ssignment 1 The following are the Statements of Financial Position of Yomi Limited for the years ended December 31, 2020 and 2021. 2021 2020 Assets GH₵ GH₵ GH₵ GH₵ Land 560,000 300,000 Building and Equipment 2,000,000 1,900,000 2,560,000 2,200,000 Accumulated Depreciation (800,000) (770,000) 1,760,000 1,430,000 Long-Term Investments 50,000 25,000 Current Assets Inventory 300,000 320,000 Accounts Receivable 410,000 460,000 Cash 30,000 50,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assignment 1

The following are the Statements of Financial Position of Yomi Limited for the years ended December 31, 2020 and 2021.

 

2021

 

2020

 

Assets

GH₵

GH₵

GH₵

GH₵

Land

 

560,000

 

300,000

Building and Equipment

 

2,000,000

 

1,900,000

   

2,560,000

 

2,200,000

Accumulated Depreciation

 

(800,000)

 

(770,000)

   

1,760,000

 

1,430,000

Long-Term Investments

 

50,000

 

25,000

 

Current Assets

       

Inventory

300,000

 

320,000

 

Accounts Receivable

410,000

 

460,000

 

Cash

30,000

 

50,000

 

Prepaid

20,000

760,000

15,000

845,000

   

2,570,000

 

2,300,000

         

Equities and Liabilities

       

Ordinary shares (GH₵2 par value)

 

200,000

 

160,000

Share premium

 

710,000

 

550,000

Retained Earnings

 

670,000

 

620,000

Bonds

 

500,000

 

800,000

Long-Term Note Payable

 

150,000

 

0

 

Current Liabilities

Accountable Payable

 

300,000

 

120,000

Accrued Liabilities

 

40,000

 

50,000

   

2,570,000

 

2,300,000

 

Additional information about 2021 transactions and events:                                          

  1. i) Net profit for the year was GH₵110,000
  2. ii) Depreciation expense on buildings and equipment was GH₵60,000
  • iii) Sold equipment with a cost of GH₵50,000 and accumulated depreciation of GH₵30,000 for cash of GH₵17,000
  1. iv) Declared and paid cash dividends of GH₵60,000
  2. v) Issued a GH₵150,000 long-term note payable for buildings equipment.
  3. vi) Purchased long-term investments for GH₵25,000
  • Paid GH₵300,000 on the bonds payable
  • Issued 20,000 shares of GH₵2 par value ordinary shares for GH₵200,000.
  1. ix) Purchased land for GH₵260,000.

 

Required:

 Prepare the company’s statement of cash flows for the year ended 31stDecember 2021, using the indirect method, adopting the format

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