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Compile the bank reconciliation statement as at the 31 May 2020
During the 2022 year there was a good rainy season and a bumper coffee bean crop yield.
The usage of the machine has improved and is estimated to continue to improve in the years to come. As such, on 31 December 2022 management have revised the remaining useful life to eight years. They have calculated the value in use to be R1 360 000. The market price is R1 850 000 with costs of R15 000.
Calculate the value of the impairment loss reversal, if any, for the year ended31 December 2022.
You can assume that the recoverable amount does not exceed what the carrying value would have been had there been no impairment loss.
Which one of the following is not a recommended qualitative characteristic that the accounting policies and financial statements of companies should have?
Select one:
a. Comparability
b. Reliability
c. Relevance
d. Probability
1. Supplies on hand at the end of month Rs.1000
2. Depreciation expense for the month of December Rs. 850
3. salaries are due for the month Rs.15000
4. Unearned client fee earned during the month Rs.5000
5. Prepaid Insurance expired during the month Rs. 2500
6. Client Fee Revenue earned but not received Rs.7600
Statement of comprehensive income for the year ended 28 Feb 2019
. revenue from sales R1 040 900
.cost of sales (R656 300)
.gross profit R384 600
.operating expenses (R193 200)
.Finance cost (R37 600)
.Profit before tax R153 800
.Income tax expense (R34 200)
.Profit for the period R119 600
.Other comprehensive income -
.Total comprehensive income R119 600
Required:
1.1 Statement of financial position for ABC 28 Feb 2019
1.2 notes to the statement of financial position, specifically the property,plant and equipment note
Wright Industries needs to raise capital for a factory expansion. The board of directors has just concluded negotiations with an underwriter to issue $2,500,000 of 8%, 15-year callable bonds dated June 30, 2020, with interest payment dates of December 31 and June 30. The bonds are issued on June 30, 2020, at 102.5 when market rate is at 7.5%. Wright's year-end is December 31 and effective interest rate amortization is to be used.
Prepare (1) the sales entry of this bond at June 30 2020 (6 marks) and (2) the first bond interest payment entry at Dec 31, 2020 using effective-interest method of amortization.
Prepare Adjusting entries of the following transactions:-
1. Supplies on hand at the end of month Rs.1000
2. Depreciation expense for the month of December Rs. 850
3. salaries are due for the month Rs.15000
