The business carried on by Kaitlyn under the name "Lost Horizon" was taken over as a running business with effect from 1st July, 2015 by North Horizon Ltd. which was incorporated on 1st October, 2015. The same set of books was continued since there was no change in the type of business and the following particulars of profits for the year ended 30th June, 2016 were available: $ Sales : Company period 40,000 Prior period 10,000 50,000 Selling Expenses 2,000 Salaries 3,600 Directors' Fees 2,400 Interest on Capital (upto 30-9-2015) 700 Variable Expenses 1,500 Depreciation 2,800 Rent 4,800 Purchases 25,000 Carriage Inwards 1,019 43,819 Net Profit 6,181 The purchase price (including carriage inwards) for the company period had increased by 10 per cent as compared to pre-incorporation period. No stocks were carried either at the beginning or at the end. You are required to draw up a Statement of Profit and Loss showing the amount of pre and post incorporation profits stating the basis of allocation of expenses. %24

The business carried on by Kaitlyn under the name "Lost Horizon" was taken over as a running business with effect from 1st July, 2015 by North Horizon Ltd. which was incorporated on 1st October, 2015. The same set of books was continued since there was no change in the type of business and the following particulars of profits for the year ended 30th June, 2016 were available: $ Sales : Company period 40,000 Prior period 10,000 50,000 Selling Expenses 2,000 Salaries 3,600 Directors' Fees 2,400 Interest on Capital (upto 30-9-2015) 700 Variable Expenses 1,500 Depreciation 2,800 Rent 4,800 Purchases 25,000 Carriage Inwards 1,019 43,819 Net Profit 6,181 The purchase price (including carriage inwards) for the company period had increased by 10 per cent as compared to pre-incorporation period. No stocks were carried either at the beginning or at the end. You are required to draw up a Statement of Profit and Loss showing the amount of pre and post incorporation profits stating the basis of allocation of expenses. %24

Name: The business carried on by Kaitlyn under the name "Lost Horizon" was
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Description: The business carried on by Kaitlyn under the name "Lost Horizon" was taken over as a runningbusiness with effect from 1st July, 2015 by North Horizon Ltd. which was incorporated on 1st October,2015. The same set of books was continued since there wa

