Assignment 1The following are the Statements of Financial Position of Yomi Limited for the years ended December 31, 2020 and 2021. 2021 2020 AssetsGH₵GH₵GH₵GH₵Land 560,000 300,000Building and Equipment 2,000,000 1,900,000 2,560,000 2,200,000Accumulated Depreciation (800,000) (770,000) 1,760,000 1,430,000Long-Term Investments 50,000 25,000 Current Assets Inventory300,000 320,000 Accounts Receivable410,000 460,000 Cash30,000 50,000 Prepaid20,000760,00015,000845,000 2,570,000 2,300,000 Equities and Liabilities Ordinary shares (GH₵2 par value) 200,000 160,000Share premium 710,000 550,000Retained Earnings 670,000 620,000Bonds 500,000 800,000Long-Term Note Payable 150,000 0 Current LiabilitiesAccountable Payable 300,000 120,000Accrued Liabilities 40,000 50,000 2,570,000 2,300,000 Additional information about 2021 transactions and events: i) Net profit for the year was GH₵110,000ii) Depreciation expense on buildings and equipment was GH₵60,000iii) Sold equipment with a cost of GH₵50,000 and accumulated depreciation of GH₵30,000 for cash of GH₵17,000iv) Declared and paid cash dividends of GH₵60,000v) Issued a GH₵150,000 long-term note payable for buildings equipment.vi) Purchased long-term investments for GH₵25,000Paid GH₵300,000 on the bonds payableIssued 20,000 shares of GH₵2 par value ordinary shares for GH₵200,000.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

Cash Flow Statement: A cash flow statement is a financial statement that shows the quantity of cash…

Answered: ssignment 1 The following are the…

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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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:

i) Net profit for the year was GH₵110,000
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

iv) Declared and paid cash dividends of GH₵60,000
v) Issued a GH₵150,000 long-term note payable for buildings equipment.
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.

ix) Purchased land for GH₵260,000.

Required:

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

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