Financial Accounting Problems

SINNAH UNIVERSITY FOR WOMEN

DEPARTMENT OF COMMERCE

ASSIGNM

NAME
WAJIHA MUHAMMAD ISMAIL

DEGREE PROGRAM
BS-COMMERCE (I)

SUBJECT
FINANCIAL ACCOUNTING
(ACC-3061)

SUBMISSION DATE
June 30, 2021

SUBMITTED TO

MISS MEHAR AFROZ

li béb. Tue y
BY dc. False, because 7
4 practices, a bustien and i ovone
A event businen ne-Cls-etuner- entilies -
A business enlib & à & Dares
m4 unit whose harcactions ae kept sepaole
q kom thal of th owner
d.fahe, because organization of &
Corporation raquis he poral Approved 6)
a, skate, Thus fo individuals cannot form

accounting Jhrery aod
Ae

A corpsvation meuly by an aval agreement -
+ True, P 4 y T |

f True
Fale, became each individual partner Com

shaswprofict. ded loss: ba aif redilewnine y

manner or Acer ng 4, thee ntarests

Jue

ru] nal Account.
st se and la

fa

Both
u Sac do account
Ale studio account

took slüdio Acad

|

Viactailin Y held

Als Ir dores account
[equis le

(prime banzacten,
cled, no historica]
OM ; Mo tiamacten held

i Pols A teng $ per UT account ancl breck s

r account «
Ques a

a D, ”
A FARLOR

mem ET Zaun.
ah | 4000. Ale pagabíe
LP of MES hot bank =
fe Recetveable | 8000 [Ca al ste Soroco
Foy pret | 8rcco lRet En 20
funds. [SS 000 | ie |
8Sj000| VL GE L 86000

b. dine 1, Cash balance UP
payment to Ki evo)
cad loan nec dex) 11000

Equipment puschast, = (60)
Tune 30, Cash baleace 5,4100

Tune 1, Invedory of food balance 101m
Additional inventor. iy patch ¡Sen IS
soft daink purchas 100
June, 30, Inventory y ford balance. Tue

AuFREDOS Pizza PARLOUR
BALANLE SHEET
As OW June 30,19% tie
_ eo ae 2)
Cash a 540 De S600
Inventor, of fore] Uy ‚600 IN ren Sı000
Loro fecevalie. 4,000 pital stock... SorooQ>
Fonaprest 360 Rtaidlani Moo
Restiraunt furritiae 6100 | E
Total Ass Burro | [Total lanbilities € lo
| Eguliis

anh Paget Balance

Grr
monl ty Supplión (a6)
uf lona! fir] Do hase SD
soft clink Purchased [2
Fre 301 Aceousl pujeblsbalaore . ker
Jul
ho balanie th ‚stock holder o ih account
c: vias mob changed became there thn cha 7°
¿capital stick and Antamıd e Carnie ac 7
Een This, une of Banacteen efect:
E ÚnComa

Sn # he ae CORPORATION
INCOME STATEMENT

foe THe P
Revenues:

Reventse ET
Service Revenue | 555000
Total Revenue (080,000)
West of ads sold les |
In ri

Repas and maint enante E
Eh enadling expense
Ecuraño before Tires (EBT)
less: Tax expense

Eng of « Taxes (EAT)
a
mi A

| 501000

~ Retained Eau
dd: Net Tome”

“AI the salas du: the, tol au Accor"
43 nèvenue dad ‘poled un tome stalement
either coletas) oy not collected var cash fem.

C- Yes, ding the period à An SES

£ama met intone ih net agelt tncreases
and duet Aa st vesoures ea.

Seco to be nda à
y ho amount Sc is et
is john $
in be balaste, sheet o stores acta
y Tho delivery Auck& und do tre bustnen and
ral ve go that it ded vi
eh of stor unt Likewise the
anced throu 4h bank doo , the Aema:
a owe to the bank (10,000-2000)= &
shold also include in shores account -
u Personal resiclences and it mortgage on how &
ca, & ch km à mot Lead u the tall,

of stoe acewunt-Tts s poral, red ma
- Jo A

a € unes.

Cask (aseo-loo) | {eo Diem able, | Sa
adult | Ber Bank (ros) | en
Tweety: |

Stove, suppl ¡So

Cha hoon, Equity

Ts T
Quipmnent | tome

Truck | 10000

“Total Ase [Sc | Hal linbdiieh

Equilies
& Ques # 1-6
a OcRA CORPORATION
Income STATEMENT
FoR THe PERIOD Ene DEC 31, 198%
Revenue
Commis sun earned [205
Interest earned taco
Total Revenue,
les: Operating Ex
Total opening cer (240,000)
Nek Income _ a Glas

301,000

a OcRA CORPORATION
Statement Or Changes Lu Cash Position
__ For ‘ue Perico Enden Dec. 41,904
Sources of cash |
Bom operations: Unftas)
Cash Revenuies Comission ( ER) Ban |
Inlixest rcceded
Less: choper Enen-ins) | | es SI
Cash pam pe naktons 1308

ART

Uno € ck

Teuanuof Ca 4 Ice

random Lota bank

Total sources A “Cast

(uo ep cad (outftaco)
achat Oy cuss 4 126000
ument of Cittclentd 10,000

pra rm soo

Gore

[Goyer

(1801000)

Net Uncizases In cash 40,800
Cash bal. (open) =
Cash bal (Close) _ | 40, Row

be stakment of changes Un financial poten
have much ınlermatten As from tntome statement 5
hom where fhe cai porcttion A” gett ica cash: & how the
ose tt. 7, théxparticiler problem; tho toy poraltans ©
cher yesos ces such as Ihe jisuantece of capital
cick of 100/000 and the bank Ivan Bojan amet
axe nat he elem ent of Live statement to le posted
like wusthe corpovalien wer df-cash , such as
ioher of various demo of property „plant &
equipment Do purchax, tom investit
ee 2 due lend are alo notthe elemank

