Accounting Answers

create a cash flow statement assuming that the coronavirus will close all of nathan’s restaurants, and revenues falls to zero.

Explain the factors that determine the classification of redeemable preference shares as either an equity or liability?(5marks)

Aryani started a fashion boutique on 1 March 20-6. On that date she purchased stationery $395. During a year she took stationery, $15 for her own uses. On 28 February 20-7 the stationery was valued. At $174. Which amount was charged to the income for the year ended 28 February 20-7 for stationery 

The controller of Pane Co. was preparing the company's financial statements. Pane had a

wholly owned subsidiary in a foreign country that used the euro as its currency. At December

31, the exchange rate was $1 U.S. for 1.25 euro. The weighted-average exchange rate for the

year was $1 U.S. for 1.50 euro. At December 31, the subsidiary had assets of 1 million euro and

revenue for the year of 2 million euro. What amounts would assets and revenue translate for

consolidation?

Assets Revenue

A. $666,666 $1,333,333

B. $666,666 $1,600,000

C. $800,000 $1,333,333

D. $800,000 $1,600,000

On January 1, year 1, a company has capitalized software costs of $1,200,000 related to

software that it intends to begin selling in year 1. The company estimates that the software has

an economic life of four years, and will generate $3,000,000 of sales and leasing revenue over

the next four years. In year 1, the company earned $1,000,000 in sales and leasing revenue

related to the software. What amount of expense should be recognized from amortizing the

software costs for the year ended December 31, year 1?

A. $300,000

B. $350,000

C. $400,000

D. $1,200,000

A company has 10,000 shares of common stock issued and 2,000 shares of treasury stock. The

par value of the stock is $10 per share. On January 1, year 1, the company declared a 5%

dividend to be paid in cash on June 30, year 1. What journal entry should the company record

on the declaration date?

A. Debit retained earnings for $4,000 and credit dividends payable for $4,000.

B. Debit dividends expense for $4,000 and credit dividends payable for $4,000.

C. Debit dividends expense for $5,000 and credit dividends payable for $5,000.

D. Debit retained earnings for $5,000 and credit dividends payable for $5,000.

A subsistence allowance paid to a partner is recorded by

Analyze the annual reports of Flour Mills of Fiji (2020), RB Patel Ltd (2020) and Paradise Beverages Ltd (2019) from South Pacific Stock Exchange (SPSE) and answer the following questions. 1. Calculate the share value using Dividend Growth Model, assuming dividend will grow 2% for Flour Mills of Fiji, 5% for RB Patel Ltd and 8% for Paradise Beverages constantly for the companies on their respective base year. 2. Calculate the Earnings Per Share (EPS) and the Market Capitalization for each of the companies. 3. Comment on the share value of the companies given the Dividend Growth Model (Question 1) and EPS (Question 2)

At the beginning of the year, Stam Co. had 200,000 shares of common stock issued and

outstanding. On March 31, the company issued 40,000 additional shares. On July 1, it declared

and distributed a 50% stock dividend and on September 30 repurchased 10,000 shares as

treasury stock. What amount of shares should Stam use to calculate basic earnings per share?

A. 287,500

B. 342,500

C. 345,000

D. 360,000

The following information is from Mabel Co.’s year-end financial statements for the current and

previous years:

Current year

• Prepaid Expenses = $10,000
• Accounts Payable = 50,000
• Land = 250,000

Previous year

• Prepaid Expenses = $20,000
• Accounts Payable = 30,000
• Land = 600,000

Land was sold during the current fiscal year for cash resulting in a loss of $40,000. What is

Mabel’s net adjustment to net income to determine net cash from operating activities?

A. ($70,000)

B. $0

C. $30,000

D. $70,000