College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 12A, Problem 3P
To determine
Prepare statement of cash flows for Company Z for the year ended December 31, 2018.
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Use the following information about Ferron Company to prepare a complete statement of cash flows (direct method) for the current year ended December 31. Use a note disclosure for any noncash investing and financing activities. Cash and cash equivalents, P5 Dec. 31 prior year-end $ 40,000 Cash and cash equivalents, Dec. 31 current year-end 148,000 Cash received as interest 3,500 Cash paid for salaries 76,500 Bonds payable retired by issuing common stock (no gain or loss on retirement) . 185,500 Cash paid to retire long-term notes payable . 100,000 Cash received from sale of equipment . 60,250 Cash received in exchange for six-month note payable $ 35,000 Land purchased by issuing long-term note payable 105,250 Cash paid for store equipment 24,750 Cash dividends paid . 10,000 Cash paid for other expenses 20,000 Cash received from customers 495,000 Cash paid for inventory 254,500
PART A
The following are extracts from the financial records of ABC Ltd for the year ended
31 August 2021.
АBC Ltd
Extract from the Statement of financial statement as at 31 Auqust 2021
31 August 2021 31 August 2020
- R
- R
Bank
50 000
20 000
Inventories - trade goods
22 000
30 000
Trade recelvables
77 00
69 D00
Trade payables
44 000
46 000
Prepaid expenses:
1 800
1 200
Accrued expenses: Interest
1 000
2 400
Accrued expenses; other
5 700
4 400
SARS - Income tax payable
8 000
3 000
Dividends payable
1 500
2 700
ABC Ltd
Extract from the Statement of profit or loss and other comprehensive Income
for the year ended 31 Auqust 2021
Sales
592 000
Cost of sales
(301 000)
Gross profit
291 000
Profit on sale of Equipment
9 000
Depreciation
41 000
Interest expense
2 600
Income tax expense
15 200
Profit for the year
110 300
Additional Information:
1. The dividends declared for the current year is R2 400.
Data concerning the cash records of Tamang Panahon Company for the months of November and December 2020 follow:
a. Unadjusted book balance on November 30 amounted to P2,258,000.
b. Total receipts per book in December, P1,400,000.
c. Total disbursements per book in December, P2,400,00.
d. Unadjusted bank balance on November amounted to P2,100,000.
e. Total credits per bank in December amounted to P1,200,000.
f. Total debits per bank in December amounted to P2,500,000.
g. Deposit in Transit
November 30 - 130,000
December 31 - 369,000
h. Outstanding Checks
November 30 - 95,000
December 31 - 30,000
i. NSF checks
November 30 - 60,000
December 31 - 40,000
j. Credit Memo
November 30 - 30,000
December 31 - 50,000
k. Other Debit Memo
November 30 - 90,000…
Chapter 12A Solutions
College Accounting (Book Only): A Career Approach
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