Question 9 The following statements of financial position have been prepared at 31 December 2008: Smith Ltd Jones Ltd $ $ Non-current assets Property, plant and equipment Shares in Jones (120,000 shares) Current assets Total assets Equity Share capital ($0.2 shares) Retained earnings Current liabilities Total equity and liabilities 85,000 60,000 145,000 160,000 305,000 100,000 70,000 170,000 135,000 305,000 18,000 18,000 84,000 102,000 30,000 25,000 55,000 47,000 102,000 4 Smith Ltd acquired its holding in Jones Ltd on 31 December 20X7, when Jones' retained earnings stood at $20,000. At this date, the fair value of items of property, plant and equipment was estimated as being $10,000 higher than their book value. The remaining life of these assets at 31 December 20X7 was estimated at five years and Jones uses the straight-line method of depreciation. Prepare the consolidated statement of financial position of Smith Ltd at 31 December 20x8.

Question 9 The following statements of financial position have been prepared at 31 December 2008: Smith Ltd Jones Ltd $ $ Non-current assets Property, plant and equipment Shares in Jones (120,000 shares) Current assets Total assets Equity Share capital ($0.2 shares) Retained earnings Current liabilities Total equity and liabilities 85,000 60,000 145,000 160,000 305,000 100,000 70,000 170,000 135,000 305,000 18,000 18,000 84,000 102,000 30,000 25,000 55,000 47,000 102,000 4 Smith Ltd acquired its holding in Jones Ltd on 31 December 20X7, when Jones' retained earnings stood at $20,000. At this date, the fair value of items of property, plant and equipment was estimated as being $10,000 higher than their book value. The remaining life of these assets at 31 December 20X7 was estimated at five years and Jones uses the straight-line method of depreciation. Prepare the consolidated statement of financial position of Smith Ltd at 31 December 20x8.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 8.1.1MBA

