Q4: The Statement of Financial Position date (i.e., the year-end
date) for Company AB is 31...
Q4: The Statement of Financial Position date (i.e., the year-end
date) for Company AB is 31 December 2018. The financial accounts
for Company AB were approved on 1 March 2019. On 1 February 2019, a
major customer of Company AB, announced that they were bankrupt and
could not pay the huge amounts they owed to Firm AB
For Company AB for the financial year-ended 31 December 2018
this event:
Select one:
a. Is not an adjusting event
b. Is an...
Each of the following events occurred after the reporting date
of 31 March 2019, but before...
Each of the following events occurred after the reporting date
of 31 March 2019, but before the financial statements were
authorised for issue.
Which would be treated as a NON-adjusting event
under IAS 10 Events after the Reporting
Period?
The settlement of an insurance claim for a loss sustained in
December 2018
A public announcement in April 2019 of a formal plan to
discontinue an operation which had been approved by the board in
February 2019
Evidence that £20,000 of...
Following is the statement of financial position of Niraula
Company Ltd. in Nepal at December 31,...
Following is the statement of financial position of Niraula
Company Ltd. in Nepal at December 31, 2018. Determine the current
ratio of Niraula Company Ltd. at the end of 2018 and give your
evaluation on the company’s short-term liquidity. (Currency in
thousand Rs, Nepalese rupee) (20%)
Niraula Company Ltd.
Statement of Financial Position
December 31, 2018
Intangibles and other assets
Rs 530
Property, plant, and equipment
420
Investments
10
Current assets...
The following transactions occurred during December 31, 2018,
for the Falwell Company. 1. A three-year fire...
The following transactions occurred during December 31, 2018,
for the Falwell Company. 1. A three-year fire insurance policy was
purchased on July 1, 2018, for $14,760. The company debited
insurance expense for the entire amount. 2. Depreciation on
equipment totaled $14,000 for the year. 3. Employee salaries of
$20,500 for the month of December will be paid in early January
2019. 4. On November 1, 2018, the company borrowed $270,000 from a
bank. The note requires principal and interest at...
The financial statements of BARYL BHD for the financial year
ended on 31 December 2019 has...
The financial statements of BARYL BHD for the financial year
ended on 31 December 2019 has been authorised for issue to the
board of directors on 15 February 2020. The followings are events
occurred after the reporting period.
(A) A decline of fair value in quoted shares on 12 February 2020
from RM70,000,000 to RM40,000,000.
Required:
(i) Classify each of the event as adjusting or unadjusting
event.
(ii) Explain how each event should be treated in the financial
statements 2019.
You are the CFO of Jordan company. The year-end of Jordan is 31
March. The CEO...
You are the CFO of Jordan company. The year-end of Jordan is 31
March. The CEO of Jordan company informed you that the company
intends to open a new branch in the next few weeks. The company has
spent a substantial sum on a series of television advertisements to
promote this new branch. The company paid for advertisements
costing JOD 1,500,000 before 31 March 2018. JOD 900,000 of this sum
relates to advertisements shown before 31 March 2018 and JOD...
Randolph Ltd has a tax expense of £77,000 in the Income
Statement for the year ended...
Randolph Ltd has a tax expense of £77,000 in the Income
Statement for the year ended 31 December 2019. In the Statement of
Financial Position, tax payable was £70,000 for the year ended 31
December 2018 and £79,800 for the year ended 31 December 2019.
What amount will appear as tax paid in the Statement of cash
flows for the year ended 31 December 2019?
a. £79,800
b. £77,000
c. £70,000
d. £67,200
On October 6, 2018, the Elgin Corporation signed a purchase
commitment to purchase inventory for $96,000...
On October 6, 2018, the Elgin Corporation signed a purchase
commitment to purchase inventory for $96,000 on or before March 31,
2019. The company's fiscal year-end is December 31. The contract
was exercised on March 21, 2019, and the inventory was purchased
for cash at the contract price. On the purchase date of March 21,
the market price of the inventory was $66,000. The market price of
the inventory on December 31, 2018, was $80,000. The company uses a
perpetual...
Financial data for Bingham Company for last year appear
below:
Bingham Company
Balance Sheet
For the...
Financial data for Bingham Company for last year appear
below:
Bingham Company
Balance Sheet
For the years ended Dec 31 2018 and 2019
ASSETS
Dec 31, 2018
Dec 31, 2019
Cash
135,000
266,000
Accounts Receivable
225,000
475,000
Inventory
314,000
394,000
Plant+Equipment (net)
940,000
860,000
Investment in Carr Corp.
104,000
101,000
Land
198,000
65,000
Total Assets
1,916,000
2,161,000
LIABILITIES + EQUITY
Accounts Payable
88,000
119,000
Long-Term Debt
585,000
665,000
Owner’s equity
1,243,000
1,377,000
Total Liabilities + Equity
1,916,000
2,161,000
Bingham Company...