OMR Accounts OMR Cash 60,000 Payable 65,000 Salaries 30,000 Payable Prepaid Insurance 10,000 90,000 Bond 50,000 Accounts Receivable Payable Shared 70,000 Capital 120,000 Inventory Retained 75,000 Long term investment 250,000 Earnings 90,000 Land 100,000 Building

OMR Accounts OMR Cash 60,000 Payable 65,000 Salaries 30,000 Payable Prepaid Insurance 10,000 90,000 Bond 50,000 Accounts Receivable Payable Shared 70,000 Capital 120,000 Inventory Retained 75,000 Long term investment 250,000 Earnings 90,000 Land 100,000 Building

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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You have been provided with the following information for Bee Ltd, a closely-held private company: Bee Ltd Income Statement for the year ending 31/03/2021 $ Sales 1,400,000 Less: Cost of sales 550,000 Gross profit 850,000 Interest on Government Bonds 2,100 Less: 380,000 Depreciation Interest expense 35,600 10,000 Bad Debts 5,000 Loss on sale – equipment 4,000 Insurance 12,200 Other expenses 312,800 472,100 185,295 286,805 70,000 Net Profit before tax Taxation Net Profit after tax Revaluation of Land Comprehensive Net Profit 356,805 Note during the 2021 year: $ Equipment with accumulated depreciation of 11,000 was sold for cash 20,000 Land was revalued upward by The company re-purchased shares at 70,000 100,000 Marketable securities were sold for cash.
DETAILS DR CR Cash 32,900 Land and Building 350,000 Provision for Depreciation on Building 42,000 Motor Vehicle 280,000 Provision for Depreciation on Motor Vehicle 56,000 Machinery and Equipment 220,000 Provision for Depreciation on Machinery & Equipment 33,000 Capital 400,000 Drawings 12,000 10% Loan 250,000 Building Repairs 30,000 Commission Received 42,000 Opening Stock 56,000 Insurance 23,000 Bad Debts 7,550 Sales 610,000 Wages and Salaries 78,000 Discounts 5,000 12,000 Loan Interest 18,000 Creditors 45,250 Returns 6,500 9,000 Rent Received 27,000 Purchases 380,000 Debtors…
KERSENBROCK CORPORATION Balance Sheets December 31 2011 2010 2009 $ 25,000 $ 20,000 $ 18,000 Cash Receivables (net) Other current assets 50,000 45,000 48,000 90,000 95,000 64,000 Investments 75,000 70,000 45,000 Plant and equipment (net) 400,000 370,000 358,000 $640,000 $600,000 $ 80,000 85,000 $533,000 $ 75,000 $ 70,000 50,000 300,000 Current liabilities Long-term debt Common stock, $10 par Retained earnings 80,000 340,000 310,000 145,000 125,000 113,000 $640,000 $600,000 $533,000 KERSENBROCK CORPORATION Income Statement For the Year Ended December 31 2011 2010 Sales $740,000 $700,000 Less: Sales returns and allowances 40,000 50,000 Net sales 700,000 420,000 650,000 Cost of goods sold 400,000 250,000 Gross profit Operating expenses (including income taxes) 280,000 235,000 220,000 $ 45,000 $ 30,000 Net income Additional information: 1. The market price of Kersenbrock's common stock was $4.00 $5.00, and $8.00 for 2009, 2010, and 2011, respectively. 2. All dividends were paid in cash.…
Monday Co.'s financial position before the start of its liquidation Use the following information for the next four questions: is as follows:
1. (Credit Creation) Understanding bank balance sheet is useful since it also helps our understanding of the process called "credit creation." This process shows that the Fed (central bank)'s policy of increasing the money supply is enhanced by banks' operations. Suppose an occurrence of the Fed's open market purchase proceed as follows: 1. The Fed decided to purchase $100 millions of securities from Bank A. 2. Bank A holds 10% of its increase in liquidity as required reserves, 40% as excess reserves, and use 50% as loans to Borrower A. 3. Borrower A holds 50% of her liquidity as currency and 50% as deposits in Bank B. 4. Bank B holds 10% of its increase in liquidity as required reserves, 40% as excess reserves, and use 50% as loans to Borrower B. 5. Borrower B holds 50% of her liquidity as currency and 50% as deposits in Bank C. 4. Finally, Bank C holds all of its increase in liquidity as reserves (required re- serves plus excess reserves). Hence the deposit creation process stops…
Income from Net Cash Year Operations Flow $100,000 $180,000 2 40,000 120,000 40,000 100,000 10,000 90,000 10,000 120,000 The net present value for this investment is 4, 5.
Year Investment $13,000 $10,000 Cash Inflow $1,000 $2,000 $2,500 $4,000 $5,000 $4,000 $5,000 $4,000 $3,000 $2,000 Determine the Payback Period. 1234567899
The financial statements of Post Company and Stamp Company on December 31, Year 5, were as follows: BALANCE SHEETS Assets Post Stamp Cash $ 50,000 $ 10,000 Accounts receivable 250,000 100,000 Inventories 3,000,000 520,000 Equipment (net) 6,150,000 2,500,000 Buildings (net) 2,600,000 500,000 Investment in Stamp (at cost) 850,000 — $ 12,900,000 $ 3,630,000 Liabilities and Shareholders’ Equity Current liabilities $ 300,000 $ 170,000 Long-term liabilities 4,000,000 1,100,000 Common shares 3,000,000 500,000 Retained earnings 5,600,000 1,860,000 $ 12,900,000 $ 3,630,000 STATEMENTS OF INCOME AND RETAINED EARNINGS Post Stamp Sales revenue $ 3,500,000 $ 900,000 Other revenues 300,000 30,000 3,800,000 930,000 Cost of goods sold 1,700,000 330,000 Selling and administrative expenses 300,000 100,000 Other expenses 200,000 150,000…
17. Current Attempt in Progress The following information pertains to Sheridan Company: Cash $21,500 Accounts receivable 125,000 Inventory 75,500 Plant assets (net) 384,000 Total assets $606,000 Accounts payable $74,500 Accrued taxes and expenses payable 25,500 Long-term debt 48,500 Common stock ($10 par) 155,000 Paid-in capital in excess of par 89,500 Retained earnings 213,000 Total equities $606,000 Net sales (all on credit) $801,000 Cost of goods sold 601,500 Net income 81,500 Compute the following: (Round answers to 2 decimal places e.g. 15.25.) (a) Current ratio : 1 (b) Inventory turnover times (c) Accounts receivable turnover times (d) Book value per share $ (e) Earnings per share $ (f) Debt to assets % (g) Profit margin on sales % (h) Return on common stockholders’…
Given the following information for Smashville, Ic., construct a balance sheet: $22,000 $21,000 $102,000 $37,000 $120,000 $12,000 $33,000 $64,000 Current liabilities: Cash: Long-term debt: Other assets: Fixed assets: Other liabilities: Investments: Operating assets: Total assets Total liabilities and equity
555)
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