A company is coming out of reorganizationBook Value80,000ReceivablesInventoryBuildingsLiabilitiesCommon stockAdditional paid-in capitalRetained earnings (deficit)200,000ReceivablesGoodwillBuildingsInventory300,000300,000Additional Paid-in CapitalRetained Earnings330,00020,000(70,000)with the following accounts:Fair ValueGeneral Journal90,000The company's assets have a $760,000 reorganization value. As part of thereorganization, the company's owners transferred 80 percent of the outstanding stock tothe creditors.210,000Prepare the journal entry that is necessary to adjust the company's records to fresh startaccounting.400,000300,000DebitCredit

A journal entry is a form of accounting entry that is used to report a business transaction in a…

A company is coming out of reorganization Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) Book Value 80,000 200,000 300,000 Receivables Goodwill Buildings Inventory 300,000 330,000 Additional Paid-in Capital Retained Earnings 20,000 (70,000) The company's assets have a $760,000 reorganization value. As part of the reorganization, the company's owners transferred 80 percent of the outstanding stock to the creditors. with the following accounts: Fair Value $ Prepare the journal entry that is necessary to adjust the company's records to fresh start accounting. General Journal 90,000 210,000 400,000 300,000 Debit Credit

A company is coming out of reorganization Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) Book Value 80,000 200,000 300,000 Receivables Goodwill Buildings Inventory 300,000 330,000 Additional Paid-in Capital Retained Earnings 20,000 (70,000) The company's assets have a $760,000 reorganization value. As part of the reorganization, the company's owners transferred 80 percent of the outstanding stock to the creditors. with the following accounts: Fair Value $ Prepare the journal entry that is necessary to adjust the company's records to fresh start accounting. General Journal 90,000 210,000 400,000 300,000 Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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From the following information of Axis Limited compute the Replacement Cost Value / Net Substantial Value Liabilities Equity Share Capital Preference Share Capital Reserves and Surplus Adjustment Long-term Debt Short-term Debt Creditors Amount (Mn$) 2000 1100 800 1400 800 1700 Assets 1100 Debtors 8,900 Fixed Assets Inventories Cash and Bank Balance Amount (Mn$) 4100 2350 1150 1300 8,900
ome selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA) in 2021? Inventory 12,500 Total Assets in 2021 110,000 Current Liabilities 40,000 Total Assets in 2020 90,000 Net Profit 12,000 Shareholders' Equity 65,000 Select one: a. 0.18 b. 0.10 c. 0.13 d. 0.12
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Presented below is financial information of the Mayer Corporation for 2020. Gain on the sale of investments Net sales Cost of goods sold Loss on disposal of wholesale division Interest revenue Loss on operations of wholesale division Selling and administrative expenses Dividends declared on common stock Write off of goodwill Dividends declared on preferred stock Effective tax rate on all items is 30% $170,000 $54,000,000 $38,000,000 $690,000 $115,000 $610,000 $9,700,000 $430,000 $800,000 $150,000 Mayer Corporation decided to discontinue its wholesale operations and to retain their manufacturing operations. On July 1, Mayer sold the wholesale operations. During 2020, there were 850,000 shares of common stock outstanding all year. Instructions: Compute each of the following. You must show your work. You may type your answers in the text submission box below or you can use the "Add File" button to upload a Word file or an Excel file. If this option does not work please email me to let me…
1. Floyd Corporation was formed and began operations on January 1, 2020. The corpora- tion is located at 210 N. Main St., Pearisburg, VA 24134 and the EIN is 91-1111111. The corporation's income statement for the year and the balance sheet at year-end are presented below. The Floyd Corporation Income Statement for the Year Ended December 31, 2020 Gross income from operations Qualified dividends received from a 15 percent- owned domestic corporation Total gross income Cost of goods sold Total income $ 320,000 20,000 340,000 (70,000) 270,000 Other expenses: Compensation of officers Salaries and wages Bad debts (direct charge-offs) Repairs Depreciation for book (tax depreciation Advertising Payroll taxes Total other expenses Pretax book income Income tax expense Net income $80,000 20,000 9,000 3,000 10,000 3,000 15,000 $90,000) %3D (140,000) 130,000 25,200 $ 104,800
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Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio.
1.The changes in account balances of ENIGMA Co. during 2020 are as follows: Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase Share premium: P9,000 increase. Assuming there are no changes in retained earnings except for net income and a dividend payment of P19,500, how much is the net income (net loss) for 2020? 2.The financial records of DISGRASYA Inc. were destroyed by fire at the end of 2020. Selected information gathered are the following: Inventory on January 1 was P92,000 and decreased by 20% during the year. Sales discount amounted to P17,000. Interest expense is P20,000. Cost of sales is P500,000. Administrative expenses amounted to 20% of cost of sales but only 8% of gross sales. Two thirds of operating expenses relate to sales activities. The company is subject to 30% income tax. How much is the net income (net loss) during 2020? Thank You!