Financial Accounting class
Question No. 1 (6 Marks)
The major classifications of activities reported inthe statement of cash flows are Operating (O), Investing (I), and Financing (F). Classify each of the transactions listedbelow as:
1. Operating activityadd to net income.
2. Operating activitydeduct from net income.
3. Investing activity.
4. Financing activity.
5. Reported as significant non-cash activity in the notes to the financial statements.
The transactions are as follows.
Transactions
Activity (O, I, F)
ADD or LESS + or –
Issuance of ordinary shares.
Purchase of land and building,
Redemption of bonds,
Sale of equipment
Depreciation of machinery.
Issuance of bonds for plant assets,
Payment of cash dividends,
Exchange of furniture for office equipment.
Purchase of treasury shares.
Loss on sale of equipment.
Increase in accounts receivables during the year,
Decrease in accounts payable during the year.
Question No. 2: (9 Marks)
Abbey INC.
Balance Sheet
Assets
Dec. 31, 2010
Jan. 1, 2010
Inc./Dec.
Equipment
$39,000
$22,000
$17,000 Inc.
Less: Accumulated depreciation
-17,000
$ (11,000)
6,000 Inc.
Accounts receivable
91000
88,000
3,000 Inc.
Cash
45,000
13,000
32,000 Inc.
Total
$158,000
$112,000
Equity and Liabilities
Share capitalordinary
100000
$80,000
20,000 Inc.
Retained earnings
38,000
17,000
21 ,OOO Inc.
Accounts payable
20,000
15,000
5,000 Inc.
Total
$158,000
$112,000
Net Income of $34000 was reported and Dividend of $13000 were paid in 2010. New Equipment was purchased and none was sold.
Requirement:
Prepare Statement of Cash Flow for the year 2010.
Question No. 3: (10 Marks)
A Comparative Statement of Financial Position for Vivaldi Corporation is given below;
Dec-31
Assets
2010
2009
Land
$71,000
$110,000
Equipment
270,000
200,000
Accumulated depreciationequipment
-69,000
-42,000
Inventories
180,000
189,000
Accounts receivable
82000
66,000
Cash
63,000
22,000
Total
$597,000
$545,000
Equity and Liabilities
Share capitalordinary ($1 par)
$214,000
$164,000
Retained earnings
199,000
134,000
Bonds payable
150,000
200,000
Accounts payable
34,000
47000
Total
$597,000
$545,000
Additional Information
1. Net Income for 2010 was $105000
2. Cash Dividend of $40000 were declared and paid
3. Bonds payable amounting to $50000 were retired.
Requirement:
Prepare Statement of Cash Flow for the year 2010.
Question No. 4: (5 Marks)
Smart Co Sales made on credit. On July 1, 2018 it made sales of $60 000 with the term 3/10, n/30. On July 9, 2018 Smart Co received $30000 payment for July 1 sales. Remaining Payment received by smart Co on 15th July, 2018.
Requirement:
Record the Journal Transaction with discount amount with Gross Method and Net Method
———-END OF TASK-3———-
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Home>Business & Finance homework help>Accounting homework help>Financial Accounting class
Question No. 1 (6 Marks)
The major classifications of activities reported inthe statement of cash flows are Operating (O), Investing (I), and Financing (F). Classify each of the transactions listedbelow as:
1. Operating activityadd to net income.
2. Operating activitydeduct from net income.
3. Investing activity.
4. Financing activity.
5. Reported as significant non-cash activity in the notes to the financial statements.
The transactions are as follows.
Transactions
Activity (O, I, F)
ADD or LESS + or –
Issuance of ordinary shares.
Purchase of land and building,
Redemption of bonds,
Sale of equipment
Depreciation of machinery.
Issuance of bonds for plant assets,
Payment of cash dividends,
Exchange of furniture for office equipment.
Purchase of treasury shares.
Loss on sale of equipment.
Increase in accounts receivables during the year,
Decrease in accounts payable during the year.
Question No. 2: (9 Marks)
Abbey INC.
Balance Sheet
Assets
Dec. 31, 2010
Jan. 1, 2010
Inc./Dec.
Equipment
$39,000
$22,000
$17,000 Inc.
Less: Accumulated depreciation
-17,000
$ (11,000)
6,000 Inc.
Accounts receivable
91000
88,000
3,000 Inc.
Cash
45,000
13,000
32,000 Inc.
Total
$158,000
$112,000
Equity and Liabilities
Share capitalordinary
100000
$80,000
20,000 Inc.
Retained earnings
38,000
17,000
21 ,OOO Inc.
Accounts payable
20,000
15,000
5,000 Inc.
Total
$158,000
$112,000
Net Income of $34000 was reported and Dividend of $13000 were paid in 2010. New Equipment was purchased and none was sold.
Requirement:
Prepare Statement of Cash Flow for the year 2010.
Question No. 3: (10 Marks)
A Comparative Statement of Financial Position for Vivaldi Corporation is given below;
Dec-31
Assets
2010
2009
Land
$71,000
$110,000
Equipment
270,000
200,000
Accumulated depreciationequipment
-69,000
-42,000
Inventories
180,000
189,000
Accounts receivable
82000
66,000
Cash
63,000
22,000
Total
$597,000
$545,000
Equity and Liabilities
Share capitalordinary ($1 par)
$214,000
$164,000
Retained earnings
199,000
134,000
Bonds payable
150,000
200,000
Accounts payable
34,000
47000
Total
$597,000
$545,000
Additional Information
1. Net Income for 2010 was $105000
2. Cash Dividend of $40000 were declared and paid
3. Bonds payable amounting to $50000 were retired.
Requirement:
Prepare Statement of Cash Flow for the year 2010.
Question No. 4: (5 Marks)
Smart Co Sales made on credit. On July 1, 2018 it made sales of $60 000 with the term 3/10, n/30. On July 9, 2018 Smart Co received $30000 payment for July 1 sales. Remaining Payment received by smart Co on 15th July, 2018.
Requirement:
Record the Journal Transaction with discount amount with Gross Method and Net Method
———-END OF TASK-3———-
1
1
Applied Sciences
Architecture and Design
Biology
Business & Finance
Chemistry
Computer Science
Geography
Geology
Education
Engineering
English
Environmental science
Spanish
Government
History
Human Resource Management
Information Systems
Law
Literature
Mathematics
Nursing
Physics
Political Science
Psychology
Reading
Science
Social Science
Home
Blog
Archive
Essay
Reviews
Contact
google+twitterfacebook
Copyright © 2019 HomeworkMarket.com