Untome, ler

ues FT Zu Oca

INCOME STATEMENT

Ra The Ven ine Dec 31.1987 _
Revenues |
omisión earned | pson |
Less: Expenses
Yaripus operating pere |10S1oco |
Interest open | c00.
Total eperctting- expenses (106/08
EBT ia 4 = Ta >
Less: Taxes
ERT med Vator 7

+ suites
TATEMENT TRAINED CAR NIN
ke 7 Pi oo ENDED DEC 34, Ma _
Retained amg (oper) -
Add: Net Income [reco
Less: Dividend (51000)

|
|
|

Retained Taning (close..) [24000

“dan Our
BALANCE SHEET
As On Dec 31, 1984

ae UABILITIES & LQuinEs
nent Mech: Corment-Linbilitess
Casta) Bro np
E pyfrcc(t2Seoo-HOrced)) 1.600 Ban
fred Asch: Tntevest pay 1000
land Soreco Te tabl IS: 000
Building Icorobo Equity: 2
Fans Boites) 207000 dls
Total Assets

{: lite) | Sy

(C0050

200 /000
463/008. Retained fancy | temo

MES Ip lal liabtegúl, Ugo
Jan Ocur POSITION

STATEMENT OF CHANGES In Financial

FoR THE PERIOD ENDED Dec 34,1964 _
Sources of Cash |

D From i | |
Commission Aena 110,000 |

Less: Cash Expense (105102042000) lines)
Cash From operation

2) hora other Sources: | |
Tstaas of capital stock | Soqx00 |
Bank pain pa | leo1oco

3,000

Total cash infla famdhe toca Leoyoao
|

Tssuane, of

ae
Cash

Use of ca + “outflow
xe of axel (land) £0000.
ax of assebl buileling) 100000
Tunis & fotuues

balance E ES

orto
dividends

Total wies of cash

— 30 00)
“168,000

cash

Cask balance, (endins

forts

Truestrret € oltei audi

| (at

1681000 |

Short teu veste 13820

IPecsunt Riyabe- 10,582
CES Toon y € BS NES

rete) 19,5
Par fi bte ? A

Perou ecetyahte.
Fred Assets

Property plat equip, 534,414 |

651124 pete =p yet ng tur
tal baited 355,8 ra
[Cap (Stick, aux
462):

Question #13 _

Ouympic. CORPORATION —
STATEMENT Dr CHANGES In Finnen,
for The Yenm ENDED DEC 31, 187

Sources of Cash:
From Operations ı Revenue Inflow

Cash Revenue Biol)
Less: Cash expenses | (11101006)

Cash [sam cporatiens Cor
From Othe Geet : nr

Tan of moto py
TIssunnee, 3 capital ticks 1001000

Cash caltob from other sauces |_Soy000
Thal Sauces of Cash 10/000
Uses of cash's (Outftes)
Auchax of assets” | or
Tssuance vfs clinidend 1900:
Tolal use of cash ~ (121000).
Net únorease Un cash, 30000
Cosh balance, penas |

Gosh balance ending |

*Toflawe = Oulflaw = Net increase in cash

Als
COGS (Less)
Gross Profit

Salah Ey
Rental Ex pe
Adve, deb
Total Es penses (
Less: Taxes
| set In

en

Receivable,

Tote
land 3

| Sno
Loic
Got
Soc

bla) Auch

ET

L Accounting AS An Ir
TR Iccounking £

= liabilcbia + Equitas k
Cach+ loan + Si aus Pear us a
Receivable, Rós x

Waco + 3800 + Sa + TOO = Son Ren
Co) > x ox - 2 10 3.

260+ (Bo) yp + + 7e = 17 +.
4 ~ + 1500 = 7 = tl
à

200 + $00 -
(3000) + = - - Ga: - +.
(Gow)+ - ~ + (So): -
Se + (a) + = 7;
Bro + loto + foo + 380 = 3000+ IS00+ 1OSw |
= St |

@i-Tnaesed ón cash of Rs. 000 in agaurst of
account neceivable. | i
2- Decrease in cash of Re 2000 in against hase of
equipment - Ü e —
3- Decrease in eg Ry 500 im a ES eue
be account payattesas “posa ae be -

or in Cask of Bm In

Lara able
al qe: Ico in “gast y sale 4

jar un
x equeret
ee m cash of fr

200 ve O.gainst of jeune
apf Slocle P $ dame

25. Each Besos
il, + Dec th account neceie le
af Rs 4000 23 GAS the Collechern of cash.

sure he Laca in eg ui 3000 hecaux
LU chery
% ? Pe Aeare ne pet es La- Sto

et 4 Sale e a fer cash
as: Decrec x Lupplèd of Bs S00 obi
ae of decieai te secs pa able
we to Acha a
4 beconnda Po able: Decieaje tie ak ele
4 Rs. se. of f Sapplis halo Hs,
py eee ús accounla py lo
au$e, ©

ment in cash. ef Ri. 2600.
s- Cap dal S o ts Capital stock o

x 14 0 PA
bao = se $ Úsuance $ Shores aan

Y nel Asses = Ageb -Lobiilia
Ind of Dec. = [Laco + Goco +1260 #01000. 1-4
End! of Tar [1800 + 2000+ Foo +11/5007- Zu

$T
Inc ieased by 3000
* Because Úsuante of uw Shares & 3000 % that
Crereare de business cavetiment- De do the
Úsuaneo of mew shares, meb arses tnerearel

* he company Üsue. 3000 ‘new shares , make,
changes un nek auch.

Ques # 2-3
BERG 's fine Fooos
SUMMARY OF TRANSACTIONS

Assets

Cosh + Account + Merchandise +Eouiomes)= A/C + loan +

| Receñeablo. Puerto ui a RL)

> = oo

Hoes) 100000 = au
100000 = Emo

800 = |
108060 = Go 1)

|

+ quip= Alc, + Lor Cali
Cr" PRESS
mm 18000 To Roco tua Wera
Epa AAPP |
eo 18000 “lo80co = 8000 enon quo.

(seo) _ (0
as

TE + Ale Rec + Mes.

loBare [3050 Boom 745
= (50) ___
108000 „ Lezo Baro 760
12600
Bu (ou)
COMTE Tew

Foe ie
113000 + 2608 Foow eo
Tasee
2000 Qe):
ES
Ses [eo E Te

(S7%0

2

Tue
(wow) __
32000
(5000)
3300

AuRPHYS Mick Anp
OGURT SHO]

en Seven et SP
[Bataan % Debit Credit
> lege ment oo

ve Bak loan payable Dre
(o record purchare cl ipo

[> a
| Cas $ 2800
Accent Receive blo 0

(To veond psyprentreceird an ace)

Cal 20/000
Capital stock 20,80
(To record insuante + capital Keck)

|

4: Equipment | Sco
i Capital | | Seco

fe a equipmultreceied pt cat
e | Supplies [lue |
Account Payable |
(rod par yp ja actual) |
| |

| |

kor

| Gt
p.| Ces
| Me xccetwable

to vetord accetued pagamos 3

t Treentory
Arcteurts pay
[vetar puchaxdl of

ef A

Te ACCOUNT?
Cash

abi

200
| Deo

f pue sl acc coli)

| Sore
Suv

invento] m account),
|

Account Receivable.

tenon! 3. 3beo
Ay. 10/0
ic. 240
a Uco

| hal. 64 87960

tor! "102/0009

3. 2000 | 10: 2000
00) 2000

Prepaid Jura
3. - Ye
bal. bq 3600

ba ER

Soo

p<
bal o

Land
dye
Lady Zen

bab Wl oes

Ferns & Finbires

y. (0000 | 7
bal Zoe 8: 360

Loc oies bald 111800
pa.1/4 Locos Re 13,500
blyiwes| =

2400

| Aœust Payable, _

a Woo 6: to _ Moibgage Ragable
u So 2 Canon.
bal-/4 S00 tal 4 Gocco
oo bobo Coco

1 a Gr

Gr

Debit
| 9760
34d
Saro
240
1000
2000

repaid Insurtinces
Truenlory

License
Ufo Sappliea

Land

Bailo Vorcoo
fun Goticos 1150
Pecomnt à 5600

Marta e Payalito boj000
(Capital Stock, 103/S0 |
169,100 169,100 |

“| Cash (Fowcco x Ya) ——fi bat | Gea
Baak-loan payable |

38)
le rod he supply a local baie dan) =

)Acman ey, 3
AT? to
ilal Win U ls,
mo

| |
(Co arcod std capital fr ca 4h)

Fs [Pepa ant (21c0x6) 19co

| Cast 12600
(© rev prepaicl ent fer sc mandka)
E
15, Oyen Equiprrent Een
zu i Account Payables 108
(orecod purchased office equipmut mac sar)

prepaid Insuanto Looo
PT ‘ =

(To veesrel puschasd o theo yen Un suante) play)

Accent Recevrbles 1500
| ly jr unter : I$co
Cortar aeliun 4 pressen b Supple 4 eceigd y
| |
[Offer facilite tooo
Casto |
(tr recor purchase sh fe» furnelitne nad eal)

Une

» id [Account | vt gt
em pau parle q gr à

Ir baie 36000 [3-Pepadlet Die |. Cash. 20007
Y Capital 361000 [hy a msunne uno lo). o
ber peptic taco E
121 Nepay 3e INES
bal:"/4_4 1000

70

I
Prepaid Rent

plant 7 cab

I: Cash, 3600 —_| bled Déco

bal C/o} p
a bal Wd Theo
| bab el Sono

W660,

eo Equip nent
Boo |

aks 7
|
ui 0

aid Jrs, heel Receivable
(2. Type
item Pak

Tor

wl i

Oleo fine
Alec 1Go 24 Cas Were)

~~ bare oo.

TRAIL BALANCE

Poe THE PERIOD ENDED SEPT 30

| Debit
| LyIG00
| Déco
7$00
Loco
1600

| Prepeud Rent
10) ¿Eto ip ment
repaid busutan to
Recount Peccioablo
Type wilden
Berti nie

ak loro payable

Recounts Paycthle
Capital il

| Credit |
|

“S00

3$000 |

ante,

70,000

oo

Ques + oF 2-7
Sun! KURAMOTO
AL Joven ac

No. |
9 | Gok
f Capital Stock. lol
To record bote of fer: ite)
pital a

For Te Pepıco Enogo Jan 30, rx

el Debit | cad —
|| oc

Lo,

fo ap stock at friend Astro u
to ed dhe Üsyance of capital deck la fuen
ad (ex Yo)
10 oral building (Sc00 fs )
[ Cash (Tao x 204)
Bank loan parable
bo record the, purchase of
nd & bulo for cash E Bank leen)

lo

No ban sactien -

|

|Beokls Incoloro 15, 100
| Account Payahle pl 101008
(io neand the pucharf backe on ace)

Han [Equipment ELtunduro 29) Kicoo

ash to (fo

(wœend the puse har 0) N equipret fundir foo)

fala, |Pccoxsnct pto a! toto
| Cash b
Forecad the pages made
[A agent of invento xy purchased on acc)

[ue

2 Fan | Account Rec
Sales (Run)

Co record sale $, pue 4 paris on %)

SU Ofpèc sapplés | 6) 1200
i Account Paya =» Meo
(lo veeurd the pucha of off Sepplis sm ada)