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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The following Income Statement information has been obtained from the books of Unlimited Liquors Corporation for the year ended March 31, 2022. The Income tax rate is 40% and the company has 50,000 shares of common stock outstanding. Sales Revenue $890,000 Cost of Goods sold 300,000 Operating expenses 220,000 Income from discontinued operations 140,000 Loss on disposal of discontinued operations 60,000 1. Determine the income or loss from discontinued operations as reported on the Income Statement 2. Determine the net income or loss from the discontinued segment of the company as reported on the Income Statement 3. What is the EPS of the company
The comparative statements of Osborne Company are presented here: [{HtmlTableOSBORNE COMPANYIncome StatementsFor the Years Ended December 312014 2013Net sales $1,895,999 $1,755,959Cost of goods sold 1,063,999 1,011,459Gross profit 832,000 744,500Selling and administrative expenses 505,459 484,459Income from operations 326,541 260,041Other expenses and losses Interest expense 23,583 21,583Income before income taxes 302,958 238,458Income tax expense 93,583 74,583Net income $209,375 $163,875\\OSBORNE COMPANYBalance SheetsDecember 31Assets 2014 2013Current assets Cash $60,100 $64,200Debt investments (short-term) 74,000 50,000Accounts receivable 123,259 108,259Inventory 127,583 117,083Total current assets 384,942 339,542Plant assets (net) 663,905 535,205Total assets $1,048,847 $874,747Liabilities and Stockholders' Equity Current liabilities Accounts payable $165,459 $150,859Income taxes payable 45,083 43,583Total current liabilities 210,542 194,442Bonds payable 234,905 214,905Total…
Balance Sheet of A, B and C, who are sharing profits and losses in the ratio of 2:2:1, was as follows on 31st March, 2015, the date of dissolution : BALANCE SHEET OF A, B AND C as on March 31,2015 Liabilities 2$ Assets $ 1,20,000 Cash 1,000 Sundry Creditors Bank Loan (with a charge on Stock) 50,000 Stock 60,000 Capitals : Other Assets 1,09,000 30,000 30,000 Goodwill 20,000 Capital : A B C 20,000 2,20,000 2,20,000 Stock realised $ 52,000 and other assets were sold for $ 90,000. Expenses on realisation amounted to $ 3,000. Assuming that all the partners are insolvent, prepare necessary ledger accounts to close the books of the firm.
Tisdale Incorporated reports the following amounts in its December 31, 2024, income statement. Sales revenue Nonoperating revenue Selling expenses $310,000 Income tax expense 112,000 Cost of goods sold 62,000 Administrative expenses 52,000 General expenses Required: 1. Prepare a multiple-step income statement. 2. Indicate whether the statement "Tisdale Incorporated does not appear to have much profit-generating potentia Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a multiple-step income statement. (Losses should be indicated by a minus sign.) TISDALE INCORPORATED Multiple-Step Income Statement For the Year Ended December 31, 2024 Prev $32,000 192,000 42,000 2 of 6 Next
Selected account balances from December 31, 2015, accounts balance of the Gracy Company are listed below: Balances: Inventory, January 1, 2015 $12,500Purchases 25,000Salaries Expense 5,000Rent Expense 3,250General and Admin Exp 2,500Sales $61,000Dividends Declared 3,500 In addition, the following information is available: ·$890 of salaries have accrued as of December 31.·On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was debited to Prepaid Insurance.·On December 1, the company paid 2 months' rent in advance. The $1500 payment was debited to Rent Expense.·In December, a customer paid $1,000 in advance for merchandise that will be shipped by Gracy in 2016. The amount received was credited to Sales.·Gracy estimates its bad debts to be 1% of sales…
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During the year 2015, Sadaf Oman Company earned revenues of RO 42,000, had expenses of RO 25,000 purchased assets with a cost of RO 5,000 and paid dividends of RO 3,000. Net income for the year is Select one: O a. RO 20,000. O b. RO 15,000. O c. RO 17,000. O d. RO 45,000.
My Love and Girl Ltd is an agro processing company at Kpando. The companys published financial statements for the year ended 31st December 2008 are as follows: Income statement for the year ended 31st December 2008 GH Revenue 90, 336 Cost of Sales 70,002 Gross Profit 20, 334 Selling, general and administration expenses 4, 520 Profit before tax 15,814 Taxation 3,734 Profit after tax 12,080 Income surplus Balance at 1/01/08 5, 200 Profit for the year 12,080 17,280 Dividends: Equity 7, 600 7% preference 3, 150 Balance as at 31/12/08 6,530 Balance sheet as at 31st December 2008 Non - current assets GH Property plant and Equipment 183, 250 Net current assets 16,750 200,000 Financed by: Stated Capital: Equity shares (issued at 50 pesewas per share) 95,000 75% preference shares ( issued at 25 pesewas per share) 45,000 Income surplus 6, 530 Shareholders funds 146, 530 8% debentures 53, 470 200,000 Additional information Market price per equity shares as at 31st December 2008 was 75 pesewas.…
The following Income Statement information has been obtained from the books of Unlimited Liquors Corporation for the year ended March 31, 2022. The Income tax rate is 40% and the company has 50,000 shares of common stock outstanding. Sales Revenue $890,000 Cost of Goods sold 300,000 Operating expenses 220,000 Income from discontinued operations 140,000 Loss on disposal of discontinued operations 60,000 Determine the income or loss from discontinued operations as reported on the Income Statement: Determine the net income or loss from the discontinued segment of the company as reported on the Income Statement: What is the EPS of the company?
The following information are extracted from the books and records of the Company and its branch. The balances are at December 31,2021, the third year of the corporation’s existence. (see image below). The branch acquires all of its merchandise from the home office. The inventories of the branch at billed prices on January 1, 2021 is P 90,000 and on December 31, 2021 is P100,800. Determine a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch and b. The balance of the Shipments to Branch account before the books are closed
Below are the May 31, 2015, year-end financial statements for Gillespie Corp., prepared by a sum- mer student. There were no share capital transactions in the year just ended. Gillespie Corp. Income Statement For the Year Ended May 31, 2015 Revenues $382,000 25,000 Service revenue Unearned service revenue Rent revenue 90,000 Expenses Warehouse rent expense Prepaid advertising Salaries and benefits expense Dividends Utilities expense Insurance expense Shop supplies expense Net income 100,000 17,000 110,000 10,000 42,000 15,000 6,000 $197,000 Gillespie Corp. Statement of Changes in Equity At May 31, 2015 Share Retained Total Capital $5,000 Earnings $140,000 197,000 $337,000 Equity $145,000 197,000 $342,000 Opening balance Net income Ending balance $5,000 Gillespie Corp. Balance Sheet For the Year Ended May 31, 2015 Assets Liabilities Cash $ 50,000 Accounts payable $130,000 85,000 45,000 240,000 52,000 Accounts receivable Office equipment Building Shop supplies Total liabilities $130,000…
The following Income Statement information has been obtained from the books of Unlimited Liquors Corporation for the year ended March 31, 2022. The Income tax rate is 40% and the company has 50,000 shares of common stock outstanding. Sales Revenue $890,000 Cost of Goods sold 300,000 Operating expenses 220,000 Income from discontinued operations 140,000 Loss on disposal of discontinued operations 60,000 Calçulate the Net income of the company: