Problem 4. From the following information pertaining to Nonesuch Insurance Company for the year ended 31e December 2019 Particulars Amount (in R.O.) Claims under policies 60,000 Commission on direct business 30,000 Other commission paid 3,000 Other expenses of management: Salaries 24,000 Rent and Repairs 10,000 Salaries to director 14,000 Premiums after re-insurance 176,250 Interest, dividends on their 2,340 investments Commission on reinsurance ceded 4,500 Share Capital 120,000 Investments 100,000 Furniture and fixtures 60,000 Agents Balances 2,090 22 The following information is also available: Outstanding claims at the end of the period 31. Dec. 2018 5,000 Premiums collected in advance 25,000 Depreciation to be provided on Furniture 2,000 Rent and repairs outstanding for the 5,000 current year Required: (a) Ascertain the net profit earned by the company by preparing income statement (b) Prepare Balance Sheet as on 31. December 2019

Problem 4. From the following information pertaining to Nonesuch Insurance Company for the year ended 31e December 2019 Particulars Amount (in R.O.) Claims under policies 60,000 Commission on direct business 30,000 Other commission paid 3,000 Other expenses of management: Salaries 24,000 Rent and Repairs 10,000 Salaries to director 14,000 Premiums after re-insurance 176,250 Interest, dividends on their 2,340 investments Commission on reinsurance ceded 4,500 Share Capital 120,000 Investments 100,000 Furniture and fixtures 60,000 Agents Balances 2,090 22 The following information is also available: Outstanding claims at the end of the period 31. Dec. 2018 5,000 Premiums collected in advance 25,000 Depreciation to be provided on Furniture 2,000 Rent and repairs outstanding for the 5,000 current year Required: (a) Ascertain the net profit earned by the company by preparing income statement (b) Prepare Balance Sheet as on 31. December 2019

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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2. Following information is available for the year 2020 of ABC SAOG. You are required to prepare Statement of comprehensive income and Statement of financial position. Share premium 728,526 Legal reserve 1,134,166 Revaluation reserve 14,644,500 Trade and other payables 10,020,506 Taxation payable 238,108 Directors' remuneration 54,000 Taxation expenses 384,036 Property, plant and equipment 20,226,258 Revenue 43,627,562 Cost of sales 30,950,720 Finance costs 452,636 Administrative and general expenses 2,072,896 Other operating income 74,020 Inventories 6,705,426 Trade and other receivables 10,348,144 Assets held-for-sale 11,571,592 Cash and bank balances 1,291,814 Retained earnings (opening) 6,131,332 Long term loans 7,080,676 Share capital 3,402,500 Selling and distribution expenses 8,092,802 Current portion of long term loans 1,496,136 Short term borrowings 3,572,292
Property taxes Franchise taxes $425,000 51,500 7,900 Charges for general government services Charges for public safety services Charges for health and sanitation services Issued long-term note payable Receivables at end of year: Property taxes (90% estimated to be collectible) Payments: Salary: General government Public safety 5,500 49,200 286,500 104,500 68,350 48,300 25,500 Health and sanitation Rent: General governmant Public safety 13,500 26,900 Health and sanitation 5,400 Maintenance: General government Public safety 24,400 5,100 9,400 Health and sanitation Insurance: General government Public safety ($2,300 still prepaid at end of year) Health and sanitation 8,300 11,500 16,200 22,920 Interest on debt Principal payment on debt Storage shed Equipment Supplies (20% still held) (public safety) 5,730 201,000 85,500 15,400 96,000 Investments Ordered but not received: Equipment 13,500 MacBook Pro
Net Income for 2019? Net Income for 2020? Net Income for 2021? Retained Earnings as of December 31, 2019? Retained Earnings as of December 31, 2020? Retained Earnings as of December 31, 2021?
A Corporation provided the following information for the current year: Income from continuing operation 2,000,000Loss on credit risk of financial liability at FVPL 200,000Revaluation surplus 1,500,000Loss from discontinued operation 300,000Unrealized gain on financial asset – FVPL 900,000Net “remeasurement” gain on defined benefit plan during the year 400,000 Unrealized gain on equity investment – FVOCI 1,000,000Investment gain on debt investment – FVOCI 900,000Unrealized loss on future contract designated as a cashflow hedge 200,000Translation gain on foreign operation 300,000 [Q7]: Determine the total amount of (21) other comprehensive income and (22) comprehensive income for the current year.
Accounting
Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio. Please help with the both questions mentioned
Skip to question [The following information applies to the questions displayed below.]At March 31, 2019, the end of the first year of operations at Lukancic Inc., the firm’s accountant neglected to accrue payroll taxes of $6,370 that were applicable to payrolls for the year then ended. Exercise 7-7 (Algo) Part a - Horizontal Model Required:a-1. Use the horizontal model to show the effect of the accrual that should have been made as of March 31, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
FILLING IN THE RATIOS .. THE LEFT SIDE IS 2019 THE RIGHT SIDE IS 2020 IN THE IMAGE. Jergan CorporationBalance SheetsDecember 31 2020 2019 2018 Cash $ 30,800 $ 17,600 $ 18,700 Accounts receivable (net) 50,500 44,200 47,100 Other current assets 89,600 94,900 63,900 Investments 55,300 71,000 45,100 Plant and equipment (net) 500,500 370,000 358,500 $726,700 $597,700 $533,300 Current liabilities $85,500 $79,800 $69,400 Long-term debt 144,300 84,100 50,300 Common stock, $10 par 348,000 316,000 304,000 Retained earnings 148,900 117,800 109,600 $726,700 $597,700 $533,300 Jergan CorporationIncome StatementFor the Years Ended December 31 2020 2019 Sales revenue $738,000 $605,500 Less: Sales returns and allowances 39,100 29,900 Net sales 698,900…
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1. Evaluation of the company financial statement.
What is the overstatement or understatement in the beginning retained earnings for 2019? 500,000 understatement 200,000 understatement 300,000 overstatement 100,000 overstatement 500,000 overstatement 200,000 overstatement 300,000 understatement 100,000 understatement None of the choices