Accounting Answers

The following abrideged statement of financial position of kudu CC as at 31 December 2020 2020 2019 ASSETS Non-current assets 220 000 220 000 current assets 123 000 77 000 352 000 297 000 CAPITAL AND LIABILITIES members contribution: 180 000 180 000 Berry (50%) 70 000 70 000 Rita (35%) 50 000 50 000 Tom (15%) 60 000 60 000 Retained earnings 90 000 65 000 Non-current liabilities 45 000 45 000 Current liabilities 37 000 7 000 352 000 297 000. Required to: 1) Calculate the new members interest and show the statement of changes in net membership investments and membership interest in each of the following instances separately. (a) Berry decided to sell 1/5 of his current interest to Rita. The interest is valued at 25 000 of which 15 000 has been deposited into the bank account of the CC as a loan from Berry. The balance of the amount has been paid to Berry as his own funds. (b) The CC buy back the interest of Tom for 50 000.

A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete

the following table and use that information to answer these questions. (LOI, LO2,

LO5, LO6)

a. Identify the fixed and variable inputs.

b. What are the firm's fixed costs?

c. What is the variable cost of producing 475 units of output?

d. How many units of the variable input should be used to maximize profits?

e. What are the maximum profits this firm can earn?

f. Over what range of the variable input usage do increasing marginal returns exist?

8. Over what range of the variable input usage do decreasing marginal returns exist?

h. Over what range of input usage do negative marginal returns exist?

Trial balance of GM as at 31 December 2021 Debit(RM) Credit(RM)

Sales 126,500

Purchases 99,850

Premises (cost) 100,000

Accum. depreciation at 1 Jan. 2021_Premises 25,000

Plant (cost) 18,000

Accum. depreciation at 1 Jan. 2021_Plant 2,300

Wages & salaries 8,900

Rent expense 7,500

Opening Inventories 5000

Closing inventories 12,500.

Capital at 1 Jan. 2021 80,000

Drawings 25,000

Carriage inwards 4,000

Account receivables & Account payables 27,500 16,000

Bad debts written off 5,000

Other revenue 2,000

Cash at bank 18,950

Bank loan 30,000

300,750 300,750

Add'l info at 31 December 2021:

i.Wages and salaries accrued amount to RM700.

ii. Rent prepaid amounts to RM300.

iii. Bank loan interest of 10 per cent per annum is outstanding.

iv. Provision for doubtful debt for account receivables of 2 per cent is to be made.

v.  Depreciation is to be charged at 2 per cent of cost on the premises and 10 per cent of cost on the plant.

prepare Statement of Comprehensive Income for the year ended 31 December 2021

What would be the treatment of IFRS 9 on receivables considering a company that core operation is granting loans to customers.

on 1st January 2017, Mwanawasa Ltd, had in issue. 800.000 Ordinary shares with a par value of sh 10 each. on 31st october 2017 the company issue 100,000 Ordinary shares at full market Price of Sh 20 cach. on 41st December 2018, the director decided to declare a bonus issue of I for 4 on 31st December 2019, thedirectors decided to declare a a right issue for 1 for 5 at a Price of sh 20. on the day immediately before for right issue took effect, the shares of this company were trading qt sh 25 each. Mwanawasa Itd does not have any preference Share in issue. The Post tax earning for the year 2017, 2018 1 and 2019 were £ 350.000 and € 520.000 and £ 430.000 respectively.

Required

a) compute the Basic EPS for the years 2017, 2018, 2019.

b) comment on the financial Performance of the company in the year 2018 and 2019.

Consider two bonds, HI and LI. The HI bond has a 10% coupon rate and the

LI bond has a 5% coupon rate. Both bonds pay interest annually and are priced to yield

10%. Suppose the following interest scenarios are possible at the point in time when both

bonds have five years remaining to maturity:

Prepare the income statement and balance sheet for the year ending December 31, 20X5 for Company X. The following information is all that is available. Be sure to prepare proper headings and dates on each financial statement.

Owners Equity

$120,000

Land

125,000

Revenue from sales to costumers

750,000

Cash

25,000

Salary expense

235,000

Other revenue

15,000

 Rent expense

115,000

Accounts payable

50,000

Equipment

250,000

Buildings

400,000

Other operating expenses

300,000

Accounts receivable

50,000

Loans payable

125,000

Retained earnings (equity account)

565,000

Other assets

10,000

The following statement of financial position of Kudu CC as at 31 December 2020 2020 2019. ASSETS Non -current assets 220 000 220 000 Current assets 132 000 77 000 352 000 297 000 CAPITAL AND LIABILITIES Members contribution: 180 000 180 000 Beo 70 000 70 000 Reo 50 000 50 000 Teo 60 000 60 000 Retained Earnings 90 000 65 000 Non -Current Liabilities 45 000 45 000 Current Liabilities 37 000 7 000 352 000 297 000. You are required to: 1) Calculate the new members interest and show the statement of changes in net members investment and members interest in each of the following instances separately. a) Beo decided to sell 1/5 of his current interest to Reo. The interest is valued at $25 000 of which $15 000 has been deposited into the bank account of the CC as a loan from Beo, the balance of the amount has been paid to Beo as his own funds. b) The CC buy back the interest of Teo for $50 000

Trial balance of GM as at 31 December 2021 Debit(RM) Credit(RM)

Sales 126,500

Purchases 99,850

Premises (cost) 100,000

Accumulated depreciation at 1 January 2021_Premises 25,000

Plant (cost) 18,000

Accumulated depreciation at 1 January 2021_Plant 2,300

Wages and salaries 8,900

Rent expense 7,500

Closing inventories RM12,500.

Capital at 1 January 2021 80,000

Drawings 25,000

Carriage inwards 4,000

Account receivables and Account payables 27,500 16,000

Bad debts written off 5,000

Other revenue 2,000

Cash at bank 18,950

Bank loan 30,000

300,750 300,750

Additional information at 31 December 2021:

i.Wages and salaries accrued amount to RM700.

ii. Rent prepaid amounts to RM300.

iii. Bank loan interest of 10 per cent per annum is outstanding.

iv. Provision for doubtful debt for account receivables of 2 per cent is to be made.

v.  Depreciation is to be charged at 2 per cent of cost on the premises and 10 per cent of cost on the plant.

prepare Statement of Financial Position as at 31 December 2021

Trial balance of GM as at 31 December 2021 Debit(RM) Credit(RM)

Sales 126,500

Purchases 99,850

Premises (cost) 100,000

Accumulated depreciation at 1 January 2021_Premises 25,000

Plant (cost) 18,000

Accumulated depreciation at 1 January 2021_Plant 2,300

Wages and salaries 8,900

Rent expense 7,500

Closing inventories RM12,500.

Capital at 1 January 2021 80,000

Drawings 25,000

Carriage inwards 4,000

Account receivables and Account payables 27,500 16,000

Bad debts written off 5,000

Other revenue 2,000

Cash at bank 18,950

Bank loan 30,000

300,750 300,750

Additional information at 31 December 2021:

i.Wages and salaries accrued amount to RM700.

ii. Rent prepaid amounts to RM300.

iii. Bank loan interest of 10 per cent per annum is outstanding.

iv. Provision for doubtful debt for account receivables of 2 per cent is to be made.

v.  Depreciation is to be charged at 2 per cent of cost on the premises and 10 per cent of cost on the plant.

prepare Statement of Comprehensive Income for the year ended 31 December 2021