 
of the accounting transactions were recorded using the accrual basis. It should be noted that the 
government instructed all of its agencies to use an accrual basis that is guided and recommended by 
IPSASs. 
You were asked by to government to assist CORIS RA with its accounting processes, which involved the 
recording, generation and preparation of accounting transactions and final accounts as stipulated by the 
IPSASs. 
Working with a team of qualified and experienced accountants, you were able to prepare the following 
accounting information of CORIS RA for the year ending December 2020: 
Details Amount
Dividend Received 93,250
Loan payment 143,000
Amounts Recovered 194,000
Interest Expense 200,000
Court Administration Fees 240,000
Cost of Training 275,000
Bar License 300,400
Store Rent 300,750
Fines and Penalties 330,000
General Cleaning 350,000
Sanitation 370,000
Accumulated Fund (1/1/2020) 370,600
Basic Taxes and Rates 370,900
Allowances 390,470
Equity Investment Acquired 420,000
Royalties 430,000
Accountancy and Consultancies cost 470,000
Work-In-Progress 490,000
Herbalist License 530,370
Posts not on Establishment 580,000
Other Expenditure 600,000
Stool Land Revenue 600,000
Transport and Travelling cost 620,000
Utilities 630,000
Hostel License 630,920
Details Amount
Advances to Staff 660,000
Local Park Fees 720,400
Inventory and Consumables 800,000
Special Services 820,000
Property Rate 820,900
Social Benefit 840,300
Market Tolls 870,000
Consumption of Fixed Assets 960,000
Infrastructure, Plant and Equipment 980,000
Permit Fees 990,000
Proceeds from Sale of Equity 990,320
Established Posts 1,140,700
Development Bonds Issued 1,300,000
Business Income 2,300,600
Loans Received 2,330,000
Local Fund 2,930,000
Rent from Land and Building 6,120,800
Central Government Salaries 12,000,000
Cash and Cash Equivalent @ (1/1/2020) 12,300,240
Parish Development Facility 15,000,600
NOTES
1. You are to ensure that CORIS RA adopts and maintain the accrual accounting basis when preparing 
its financial statements
2. As of December 31, 2020, the Established Post had outstanding salaries of $180,000,000.00
3. Closing Inventory and Consumables as at December 31, 2020 stood at $170,000,000.00 
Using the guidelines and formats set out in the applicable IPSASs, you are to:
A. Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020 

Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Federal financial accounting and reporting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education