Accounting Answers

Statement of Changes in Equity

Problem 1: Sole Proprietorship

On February 15,20x1, Evelyn Ferrer opened Cookie Fantasy Bakeshop. She invested 75,000 to purchase an oven and bakery supplies. The business generated a net income of 37,545 in 20x1. Moreover, Evelyn used 15,000 from account of Cookie Fantasy to pay the electricity and phone bills of her house.

Evelyn invested an additional 13,400 and 17,650 on March 16, 20x2 and August 19, 20x2, respectively. Net income for 20x2 was reported at 48,950. Evelyn's Drawings account has a balance of 20000 on December 31, 20<2.

Required: Prepare Cookie Fantasy Bakeshop's Statement of Changes in Equity for the year ended December 31, and December 31, see format below

Balance, January 1,20x1

Balance, December 31, 20x1

Balance, December 31,20x2

:
Members’ % Interest Contributions
Barry Behr 50% R500 000 (cash and equipment)
Doris Daniels 40% R400 000 (cash)
Mo Mgotso 10% R100 000 (cash)
The following balances, amongst others, appeared in the CC’s books at the end of the current
financial year, 31 July 2020:
Members contributions R1 000 000
Retained Earnings (1 August 2019) R236 000

With regards to the financial year ending 31 July 2020, the following information was available:
1. On 31 July 2020, the CC recorded a profit of R940 000. This profit was after taking into
account transactions with members like remuneration.
2. The income tax for the year is calculated at R260 000.
3. The members are entitled to a distribution of profit of R45 000 each, irrespective of how
long they have been a member.
Required:
Open, post to and balance the Appropriation Account for the year ended
31 July 2020.

The total revenues is 1,200,00 its expenses is 150,000 what is the net income?

Prepare Income Statement with following data.

1) Net Income for the year Rs. 1.2 Million

2) Rate of Income 0.1 time of the sales

3) Gross profit 0.4 time of sales

4) Marketing Expense 10% of sales

5) 7% bonds payable represent 37.5% of total liabilities Rs. 2 Million.

you purchased 10 shares of L&T company last year.on 5th march 2019,the company has declared a devidend Rs 50 Per share.The income is earned but not yet collected in your account during this financial year......5 Mark value ......assignment

You recently accepted an assignment with Oxford Limited as a financial consultant. One of your first
assignments is the analysis of two proposed capital investment projects. Details of initial investments,
after-tax cash flows and average annual profits are represented below:
Year After-tax Cash flows
Initial investments
Cash flows
Average annual profits
1
2
3
4
Project A Project B
(R50 000)
R26 200
R12 200
R12 200
R5 000
R1 400
(R50 000)
R14 200
R14 200
R14 200
R14 200
R1 700
2.1. Which project has a shorter payback period? Motivate your answer by doing the relevant
calculations (answers expressed in years, months, and days).

Nancy buys a pair of jeans from HJ Jeans for R175.00, the pair is discounted by 20%. What is the discount amount?

Calculate the amount payable to the landlord from the following data:
Royalty :Re.1per ton of coal easier
Minimum rent: 1999:10000
2000:15000
2001:20000
2002:25000
Output in tons:1999:5000
2000:8000
2001:30000
2002:30000
Shortworkings are recoverable only out of excess royalties in the next year but not later

Edward Smith, an Australian resident individual, received the following cash dividends:

• $246,720 (franked to 50%) from XYZ Ltd on 1 February 2019;

• $14,000 (unfranked) from ABC Ltd on 1 March 2019;

• $4,900 (fully franked) from DEF Ltd on 1 May 2019

Required:

What is his assessable income (rounded to the nearest dollar)?