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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 3% for Flour Mills of Fiji, 6% for RB Patel Ltd and 9% 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).
Debit Intercompany Cost of Goods Sold
Credit Inventory
Debit COGS
Credit Inventory
Are these two journal entries the same thing? (The First Journal is based on the Intercompany Transactions Chapter.) Thank you.
Debit Cash
Credit Investment in Investee
- What does this journal entry mean? Are you receiving cash because you sold the investment.
Please correct me my statement if its needed to be corrected. Thank you.
Debit Cash
Credit Dividend Income
- What is this journal entry mean? You are receiving cash and receiving revenue.
Debit Investment in Investee
Credit Equity in earnings
- What is this journal entry mean? You purchase investment and a sale occurs at the same time.
Debit Cash
Credit Investment
Credit Dividend Income
- What does this journal entry mean? You sold the investment and received cash in that investment. How does Dividend Income come into play?
Debit Equity in Earnings
Credit Investment in Investee
- What does this journal entry mean?
Debit Accounts Receivable
Credit Sales Revenue
- What does this journal entry mean? You sold services/product and you haven't received the money yet.
- For example, a company sells $5,000 of consulting services to a customer on credit. So, you sold the consulting services, but you haven't received the money yet. Your Asset Account Increases and your Revenue Account increases.
What does it mean when you Debit a Revenue Account?
Khalid recently invested $80,000 of your savings in a security issued by a large company. The security agreement pays you 12% per year and has a maturity 3years from the day you purchased it. What is the total cash flow Khalid expect to receive from this investment after 3 years?
Record the transactions in General Journal.
“ 21 Paid its liabilities for the purchase of equipment
“ 24 Recorded sales on account Birr 2,080
“ 26 Received an invoice for truck expense Birr 115
“ 27 Paid utilities expense Birr 205.
“ 27 Paid miscellaneous expenses Birr 73.
“ 28 Received cash from customers on account birr 1,420
“ 30 Paid salaries to employees Birr 950
“ 30. The owner withdrew Birr 1, 750 for personal use.
Legal Services Company Ltd. was formed on July 1, 2017. During the first month of
operations, the following transactions occurred.
1. Shareholders invested $10,000,000 in cash in exchange for ordinary shares of
Legal Services Company Ltd.
2. Paid $800,000 for July rent on office space.
3. Purchased office equipment on account $3,000,000.
4. Performed legal services for clients for cash $1,500,000.
5. Borrowed $700,000 cash from a bank on a note payable.
6. Performed legal services for client on account $2,000,000.
7. Paid monthly expenses: salaries $500,000, utilities $300,000, and advertising
$100,000.
Instructions
(a) Prepare a tabular summary of the transactions.
(b) Prepare the income statement, retained earnings statement, and statement of
financial position at July 31 for Legal Services Company Ltd
Debit Prepaid Rent
Credit Cash
- What is the purpose of this journal entry? Like what is a good title for this journal entry. Thank you.
Debit Rent Expense
Credit Prepaid Rent
- This journal entry is the same exact thing as Debit Insurance Expense and Credit Prepaid Insurance. Right?
Rent Expense increase because its an expense and Prepaid Rent is an asset and that decreases. So, you purchase rent expense and prepaid rent is acting like cash because you are paying for it. Is this statement correct?
Can you provide me a practice question or an example that I can calculate accrual basis to cash basis? Thank you.
Control Accounts and Incomplete Records
Bank
Balance b/d 40,000 Payments to suppliers 492,020
Cash sales 170,000 Cash purchases 32,500
Receipts from debtors 458,560 Rent 57,500
Motor vehicle 300,000 Fixtures 220,000
Bank interest 2,500 Rates 8,500
Commission 73,000 Wages 66,000
Balance c/d 53,960 General office expenses 11,500
Loan 78,000
Drawings 132,000
Total 1,098,020 1,098,020
List of balances:
Details Jan 1 Dec 31
Creditors 83,200 91,030
Debtors 94,500 82,400
Stock 75,500 95,600
Loan 194,000 116,000
Building 340,000 340,000
Motor vehicle 720,000 400,000
Fixtures 0 210,000
Rates prepaid 4,600 7,600
Commission owing 21,500 25,000
Wages owing 14,500 22,000
Additional notes:
Stock taken for personal use $9,500
Bad debt written off $8,500
Discounts allowed $3,400
motor vehicle sale was at net book value
REQUIRED:
the trial balance, statement of profit or loss, and
statement of financial position for New day Traders for the period( include all workings for the statement of affairs and control accounts please
