You are asked by a liquidator of a company to prepare a Statement of Account to be laid before a meeting of the shareholders from the following: BALANCE SHEET as on date of Liquidation 1-1-2016 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital 4,000 Equity Shares of $100 each called $80 3,20,000 1,000 Preference Shares of $100 each called $70 70,000 (b) Reserves and Surplus: Surplus A/c (Negative Balance) (-) 1,00,000 (2) Non-current Liabilities Secured Loans Secured Loan from Bank on Building and Machinery 1,50,000 (3) Current Liabilities Trade Creditors 2,60,000 Total Equity and Liabilities 7,00,000 II. Assets (1) Non-Current Assets Fixed Assets 4,00,000 (2) Current Assets Books Debts 3,00,000 Total Assets 7,00,000 The assets realised as follows : 1-4-2016- Book Debts $1,00,000, expenses paid $4,000 ; 1-6-2016Fixed Assets (final) $3,00,000, Book Debts $ 1,00,000. 1-8-2016– Book Debts (final) $50,000. The Liquidator is entitled to 5% on collections from book debts and 2% on the amount paid to equity shareholders. Prepare the Liquidator's Final Statement of Account on the assumption that disbursements are made in accordance with law, as and when cash is available.

You are asked by a liquidator of a company to prepare a Statement of Account to be laid before a meeting of the shareholders from the following: BALANCE SHEET as on date of Liquidation 1-1-2016 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital 4,000 Equity Shares of $100 each called $80 3,20,000 1,000 Preference Shares of $100 each called $70 70,000 (b) Reserves and Surplus: Surplus A/c (Negative Balance) (-) 1,00,000 (2) Non-current Liabilities Secured Loans Secured Loan from Bank on Building and Machinery 1,50,000 (3) Current Liabilities Trade Creditors 2,60,000 Total Equity and Liabilities 7,00,000 II. Assets (1) Non-Current Assets Fixed Assets 4,00,000 (2) Current Assets Books Debts 3,00,000 Total Assets 7,00,000 The assets realised as follows : 1-4-2016- Book Debts $1,00,000, expenses paid $4,000 ; 1-6-2016Fixed Assets (final) $3,00,000, Book Debts $ 1,00,000. 1-8-2016– Book Debts (final) $50,000. The Liquidator is entitled to 5% on collections from book debts and 2% on the amount paid to equity shareholders. Prepare the Liquidator's Final Statement of Account on the assumption that disbursements are made in accordance with law, as and when cash is available.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Attached is the company details and journal that was created. Using this information, now prepare the: Stockholders equity section of the balance sheet at December 31, 2021. The following information must be clearly stated/shown: information on par values, the number of shares authorized and issued where necessary. the sub total for the total paid in capital. Retained earnings. total stockholders’ equity.
Subject: acounting
sheet on December 30, 2025, so that the CFO could get an idea of how the company stood. He knows that certain debt agreements with its creditors require the company to maintain a current ratio of at least 2:1. The preliminary balance sheet is as follows. Current assets Cash Accounts receivable : Prepaid insurance Equipment (net) Total assets Current liabilities Accounts payable Flounder Corporation Balance Sheet December 30, 2025 Liabilities and Stockholders' Equity Current liabilities Assets Stockholders' equity Common stock Current ratio $22,500 Accounts payable Salaries and wages payable Long-term liabilities Notes payable Total liabilities 29,000 5,200 Working capital $ Current ratio Liabilities and Stockholders' Equity $18,000 Retained earnings Total liabilities and stockholders' equity Working capital $ $56,700 180,000 $236,700 $18,000 :1 9,000 90,000 47,700 Calculate the current ratio and working capital based on the preliminary balance sheet. (Round current ratio to 1 decimal…
Subject : Accounting
How do I solve this?
S1. Account
Jj.84.
Spicer Inc. showed the following alphabetized list of adjusted account balances at December 31, 2023. Assume that the preferred shares are non-cumulative. Accounts Payable Accounts Receivable Accumulated depreciation, Equipment Accumulated depreciation, Warehouse Cash Cash Dividends Common Shares Equipment Income Tax Expense Land Notes Payable, due in 2026 Operating Expenses Preferred Shares Retained Earnings Revenue Warehouse Current assets $ 26,760 40,200 11,140 22,280 9,400 20,600 Required: Prepare a classified balance sheet at December 31, 2023. (Enter all amounts as positive values.) Assets 122,000 79,400 41,600 127,600 34,600 110,200 40,200 28,720 282,100 138,800 SPICER INC. Balance Sheet December 31, 2023 K
Question-based on, "Stockholders equity section". I have tried it but got it incorrect.
Use the information given to fill out balance sheet completely
The stockholder's equity section of the balance sheet contains. .common stock .preferred stock .Additional stock .other accumulated comprehensive income. .Retained earnings It is important to understand how changes in the accounts impact the balance sheet and the financial position of the organization Genaing inc.has $200,000 of 5%, $10 par value preferred stock and $450,000 of $5 par value common stock issued and outstanding Dec. 31,2021 There were no stock issuance, stock splits or stoxk dividends for 2021. The organization's calender end is on Dec.31 2021. Preferred stock did not receive any dividends for 2019 or 2020 because the company did not have enough cash reserves to pay out dividends. The preferred stock has a mix characteristics .10% of the preferred stock is noncumulative, nonparticipating .20% of the preferred stock is cumulative, nonparticipating .20% of the preferred stock is noncumulative ,participating .50 of the preferred stock is cumulative, participating The…
Prepare the company’s Statement of Changes in Shareholders’ Equity for the year ended December 31, 2021.