CORIS RECREATION ASSEMBLY 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 and 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 Salary 2 580,000 Other Expenditure 600,000 Stool Land Revenue 600,000 Transport and Travelling cost 620,000 Utilities 630,000 Hostel License 630,920 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 Salary 1 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: Prepare CORIS RA Statement of Cash Flow for the year ended December 31, 2020. The IPSASs indicated some benefits of Cash Flow Information. State any two of these benefits to an entity and also the general public.
CORIS RECREATION ASSEMBLY
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
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 and 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
Salary 2 580,000
Other Expenditure 600,000
Stool Land Revenue 600,000
Transport and Travelling cost 620,000
Utilities 630,000
Hostel License 630,920
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
Salary 1 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:
- Prepare CORIS RA Statement of
Cash Flow for the year ended December 31,
2020.
- The IPSASs indicated some benefits of Cash Flow Information. State any two of
these benefits to an entity and also the general public.
Step by step
Solved in 2 steps
