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In a business combination, is it possible to acquire control to another entity/company without giving any consideration? If yes, how come it is possible?
On 31 December 2017, Betty Trading showed the following details of accounts: On 1 January 2016, Betty purchased motor vehicle (A), RM30,500 by cash. On 1 January 2017, Betty bought another motor vehicle (B) RM22,000 by cheque. The company uses the straight line method at the rate of 10% per annum on cost in order to depreciate their non- current assets. On 31 December 2018, motor vehicle (A), which was bought on 1 January 2016 was sold cash for RM19,500. a) You are required to prepare the ledger accounts as follows for 2016, 2017 and 2018: i) Motor vehicle account [5 marks] ii) Accumulated Provision for depreciation motor vehicle account [7 marks] b) Prepare motor vehicle disposal account [5 marks] c) Identify THREE (3) causes of depreciation on the non-current assets.
The market price of the ordinary shares at 31 December 2020 was Rs1.60. The dividend yield on ordinary shares was 2 per cent. The creditor for taxation at 31 December 2019 was Rs25 000. Taxation paid in the year ended 31 December 2020 amounted to Rs22 000. The liability for taxation on the profit of the year ended 31 December 2020 is Rs31 000 and is carried forward on the Taxation account. The retained profit for the year ended 31 December 2020 was Rs60 000. The debentures were issued in 2016. The preference shares were issued at par.
The summarized Balance Sheet at 31 December 2020 of Iqra Ltd was as: Fixed assets 2550000, Net current assets 950000, 6% debentures 2019/2020 150000, Ordinary shares of Rs1, 2500000, 10% redeemable preference shares of Rs1, 300000, Share Premium account 200000 Profit and Loss Account 350000.
REQUIRED Prepare IqraLtd’s Profit and Loss Account for the year ended 31 December 2020 in as much detail as possible. The Profit and Loss Account should commence with the operating profit.
treasurer of MMU Accountants’ Club has produced the following receipts and payments
account for the year ended 31st December 2018.
Receipts Kes Payments Kes
Balance at bank 1 January 2018 195,000 Payments for refreshment supplies 216,000
Subscriptions received 2,253,000 Wages of attendants and cleaners 1,570,000
Profits from dances 205,800 Rent of building 435,000
Profit on exhibition 44,500 New equipment bought 910,000
Sales of Refreshments 814,500 Traveling expenses of teams 95,000
Sale of equipment 17,000 Balance at bank 31st December 2018 303,800
3,529,800 3,529,800
Additional information:
(i) Refreshment stocks were valued: 31st December 2017 Kes 34,000; 31st December 2018
Kes 46,000. Owing for refreshment stocks on these dates were Kes 5,000 and Kes 78,000
respectively.
(ii) On 1st January 2018, the club’s equipment was valued at Kes 1,620,000. Included in this
figure, valued at Kes 21,000, was the equipment sold during the year for Kes 17,000.
(iii) The amount to be charged for depreciation of equipment for the year is Kes 260,000. The
club’s policy is not to charge depreciation on equipment on the year of disposal.
(iv) Subscriptions owing by members at 31st December 2018 Kes 31,500; at 31st December
2018 Kes 43,000
(v) Kes 234,000 of the wages expenses and 10% of the rent expenses relate to the
refreshment account
Required:
i) Refreshment income statement for the year ended 31st December 2018 (4 marks)
ii) Income and Expenditure statement (statement of comprehensive income) for the year
ended 31st December 2018 (9 marks)
iii) Statement of financial position as at 31st December 2018 (7 mar
The treasurer of the Plumpton leisure centre has produced the following receipts and payment for year ended 31 December 2019
Receipts
Balance at bank 1 January 2019 $3900
Subscription received profits from dances $45060
Profits from exhibitions $890
Profits on dances $4116
Refreshment takings $16290
Sale of equipment $340
Tottal $70596
Payments
Refreshment supplies bought $4320
Wages of attendant and cleaner $31400
Rent of building $8700
New equipment bought $18200
Travelling expenses of teams $1500
Balance at bank 31st December 2019 $6076
Tottal $70596
Notes
1. Refreshment stock were valued 31st December 2018 : $680, 31st December 2019 $920
There was nothing owing for refreshments stock as at these dates.
2. On January 2019, the club's equipment was valued at $32400. Includedin this figure valuede at 420
Was the equipment sold during the year for $340
3. The amount to be charged for depreciation of equipment for the year is $5200. This is in addition to the loss on equipment sold during the year
4. Subscriptions owing by members at 31st December 2019 is $860
Required
Draw up refreshment trading account and charge $4680 of wages to this account and the remainder to the income and expenditure account
Calculate the accumulated fund as at 1st January 2019
Draw the income and expenditure account and a balance sheet as at 31 December 2019
Problem 4-1- Transactions and Related Adjusting Entries Pete's Parasailing takes tourists on parasailing rides over South Beach in Miami, Florida. Parasailing tickets sell for $100 per customer. The company adjusts its accounts at the end of each year. Below are selected transactions from the year 20x5. Purchased a used boat for $56.000 cash. Estimated useful life of the boat is 5 years. Estimated salvage value $0. Jan. 1 Purchased office supplies from Best Buy Supplies Company for $800 cash. On December 31, $540 of these supplies has been used. Feb. 2 The company paid $18.000 for a one-year liability insurance policy with Florida Insurance Company. Apr. 1 A one year bank loan in the amount of $42,000 was obtained. Interest is to be computed at an annual rate of 8% and is payable when the loan becomes due on September 1. 20x6. Sept. 1 Received cash for 50 tickets sold for future rides through local hotels. On December 31, 40 of these tickets had been used by customers. Dec. 1 Dec. 31 Salaries earned by employees that have not yet been paid amount to $800. Unrecorded Income Tax Expense acerued on December 31 is $2.200. This amount will not be paid until January 15. 20x6. Dec. 31 Instructions For each of the above transactions record the appropriate journal entry and its related adjusting entry on December 31. 20x5. Be sure to include an explanation.
A firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust the amount of capital it is using, but it can adjust the size of its workforce. What happens to the firm’s average total cost curve, the average variable cost curve, and marginal cost curve when
a. the cost of renting capital increases?
b. the cost of hiring labor increases?
Diana leases out German sports cars. She started business on 1st Jan 2010 and has decided to depreciate the cars on a straight line bases at 25% per annum on cost at the year end. During the year 2010 to 2013 the following purchases took place.
2010 Acquired 20 Porsche 924 turbos at a cost of Rs. 18,600,000 each.
2011 Purchased 6 Porsches for a total cost of Rs. 108,600,000.
2012 Purchased a further 2 cars costing Rs. 19,800,000 each.
2013 Purchased 15 cars for Rs. 21,000,000 each.
Diana prepares account to 31st Dec each year.
Required:
Prepare a vehicle account and accumulated depreciation account and a depreciation account for the years 2010 to 2013.
How to record accrued expense?
Compute for the net income
The playdate kiddiegym is owned and managed by cris roxas.The balance of the Cris Roxas ,Capital is P765,430 and P857,340 on December 31, 20X1 and December 31,20X2, respectively.Net income for 20X2 is P115,465.Cr Compute is did not make additional contribution to the business in 20X2.Determine the balance of the Cris Roxas Drawings account on December 31,20X2