Ban Cash (1000x Ya) 1° Soo
| Pe Receivable (1000x PB}
Lio record ascaned payment 4 Ale nace

h | Aecounk Receivable,
l m Lane PET 1000 3 wh oo
3 Cap Sit Y queda Se» 5 3 Bald Go
"A AjeReo So} PER toa 1000 wo
PM Bla 2550 Ya Ball con =

[5772
Ua Cal Wl 96 So

Inwenlery
ae | Ei Lao
110,00} a
ip poll or] _
5 land
‘fete zn
PRA 2600

Ko

2400

| Gf Banken

a cfs By Supls
aah = ll

mil Pal. 10200

‘Tes

Lame a

Butldin _
13/, Bale og

Lime Se

¡pLoJb A Zoo.
al Flan _
AT Gi 16000 24 PER loco

3} Bale/d a

ISic00 I

Yo Bal Sop

Bank loan
Sf ask Ge
FABalcÀ Coro

‘h Bal Tun

Rccant Payable,

2h Ch tool fu Ibn

3)1 Bal A ya

HB opc Hdi

2h Cash Ubuso
¡ATA
2) Bald 695

Noe | 12

66000 Go

Dal os

ETES

Question # 05

à. Speciric Accounts Tat Pre DFFECTED :

a This bansacdien bs an exchange cash fw Capital
b. Ths bangdim à puxchoues 6 i mart Lov Cash .

e- This hansacio à pau sepa we ow Accayb-
d: Tus transaction à Art Bs ade nod.

e. Tha hansaction ia Rares alle

3. equi ment” we vachara |
f. This tvan saction ty a dp
Acedtınk pale

7 gists Pee Íncreasto Or, Decerases
de yd incwased by Ao avd Copal dk
0
ment à increased by 10,000 and Cork ú
d by [0,000 « Y

fry a Incremsed by Seo and account payable
u pale by 8000 d a

ù

"a increased by 1000 and cash à

Be

beet

à nent

PR J by 10 - 4
ed by 3000 and Cash ía

able is decreased by 81400 and
Loco tg cask guoo-

à

b lO fe. 200 €. Stoo

——_ Euipment EEE Inwenlöy

Luo | Soc

10,00 19000 S900 | So

Bal. Roco bat. Seco | —
—PjeRypble 7 7 Prepaid Rest

+. au Je. Soco a 1x)

Akoo _ 1000

Coco oo 1000 e

AGO bal wee =>

Question #06

RECOGNITION OF AccouNTING Events:

@ No Record , because à En placement
ovdev tha à potegal action ike worden
document So they are pot Liable oy bound

& fulfil the ordev, Tk à posse that
ovdex Com be cancel -

pends Berne wep on pr male
PO d

Caf Record» because tk to nol mentioned

A aro UE fo personal or but
parie”

und, because accouale peo la paid

2 ets, Ple got think» mot Ik a stp

fg borrow

OLESTION +

MAKING T- ACCOUNT :

Cash,

— las | Account Payalte
e OO | = t
| O e 000 =
2000 az
bal 000 —
- Equiproer ot o ___ Bank Loan Rayahlı
| z ra a. \ dono |
soo Doom
ax er

aso» ==
| DES

| Tosco p maid a popaly lax bl)

2. | Rent rt open 1, Yoo
| Cu
© Rel pais mont

3- | Cask (4Secox 207) 13,500
Accor Receivable, pass |
Sales .

|
(To netord Salis rca enlace Lai)
|

- | Cesk % gua sold | 321000
| huertor {|
[Co ed cost aj gp set)

$ toy \ 32
| Per Payable, |
[6 record p hass of tn ent on

Aecaint Recedvable Dyed
o record colltelion 2) Ah from make sales)
Cash (Sales e. Ape) 11,000
Account Receivable3 Woe

(7 ecard colleclón fe la wapül)

Putombile expense. 1, 400
[Repairs experte 1) (00
| URL expense, do
Tel |

Co veord paid expenres)

- (Recount Pay able | 91000
. 5 Cok |
(ovewd payment 4 cube)
Gah 3800 |
Loss on ae of land TN
land Wo»
(record Geleof lad) |

|
De pal | ve 1,300

(lo recor wogcepense net pais

[01000
14,000

mind sales freak Eon arcunt )

5
Fan iB} Cost à § soda geld 14,000
u ¡Ta

rund cot 4 sales)

y at 18,000

(brand pusha mg mern je cask)
|

Gin (ash Dre
Porat Rezevables
¡Gro vecod Cash Collect)

an) Recount Payablos
Cash |
Co record payment 4 els)
Yard Cash ||
| Aecbuat Reccivablo, 1
Sales
(To send cash ¿ edit. salia

241000

| 18e

| 197000

ET

(o rod od 4 sal)

Jan 31 Salauis expen

Taxes expense
| Automobil expos
py

[ (To weorderpenses pa d)

General, dedy peña ie
In? fit {ont ef Ret ep zum 2) Capital ryan =
9 Banklan 1500 hrs Bree mcr =
1 Soles 1047 Pec Ry 1m Erz ae
1 ke-Re of Gens li Yo. Bal AL aoe
dl Salo 20D
Fh Bal Soe Ofte Egupmant
Arve | or Capt)
Y, Bal DA nen ue
pes (ow

API

= entry
7 Mey 2 0" CS I
Sl Kash ¡Bjoco 7 COGS 2,000

5} alé Soc

Qoyoco UDyOco
ALORS

Account Receivable,
FT Sole 141000 244 Cash 12000
by Gab 8100

22/000
OS

13 Balefd ions
22,000

_ COGS _

KEN] Veo

4, Pac Dr À
tall 260
ero >

Rent Be pre
oh Cah 240

—

24,010)

