The following is an extract from the trial balance of CF at 31 March 2006: 1 of 7 GH¢°000 GH¢°000 DR CR Administration expenses 260 Cost of sales 480 Interest paid Interest bearing borrowings Inventory at 31 March 2006 Property, plant and equipment at cost Property, plant and equipment, depreciation to 31 March 2005 190 2,200 220 1,500 540 Distribution costs 200 Revenue 2,000 Notes: (i) Included in the closing inventory at the reporting date was inventory at a cost of GH¢35,000, whose net realisable value was ascertained to be GH¢19,000. (ii) Depreciation is provided for on property, plant and equipment at 20% per year using the reducing balance method. Depreciation is regarded as cost of sales. (iii)A member of the public was seriously injured while using one of CE's products on 4 October 2005. Professional legal advice is that CE will probably have to pay GH¢500,000 compensation. Required: Prepare CE's income statement for the year ended 31 March 2006 down to the line 'profit before tax'.

The following is an extract from the trial balance of CF at 31 March 2006: 1 of 7 GH¢°000 GH¢°000 DR CR Administration expenses 260 Cost of sales 480 Interest paid Interest bearing borrowings Inventory at 31 March 2006 Property, plant and equipment at cost Property, plant and equipment, depreciation to 31 March 2005 190 2,200 220 1,500 540 Distribution costs 200 Revenue 2,000 Notes: (i) Included in the closing inventory at the reporting date was inventory at a cost of GH¢35,000, whose net realisable value was ascertained to be GH¢19,000. (ii) Depreciation is provided for on property, plant and equipment at 20% per year using the reducing balance method. Depreciation is regarded as cost of sales. (iii)A member of the public was seriously injured while using one of CE's products on 4 October 2005. Professional legal advice is that CE will probably have to pay GH¢500,000 compensation. Required: Prepare CE's income statement for the year ended 31 March 2006 down to the line 'profit before tax'.

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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Given the book values of the inventory items of a Farm A as of 31 December 2018: ITEM VALUE (P) 1 Accounts Payable 5,000 2 Machines and equipment 15,000 3 Cash-on-hand 1,500 4 Merchandise inventories 12,400 5 Remaining balance on long-term debt 8,700 6 Buildings and improvements 20,000 7 Current portion of long-term debt 1,700 8 Accrued interest payable 1,400 9 Accounts receivable 6,200 10 Mortgage payable 14,500 11 Land 50,000 12 Prepaid expenses 700 1. Construct the balance sheet of Farm A as of 31 December 2018.2. Compute for and interpret the following:a. Current ratiob. Working capitalc. Acid-test ratiod. Net capital ratioe. Networth ratiof. Debt/Asset ratiog. Debt/Equity ratio3. What can you say about the short-run and long-run financial conditions of Farm A?4. What do you think is the main limitation of the given information? Can you effectively analyze both the short-run and long-run positions of Farm A? Why or why not?
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Padre Company Book Values 12/31 $ 193,250 Sol Company Book Values 12/31 $ 72,900 Fair Values 12/31 $ 72,900 Items Receivables 228,000 369,000 369,000 Inventory 602,500 190,000 242,200 Land 765,000 195,000 166,200 Building and equipment (net) 765,000 271,000 340,000 Franchise agreements 224,000 216,000 249,900 Accounts payable (350,000) (138,000) (138,000) Accrued expenses (119,000) (47,500) (47,500) Long-term liabilities Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues (995,000) (552,500) (552,500) Common stock-$20 par value (660,000) 0 0 0 (210,000) (70,000) (90,000) 0 0 Expenses (522,500) (1,041,250) 980,000 (251,000) 0 (352,900) 0 328,000 0 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol's outstanding stock by paying $108,000 in cash and issuing 17,000…
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6.
TRANSACTIONS DURING January 2019 Cost (OMR) Amount (OMR) 3000 3000 Date Particulars Units Beginning Inventory 300 200 10 15 January 1 January 2 January 11 Purchase January 18 Purchase Purchase 100 17 1700 300 20 6000 Total Purchase 900 13,700 Date Particulars Units Cost (OMR) Amount (OMR) January 8 Sales 300 30 9000 January 15 Sales 250 40 10000 Total Sales 550 19000 Required a) How would issues and closing inventory be valued using FIFO b) Give journal entry assuming that if the business follows perpetual inventory method
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Qq.12. Subject :- Account
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Please answer attached
Qq.46. Subject :- Account
A6