Question
The following information relates to Moon Light Ltd.
(a) At the beginning of the accounting period the company has a salary payable liability of $200 and at the reporting date a salary payable of $360. During the year the salary expense shown in the income statement was $400.
(b) At the beginning of the accounting period the company has property, plant and equipment (PPE) with a carrying amount of $400. At the end of the accounting period, the carrying amount of the PPE is $1,200. During the year depreciation charged was $80, a revaluation surplus of $240 was recorded and PPE with a carrying amount of $60 was sold for $80.
(c) At the beginning of the accounting period the company has retained earnings of $2,000 and at the end of the accounting period the balance of the retained earnings is $2,800. The reported profit for the year was $1,800.
(d) Moon Light Ltd also provides you with the following information on its sales and collection of accounts receivable:
Sales for the year $16,000
Discounts provided to customers for early payment $400
Doubtful debts expense for the year $200
Opening balance of accounts receivable $3,600
Closing balance of accounts receivable $3,200
Opening balance of the allowance for doubtful debts $360
Closing balance of the allowance for doubtful debts $320
Required:
(a) Calculate the cash paid for salary.
(b) Calculate the cash paid to purchase new PPE.
(c) Calculate the dividend paid.
(d) Calculate the cash collected from customers.
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