Y LACET

__ lui Ex

>) Cash Be ES q
To ak Be
Bono

CAPES

Utilities Expense
3h @h Yoo

Lo

Lo!
PATES

__ Tu Expense

1% al ba 3S eco

| __Putomoblle Expense,
Ph Goh too!
Pital teo,
up) A
Wa Bal yoo) | u

Och Bin

>
ta A

: dal
¢ PF Aisch We
Y Cala 14006 |
74,000) u0©
t “Hh Bal BA >
#5

_ fecount Ruyable, _ _
4 COTE Hora
Ih Bale] 7 À Corn Mads yp
À Blof) _ = mt Ci
Sup Sat
Ya Bel as

som Helen} Homage, Have

bi ac Ended Tenue 37, x

1 (full
(oh
| gurls &

cere ES
Peut cable
| kn ke
ee Bat

je Expo
A qu

(ts be e
| eet PF

€ Iulidas

Fe
| pdlance (Blanca, Adjusted

Debit,
20,600
241000
10,000
Sao
10,000
240
8,000

to
Deve
Io
67)

Credit

a FE hee pas
e anal ( (67-1)
> fer énded feb Fel wna ny
Dato Padículams Crd
1feb Rent Expense ce ~

Cash 10 1,009
(ortord paid ant expos)

Zeb Inventor le Bron

Rectustt Pe es
Co record né i gy in a ant)

4feb Adverbisfnont: Eprue » Uvo
Cosh doo
ft eco admet ep eme paid)

heb | bode : lo Gap
our Ro £ 20000

E 387000
le b | gales on cash é Gedik)

eb (Cost & on
eae ro”
¡CTO Year] a > geet otf)

77 Maxketahte se dés M Sao
Yash lo A
_ = : CD

lb «record (M3) Invested ty ndkedabl, ser, y)

ch Accunk Pa able » Sao
E Cash! lo ç
(D yernd payment made fer inventory) =

Cash

a ya
Account Receivable is ° Yom
(To ane allen d ca)

pas Cash lo 2/200
Gain on sale g Mackdable Guess) | 200

Marketable Sendas u YD
(Te nord Sale 4 mazkeahle Secwtilezs)

kb?

kb | Gh lo) 37600
Preuit Recévvalle, ¿5 Aro

Sales su 211008
(To veurd Sales en conh 4 erect)

|

feb 98) Salus expense
Ahitomelile expense
Reus ci I
tush
pi expones)
febo8 are ke
( x 250
d om tweshnent )

Rent Ex

Iwerlöny
Pay Com WHY Colas 2 | Ye Cash loco]
wa BA 1
1000| 1090)

Diam BAS Yo Bal bly E

~ Cash
sep Re

2,200 "A, Maude kun

ETS

ER

007
peaunt Recewable

Pla bo “ty Cash eo

ay, Sales 2362

Ba be

Suero
ES
(OS
1%, Acti 2000
huey acre
Le Le

Seo

COTE

Gp loo Wa Ca 4
Uno HUB fos 7, | [>

Aeceusnl Papi
Ser tl en.

2 cb Go
Y

13,6%

daa

Petedistag Expeane
“Ya (ash Ugo
ho ba yp
eo to
Ya Bal lt on =
Salts
Fe Csh€ ladt Soo
% Cash tGredit Qe
“Hi fdr |

Or,

Can

fbal Ye Guns

Marketable Seuls
le)» Gal Goo Ph, (uh da
= Y Wa 2e

Sasl Se ..

Bulle |

Gaiven on Sale A Tha Calan Expense,

mis

SA dr
Ar Cash 200 2h Cal eee

- + de VA do

SIR Tan

PS Bale 2

CT EST TT ke

Prdempbibe E Repair Esperas
a Coah 1000 eo Qu Io
ENA o

eo EN

feta a ~ Jabali 1600 =

_Intixest Recevablo _ _ SntinestRemun.

ETES taa
tal; 260 BA 25

= æ

= wei BY Se

as =
Ed KE
“head 5 =

— fo Balt 156

4

idend Declared D
7 repaid 9
qa , Oper el ua)
PP Bald Ko

fe x? Pal de
ze dus
Era =

Store > Equipment

Gba top? CET ”

HA Wine Ka
nee 10,000 ET LIA Ss Er]
wl Y “10000 Lay) ET

banknote Po Copikal Sede
== OpenBal 1690 Opental Efico

Bal YA 1580 — WA bm zen
A 116% be a Ger Geo
Bally ej Bal y Bus

| Debit

Nu
u48o

Intixest Reccvable 250

Moxkelabk Secuilies 2000
Inverter ao
: e Prepaid insurance, 2,000
Store "Equipment Liceo
Ge kunlliuv {0,000
Düidbnd Deelaud So

Qnbet Expo iss
epado 11800
Nutaneile Boom 1,000
Saloriss Espere Ave
Rent Espert hoc

Pdvertisen Ae. loo
Cost % Be Abad
Account Payable

Sales e

Gain on Sale, ef Make Sees

Heay

Come Statement :
+ en Ported Ended Feb 28, 1480
Soles er [once]
Loss: COGS beso)
Gross Profit Er

see Per

oe Ep
El,

Pénal open

Sahaiss Expense.

Rent Bgena

Advertising Expense.

Total Operating Bepermeo (Les) (121059)

Add: Other Tne,

Gain on Sal

A leauenla
Statement

P 23395
Lees: Divielond declau d (1,500)
Retained Fowng ig (lost)

Ques #
a

Sales Ñ mi 200 ie
Add: Cain on Sales Tes
Tet Sales es
Adel: inlite Revenue, o
TL Ruenue 30500
Less : COLAS es)
Cross Profit MT LR
Les: Opesaling penser

ty on

Fr Expense
Ninkurest Gpeux.

