Accounting for Managers (ACC00724)

QUESTION 1

Top Cake shop was established on 1 April 2019 with an initial investment of $100,000 by the owner (Jack Claff). During the first few weeks of business, the owner employed a part-time book-keeper who recorded the following list of accounts:

Accounts payable                                           $37,100

Buildings                                                           100,000

Cash at bank                                                    31,000

Furniture                                                           12,000

Jack Claff – Capital                                         150,000

Baking Supplies                                               5,600

Loan payable                                                   20,700

Accounts receivable                                       20,000

Land                                                                  43,200

Mortgage payable                                          40,000

Cash drawings by Jack Claff                         36,000

 

Required:                                                        

  1. Assuming that the amounts above are correct, prepare a statement of financial position in vertical format (show your calculations)
  2. Prepare a statement of changes in equity for the period and determine the amount of profit (loss) made by the business during the period of its first few weeks of existence, assuming that the owner had invested an additional $20,000 into the business just before the above amounts were calculated by the book-keeper. (must show your calculations)

 

QUESTION 2

The following transactions were undertaken by ABC Pty Ltd during the financial year ended 30 June 2019.

  1. Sold for $12,000 used machinery with a carrying amount of $75,000.
  2. Issued ordinary shares for cash, $300,000.
  3. Purchased land to be held for future expansion for $220,000.
  4. Paid off a long-term $90,000 loan plus interest of $8,000.
  5. Purchased machinery, giving $50,000 cash and signing a mortgage loan for $90,000.
  6. Purchased shares in A Ltd to be held as an investment for $100,000 cash.
  7. Sold a long-term government bond, with a carrying amount of $45,000, for $56,000, including $5,000 accrued interest.
  8. Purchased shares in Rouge Ltd to be held as a long-term investment, paying $170,000 cash.
  9. Issued 7% debentures for $500,000
  10. Paid cash dividends of $60,000

Required:

  1. Prepare the net cash flow used in investing activities section of the statement of cash flows. Must show your calculations
  2. Prepare the net cash flow used in financing activities section on the statement of cash flows. Must show your calculations

Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies.

After making payment, solution is sent within 2 to 5 minutes on your Email ID. But it may take up to 1 hour in case of high load on server. Solution is available in Word or Excel format unless otherwise specified.

-----------------------------------------------------------------------------------------------------------------------------

If your question is slightly different from the above question, please contact us at info@myassignmentguru.com with your version of question.