See similar textbooks

Similar questions

Current Assets P 1,375,000Property, plant and equipment 3,375,000Other non-current assets 500,000Total Assets P 5,250,000 Liabilities and Shareholders’ equity Total liabilities P 1,500,000Ordinary shares, P10 par value 4,000,000Additional paid in capital 750,000Deficit (1,000,000)Total liabilities and equity P 5,250,000The stockholders and creditors approved the quasi reorganization effective July 1,2011, to be accomplishedby a reduction in property, plant and equipment (net) P 875,000, a reduction in other non-current assets ofP375,000, and a reduction in par value from P10 to P51. Logan’s July 1 balan ce sheet after the quasi-reorganization should show total assets ofa. P 4,000,000b. P 2,500,000c. P 4,375,000d. P 3,875,0002. The balance in additional paid in capital after the quasi-reorganization on July 1 is:a. P 750,000b. P 2,000,000c. P 500,000d. P-0-3. Logan’s deficit after the quasi -reorganization on July 1,2011 should be:a. P 750,000b. P 250,000c.…
QUESTION 1 1.1 REQUIRED Use the following financial data to prepare the Pro Forma Statement of Financial Position as at 31 December 2021. INFORMATION Stylcor Ltd has provided the following financial data needed to prepare the Pro Forma Statement of Financial Position as at 31 December 2021. Sales for 2020 amounted to R3 800 000 and sales for 2021 are estimated to increase to R4 000 000. Plant and equipment costing R300 000 will be purchased during 2021. Total depreciation for 2021 is expected to amount to R225 000. The following must be projected using the percentage of sales: • Inventory Accounts receivable Accounts payable The business will maintain a cash balance of R120 000 and any surplus cash will be invested in long term financial investments. 50 000 shares at R5 each are expected to be issued in June 2021. The business predicts an 8% net profit margin. A final dividend of 20 cents per share is expected to be proposed in December 2021, payable in January 2022. The long term loan…
SNIDER CORPORATIONBalance SheetDecember 31, 20X1 Assets Current assets: Cash $ 52,200 Marketable securities 24,400 Accounts receivable (net) 222,000 Inventory 238,000 Total current assets $ 536,600 Investments 65,900 Plant and equipment. $615,000 Less: Accumulated depreciation 271,000 Net plant and equipment 344,000 Total assets $ 946,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 93,400 Notes payable 70,600 Accrued taxes 17,000 Total current liabilities $ 181,000 Long-term liabilities: Bonds payable 153,200 Total liabilities $ 334,200 Stockholders' equity Preferred stock, $50 par value $ 100,000 Common stock, $1 par value 80,000 Capital paid in excess of par 190,000 Retained earnings 242,300 Total stockholders' equity $ 612,300 Total liabilities and stockholders' equity $ 946,500…
The statement of financial position of Weatherly Unlimited (Pty) Ltd is presented below: Statement of FinancialPosition as at 28 February 2022 R Non - current assets 1 850 000 Property, plant and equipment 1.850 000Current assets 1 250 000 Inventory 480 000 Trade receivables 350 000 Cash and cash equivalents 420 000TOTAL ASSETS 3 100 000 EQUITY 1 850 000 Ordinary share capital 1 000 000 Distributable reserves 850 000Non - current liabilities 650 000 Long-term loan 650 000 Current liabilities 600 000 Trade payables 545 000Short-term portion of long-term loan 55 000 TOTAL LIABILITIES 1 250 000 TOTAL EQUITY AND LIABILITIES3 100 000 Additional information: The company plans to increase its sales by 10% in the following year. Current annual sales total R2 500 000. After tax profit margin is 5% and half of the profits is retained within the company. All sales are currently made on credit and in future, sales will remain on credit. What is the additional working capital required to support…
As of December 31, 2018, Sadaf Oman Company reported assets of RO 3,700,000, share capital of RO 990,000 and retained earnings of RO 1,600,000. Total liabilities reported on the statement of financial position as of December 31, 2018 is Select one O a RO 1,100,000. Ob RO 1350,00. OC RO 1,110000. O d. RO 1,240,000.
Cash GRS Ltd. Statement of Financial Position As at December 31, 2023 Accounts receivable Inventory Property, plant, and equipment (net) Land Accounts payable Common shares Retained earnings $673,400 543,900 2,408,700 2,050,000 2,456,000 $8,132,000 $259,000 2,524,000 5,349,000 $8,132,000 From GRS's income statement, cost of goods sold for 2023 was $1,825,000. Accounts payable on December 31, 2022 was $151,000. Calculate the current ratio, acid-test ratio, and days payables outstanding. (Round current ratio and acid-test ratio to 2 decimal places, e.g. 7.25. Round days payable outstanding to 0 decimal places, e.g. 53. Use 365 days for calculation.)
Panda Bhd is a company that listed on Bursa Malaysia. It has finally succeeded in acquiring a controlling interest in its principle supplier, Stone Bhd. On 1 April 2020, Panda purchased 44,680 shares in Stone Bhd. The consideration consisted of two elements: a share exchange of three shares in Panda for every five acquired shares in Stone and the issue of a RM100 6% loan note for every 500 shares acquired in Stone. None of the purchase consideration, both share issue and issue of the loan notes has yet been recorded by Panda. At the date of acquisition, shares in Panda had a market value of RM5 each and the shares of Stone had a stock market price of RM3.50 each. The retained earnings of Stone on the date of acquisition was RM18,000. Panda group uses the fair value method to value the non-controlling interest. At the date of acquisition, the share price of Stone can be deemed to be representative of the fair value of the shares held by the non controlling interest. On 1 April 2020, the…
The extract of statement of financial position for the year ended 30 June 2022 for Pears Ltd and Sapodille Ltd are as follows: Extract of statement of financial position for the year ended 30 June 2022 Equity and liabilities Pears Ltd Sapodille LtdEquity $ $ Share capital ($ 1 Each) 487,500 420,000Share premium 300,000 -Retained earnings 262,500 337,500LiabilitiesNon current liabilities 187,500 75,000Current liabilities 150,000 15,000 On 01 July…
Question 1 a) Given below are the statements of financial position of H and its subsidiary S as at 31 December 2021. Ordinary shares of RM1.00 each Share premium Revaluation reserve Retained profit Liabilities Inventory Accounts receivable H RM 120,000 250,000 70,000 100,000 Fixed Assets - Land 300,000 Investment in S - 150,000 ordinary shares at cost 250,000 RM Share premium 50,000 Revaluation reserve 15,000 Retained profit 20,000 S RM 500,000 200,000 100,000 50,000 40,000 30,000 50,000 20,000 50,000 50,000 740,000 350,000 i. NCI is not measured at fair value. H acquired 150,000 of the ordinary shares of S on 1 January 2017 when the balance in S's accounts were: 740,000 350,000 Required: Prepare the consolidated statement of financial position of H and of its subsidiary S as at 31 December 2021 where: ii. NCI is measured at fair value where the fair value of S's shares on 1 January 2017 was RM1.45 per share and on 31 December 2021 was RM1.80
Transaction Analysis Goal Systems, a business consulting firm, engaged in the following transactions: a. Issued common stock for $100,000 cash. b. Borrowed $60,000 from a bank. c. Purchased equipment for $42,000 cash. d. Prepaid rent on office space for 6 months in the amount of $9,000. e. Performed consulting services in exchange for $7,100 cash, f. Performed consulting services on credit in the amount of $19,250. 9. Incurred and paid wage expense of $10,200. h. Collected $13,500 of the receivable arising from Transaction f 1. Purchased supplies for $1,680 on credit. 3. Used $1,100 of the supplies purchased in Transaction i k. Paid for all of the supplies purchased in Transaction 1. Required: For each transaction described above, indicate the effects on assets, liabilities, and stockholders' equity using the format below. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND…
#17Clarissa company’s accounting records provided the following information:1/1/20B 12/31/20BCurrent assets 120,000 ?Property, plant and equipment 800,000 850,000Current liabilities ? 65,000Noncurrent liabilities 290,000 ?All assets and liabilities of the entity are reported in the schedule above. Working capital of P46,000 remained unchanged from20A to 20B. Net income in 20B was P32,000. No dividends were declared during 20B and there were no other changes inowners’ equity. What amount should be reported as noncurrent liabilities on December 31, 20B? ANSWER: 308,000 PLS provide solution and explanation for the answer above Philippines Accounting standard
The revaluation surplus in the equity section of Light Company’s December 31,20x10 statement of financial position is a. 77,000 b.110,000 c. 123,443 d. 109,500 And journal entry