300 |

4 Erpense.
Wages Loto

Total Expert e
fawig Before Tax (Ber)
Jess: Tax

rune Alza Tox (EAT)

Tarkington

Statement of Reh

fr Mu Period

| Retired Erin (Be)

Add: Cow Mu ax

| fl) Gant

| less + Cush oluielend

T Retaind Fami (Cec)

Qu)
20,0
Sto)
ro

e We have actaíned eunng Tito E we pay ca
diidend 2000 & ón Apr that och oe at ad
in Too & make actoud & did.

\

Taal fn Spatz re
Boldnce Shee!

As of nok, 31, [906

iobliliza

0000

0/000

eco
- Quo Talal Labios
7000) | 36000 Equilis :

LORD Capital Stück So en

11000 land Cry
Tr 2008)
Goo Net Tuan Se |

224100 Totalliab’ Gui Fu 2244

a 3-6
ques ca SABE Conroermon

income ment (Accruol

_ En Tra Period oe )
Fallalión Revers DH
e pending Espera Fou
ense) (ox) | 26,260
Suppl Expense (uote) USoo
{pare dental Expense lern
Inigllaneous Expense. U,Sco
gar) Expenie ¿Ha |
pial O) Expenses (18,450)
{net Anton. Uy 550

CG Ware Corporation

Tneome Statiment (Cash Bas)
for The Period Ended war
Consukabion fee nome.

le ques am |
Rent Experi (Docox12) +5000 | 24) 000

leave Expense (I6%0/j2)xll_ | [4,860
Miscellaneous Expente, | Sco
Ye Supliss wed | 4
(lois Erpeuse | So | |
Total Openahig Tupemes (10850)
Net Lous (62,850)

7 Expense,

+ Peposal vasudance Asset
callin Asset
de Interest aL neal Revenue
2 Ueaaneel Rent Lab
¿alo Revent
9. Retained Eaunings Bulk
pp GE $ god sdd Le
(Tax) payable labdé}y

} (mmiegion paid to salespenon “pense

Ques # 03
DEN BEAR Company
ENERAL JOURNAL No,3
For THe PeriDD ENDEO we

Pel Debit | edit

Nov 3 | Advertising Expeare
Cash

lo record advertisement espens)

Ne le: Recent Payable 38
Cash EN
(To secar payment of utilité bilb of, act)
Nova Solonias Experse
Cash,
(Torecmd salaries expense)

000
oo

Na Salas
Cash
Ak payable
[To versre) sales por cash & ch ac.)

Soon

i second cot 4f goo sole)
2 | telat bus
| h/o pile
Le md Cr bills on %)
ves # 04
L SHERI FERRARO
INCOME STATEMENT
for THe YEAR ENDED DEC 319 1986

| [lnsultation lee | Paco
|| bales |
[uorocO

| dore |
| aSioce

Net Tater
tee (4S;000 x 307)

Ques + 09 =
Orazco CORPORATION
RETAINED EARNING STATEMENT

__ Re Te Perion ENDED XXXX

qe | Yeas 1. Year 2 eus
Retained Eacnings (be 5) | 800 queee 921/00
Net Income. 1S/000 14000 20,088
Less: diuidend (tooo). ( 1,009) (22/00)
Retamed Easning Tel! 14082 [42000 | OIE

4

qu #5 cavAaTion Inc-
ONE STATE EE
oeD D

for. THE E Vene EN

perte
Sales

Iniestiment Revenue
Epes?
| wages Expert

a ES

APR

ec 31,198 —

980900

304,200

43,700

2200
1990
1228
Pl |

Do ‚(84 35)

A
D2O0ULS

Chapter #05
iNANCIAL Statement
Outeuts

Exercises

~The _

ques Rol
Ree | Or
; Reco

sep we and
expense accord in Gn bu
bp fhe separate, baal enti
Sia ho raat vateption ı the oun has adapted

ay abtagnizurg “ES asen wher carb bs
ee cif, ls when ite incumred . Due tb Hu

matching conept u vollalad-
bidon employees is mat an amekt because
Ganpantss don’t know that aff Drainies
le a Wwe 7 te gee eng
5% de go a Tico tica
lá] m legs due t
cg, pb a re we.
Assets has necyrded ad Etna co url and
velos ik w gold ox dispose of Jn thos Senaxin hin)
wot comienbon us wlalid .

D
el are persona)

> account due

wnept à vlatd

ly

Ques #02
Account ConveN TIONS AND PRINCIPLES:
a. Hidica) ces) fared on gag Crew 0 spl i
pra nl @ Pen; Samels shoold be
Ralued oh eee ee
b. financial Gamer: all
ax volugable
hw yo cars E de wus ne
Co hu dim of the Wane:
ge aol baie the mal amount
ws cry fe decisón naka hut mare
elatemunb ws.
‘Tre Compa pany is ob pubtrealy opuolin bre
y Inia thee à no | “pod fee tr
whan Company meeds to w der |
dlatements and mo ene Can fevee He prondut
lo do jo Rab due la is, fire penal au
à vou ß Ko:
FG te © o ALO E
van ey Aue Pe as tone esfera
which i mot deprectable-

gues # 05

CLASSIFICATION OF GALANCESHEET Accounts

Trucks wred tn business

Copyright ned by füm
id Sndaance

Current Asset

+ Sapplis on hard Canient As

4. Suppüs Wed Not a balaxesheel Vim
Uneomed ant Canet Labılilar

$. Bonds Payable, long tism Liabililiea

I. Land held tor fading une Long team Ines ment”

Lo. Land Prepay plat € Equip

In: Account Recewable, Current Assets

a. Retauned Easnings Stackhotders Qui,

p- Perumulatid Depreciólion Truck pa pplot ¿Equip

u. Cunent Mofnilies e Lang amd Cument Liabiliticet
Current Assets
Not a balanesheet itm
Qtsckhkdess equitg
Current Asset

een incest ment

Stack heflers uly

MB & Kama
Current Li

10,500 Flecount Pas ue Sıtoo
st Payee 3,500

ak
Marketable Secuilis Current tallas 19,500
Total Current Asch Term Liabililla 1
dnvestrents: m pot paul
Cash cg fand Si Tolal lng alice
Long baum ta ment Share holders Equity:
Total Investments o Goo
„Plant & Equipment: — Rebainedlawuñg _6Fmo
Pele ET Total Shossheldess qui Gene
Less: A&-depresiien (2000)
Equipment, Uvicoo
less: Acc. dapreciadion Gi)
Land 0/000
1671600

