Economics Answers

4. If the normal operating cycle is 8 months to August 30, 2023, and the 12 months after the reporting period will jump to the date of December 31, 2023, when is the threshold of

proving that the asset or liability is current? (Pick between August 30, 2023, and December 31, 2023,) Explain your position.

3. Define an Unearned Revenue and discuss why this account is not yet a revenue.

1. Which of the following attributes will classify an item which can be seen as a liability in

the Statement of Financial Position?

a. Expenses paid before the actual utilization

B. Expenses already utilized and paid for.

c. Expenses already utilized but have not yet paid for

D. All expenses cannot be classified as a liability component

1. 1 July 2013 N. Nicols deposited R60 000 into the bank account of the business as capital.

2. 3 July 2013: She bought a second- hand removal van on credit from M Davids for R 100 000

3. 3 July 2013: Filled the removal van with petrol and paid cash, R700.

4. 4 July 2013: Placed an advertisement in the Peace News for R350 on credit.

5. 4 July 2013: Paid his personal telephone account of R470 for June 2013 with a business cheque.

6. 7 July 2013: Obtained a loan from Learners Bank for R20 000.

7. 10 July 2013: Transported furniture for D Dennis on credit R2 000.

8. 14 July 2013: She transferred personal equipment to the value of R10 000 to the business.

9. 17 July 2013: Paid R20 000 to M Davids as payment on the removal Van.

10. 18 July 2013: Bought a computer for R5 000 from Movement Ltd and paid by cheque.

11. 22 July 2013: Received R800 from B Bonolo for the transport of equipment

REQUIRED:

Prepare the General Ledger of N. Nicols for the year ended July 2013

What is the ASI dataset? Why one should use this dataset?

How does the PIPE model of design thinking promote collaboration and contribute to innovation?

B. Statement of Comprehensive Income (10 points)

Directions: Construct and improvise a Statement of Comprehensive Income using the following format and calculated values:

The Mirriam Company has the following SCI balances at the end of the year. Prepare an

SCI which contains the determination of net income and comprehensive income for the period.

Gross Profit = ₱ 2,580,750

Operating Profit = ₱ 1,554,330

Income Tax Expense = 25% of Operating Profit

Comprehensive Income = ₱ 2,000,000

Statement of Financial Position

Directions: Improvise a Statement of Financial Position based from the given accounts below in

ACCOUNT FORM.

The Gelo Corporation has the following balances provided for the year 2020:

TOTAL ASSETS = ₱ 3,500,000

TOTAL LIABILITIES = 2,400,000

TOTAL CURRENT ASSETS = ₱ 2,350,000

TOTAL CURRENT LIABILITIES = ₱ 2,400,000

Accounts Receivable

Notes Payable

Unearned Revenue

Income Tax Payable

Comprehensive Income

Building

Land

Intangible Assets

Noncurrent Receivables

Owner’s Capital

Owner’s Withdrawal

Salaries Payable

Prepaid Expenses

Inventories

Interest Payable

Notes Receivable