Teme AMET
ore E ui 21680

HART CORPORATION
BALANCE SHEET (CLASSIFIED)
As ON DECEMBER 34, 1988
VASIUTIES Aro Eauines
Current Uabditi :
121000 fkeainl Payable | Goo
Soyoco | Cuperd Maluiilies 40,000
Ge Maltin
biere, 240 EN
AO O alimenté ES
temer: E Long tuum Labilıbis:
Go a Hana 26,000 long lun debt 1000

Long Eur Frwestment 101000

195 Investments 36,000 Total Longteam Siab iii! 00000
pagal Plant & Equipment: Shareholders Equities +
an 100,000 Gromon shack BO parva, 206,00

ule 200,000 foret paid-up cal 30 -

less: Aecdep-building (25100) Retauned Fad 000
Equipment j y 60,000 Ÿ

tot. fee dep Equip med ( 101000), .
Total PPE 326,000 Tobal Shareholders quits $ Ren
fatongibly Aseb:

¡andina Hare

fate, Sw
ol Aseti SOR Tralliobälquiies "Sohn

UES À 06

L feces = Curertabliil

tek working capital Cymer
e 2000 = 16008
y À 4° 61000
landlin: Grow à an exba amount which we
must unvert somewhere af poe Be au
current Liabilities vom euv Gent ques

à Cunent Ratio Curvent Ratio Asset

“Cowen Gabun

211000

161000

Y
Explanation : wu good, mea 2 oF musedhan
2.4 bad

3 Debt to Equity nalio „ Total Liabilidia
Total thaw holders qua,
= 30,000
ETS
2 O-SHSYXIO => SUSY
Explanation debt ü a Utile bit mow dut to
thir company u at nik because deb u
aloecly proportional Do nuk,

Aja dct lo Tolal assets nal Tola) Liabubturs
" Solar pedo

m 30,00
Bow

3529 x13 35.4

Janalion: 0-38 is good aad Doce loan ty Conran

of J vw.
2 6 ;

Ianation: % Le. made. 20000 Loan to Company

jor. 2 yes The {cnancial sheength. and stabi ÿ

bu be qa

ques # ot £
CLASSIFICATION OF Income Statement Accouit

„Gala Revenue

Olfuvtguino and Expos
Nol Ga Snore Hatement loa
+ Gain on Sale of land (ihe. Revenues, Expenses
y. Duidend declared Nok an Tntome Stated din
I. Interest pate Not an Aue Satimend ‘Jen
I Depreciclion expense ~Aderin oft equipljeneial ¿Admin Gipense
Soles commissions paid Salling Epense

Rent received in advance Net an Income Salina” dam
De Prendenti Calor General Admin Expensa

|, Taxes
y. Suppliza on hand

quel € Adynin Esperas
Ming Expewe
Ofhs Revenue & Expense
Selling Cxpeare

Not an Irene nent lin

501000

Rent Expense,

Selhäg expense.

Cost gb sold

Crereral E Admin expense

Total ex (43508
ET (moy Sue Tae) wie
Tasmexpeare (2,250)
_EAT (Eaining al tayes) 4250

we fr Pick
once qe e Facto
et Income 7.
to de ended Dec 31, 1987

a ns
de (CO
db of Joos sold (431000)

Lea oe ET
delveu penses 1,00
Salar Span (20c00% 40%) | 81000
peprctiction Epeux(Jooox 47.) Reo

grave. Expease AS00 » 107) 1,000
ape ne en) (27000 |

pee à x (court
ats Epene(aGoox6o/) | Iso |
had @rlhlnele 1]
(nome, From Operalions
Oper Íntome, eases
Adds Rental fntome |
pee net Epeve |
ee Tax (er) |
ua aoe +]
fomisg afte fox (EAT) |

nn

pat 2 er 48 Balance SHEET ANAL

Part 3a
Net (nteme = 26000
TAsseti:
T Beg. Assels = 1,oooıoo
T End. Asets = 11500,000
Average Assets { Total) = 1600,00 + 1,000/00 ©
2

Total Prevage Asset = 1,2S0,000

Retin on Assets (ROA) = Nek Inumu
Prevage Total Asseb
261006
280,000
= 2%)
Total Shauchstdert Equity :
Total Bes Equity = <00;000
Total G gui = 3001000
Puetage Total sharcholders Equity = So + na
2

Aver ge ” “

= 600,000

pue om Aqui (ROE) = Nef Yorvome,
E Mage Wal equis
. Ko
600000
ib
fod ig C pital Current Asset - Cunvent tiabilitiq
6721000 - 531,000

Peg WC = 141000

frd- Woalñg Capitale 183,780 - 610,326
nd.W.C = 113,428)

Beg. Cuvrent Ratio. Current Asse

Quyrent Labiktit
2 672000
$31,000
frd-Crnent Ratio 483,760

640/326
End-CR = 117

va
rye.

een
ce Ol a h
Dillesence 4 ang Cop 110,495 = luto”
Tf wee = 23535]
Ratio - [rd CE - les CR
Ll 127

Diferente 0) | Current
he -01

di
wepaking cap ital is decreased

Explar
in fü
by 2875 od the mand Patio à changes d

By ol

#10
Property > Ran, Axo EQUPMENTS NATURAL
Resources Aw Intanasıe Assets
Exercises

Ques # ol

Revenve VERSUS CAPITAL EXPENDITURES

la. New warehouse was paintrd úmmedialil, olía ub
purchased and before ib we, so iki à capital
Dodo ? | +

b. he purchased ok used delivery Buck, noo Tis
wae puckaed timmediatily , sua capital
expen

e Purchased à wast paper basket por am he office,
0 waste popa net a cupre ciable, asset ib os
tena lia under revenue, experdiline .

ld Installed abe Gndihönng in an dfiee build

the beilerment wit U & ca i «pe

e-Puschared land fer poste ul we, i isan
indinau expense, which ne qe benafit in foto os
tiled 0% poyenud e endilunee nop
Deshaul truck instil of purchaned of meso one LA

a u bled as a capital

OS

QUES #02
Debeumining Austin Cost
A. Land 320, 150
Commission 11000
Cleaung cost 17000
Tal Requisilten Cost 352) 380
*

6000
aSıcco
LIT)
too

tax AS
un quitlionest ET

- Land
Commission
Cleaning fee

- Offiv Equipme Joo
Slate tates'(aSya0 x67) #4
Franyıtalion Ao
$nstallakion Ugo
Testing of onu equipment $00
Total Fleguitsétiin Cost 7

Ques # 03
Lump- Sum Pi

Y pures 4 “rac hâneayy (lump-sum) BN tte
Qmitallalión fa"

Preis’

Total af Guise cat

lump-sum Cost de each machine,
Machine 1 (2/0 61100)
Machine 2 (3/9 x 641500)
Machine 3 (Ufo x 6101500)
Machine 4 (io x Cafe)
Tolal

Ques # où

Exchange of Assel for Stock.

Machire Bo
Li Cash A 3/00
Copal Sale 19) ie

Purchase, % machine im echange ck cash €
le has Ma) (Root Co pany)

Publio Co

ito
ash 3000
Capita) Steckl1iccoxa) co
Purchase, $

of Mache ir exchange of Cosh &

1000 Capi a) stock Badıng as ak pee dar

Yes, The, cost melnad aquí the assets, puachaye

be Antovded a Cash puto and matketralue -

ppltes to most of the plat,
prend bud: mat vet on; lan
E and ap

PR ont daprecial
depre b ‚ar araludtion pote, d'u

a eds om price fr non- monday

€ tangible rie otherthen land

AB - iverkory is non-monetary assetı whid
By" u noédepecinble-, mon-current amela 4

monetary, asset au depredalíd, Jen
decrease avalue but tue cast allocdlien

prem

ent esontially carre)

= Deprecalon u mot a díed suite
ij cash

talulaing

o ShReght “Lio Melt:
_ Cost Salvage valio.

3:8 ee
8

. 376000 each yanz.

b. Units of = preduchion method
= (ost - saluage valine,

Estimalzd ral

Bec — Soper
00000

LS parie

Yeon | _Pldes Driven x le, re

Yeard | Immo x 15

Yeas2 | Mojo x |

Years | 600 x
x

6
[Es
Year | Mor x 1S

B Ques # oF
Cal

0. Shaight Une Method:
st — Salvage Value
y e
= APOLO 2000
5
= 5y0o each yea

= Syoox 5 = 21000 hor five
+ Shraight line cate = gor. 20 thanefre DDB, 4

_ 360,00

Depreaiclan,
450,000
34S) boo
412,800

In

0

b. Double- Dain Mehod: * $e nah Sr Aah :

= nor so

| Yeasly ci ir mul Buk
| cu

—__|Deprecistlion| Value,
| 9700 x my | 10,800 | lo, 200
ao | l6r20x Y | Go | A426
tooo 91720 x y | 3688 5832

$832x 4 | 3/23 | 3,499
139.6 2/099 _

[ © Caltulalion Pocumulakd Book
Year [Cost |Depreciable cost x ad Depreziälim Yale
4 ¡900 | QUID) x He | 8260 TI
2 [nero | augel x Vis | eeuo | 18.24)

% 19,000 | QUge| X us | 498 193,
Y ro» | A] Ys | 3320 | 2188)

S líos | auto x%s | Ibo | oro
[| Toul [24400 |

Ques

b

fra

Tne decrease
9 in be Used as a he sten in

Es #08
sa of wecialión Calerlalion
se in cleprecialion expente uv
loc, it
gum ef lig m as
a LOC = JO |S
IT

accorde] to this ntl) the io BS

Sboight Le daprecialion = 2401000 = 301006
Ss

Graighl Line, du
„2000,00

35
2 600/000

Sraight are dupesdlion . Ware une y - écorce
000

U years

The warehouse uns jrachased Un januar 1 1983.

© aq ike: alo = 8 337%
Double dlechiing = k:67%

Straight - Jide, Method:
22360 -180° . 3ulb-6F (annual up)

beccteclininy Mathes
grp BYI6. CF x 12 = (41,000 +1800 = 42,0

(orinal cp)

Double Dechning Mejhed:
52,800 x = = 1934-76
ne (7134+ HG) + a 16-61% = SUS: 39

sonny

feaxs

a. YRC eer E hy oh the year digits
198: 8(8+1b =
350,000 - 20100 = en Fog = 33333. 33
43,333 x Yi = 6l,110-83

1984+ (2/12) x 99,339 = 1,222-16
(0/1 )x 33000 (7/4). 3472.27

Bape, aE

# 11
won of. Deprilalión Estimaliss

(order) 8/15 = tieso annual de
36000 x Byeass = [Bo accurmlalzd depregiale
(640/000 ~€1000- 108,000) /lo Yous = UB, 800

Annual cle pretiakion kr 19

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