Sridhar is concerned about his company’s cash problem. From the following balance sheets and summary income statement‚ prepare a cash flow statement for the year ended December 31‚ 2009. BALANCE SHEETS at December 31‚ 2008 and 2009 2009 2008 Rs. Rs Rs. Rs. Equity Share capital 60‚000 50‚000 Retained earnings 96‚000 60‚000 Total equity 156‚000 110‚000 Non-current liabilities Mortgage loan 35‚000 40‚000 Current
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Learning Task Number Four The Henry Furniture Co. is a new company and has numerous fixed assets that need to be depreciated. You can help Henry by determining the depreciation rates for the assets and the amount of depreciation for year one. The assets were purchased at various times during the year (hint: watch out for the dates). The following assets will be held by the company for at least the next two years (In other words‚ year two will be a full year for all of the assets). Please fill
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Case 8-29 1. a. Sales budget: April May June Quarter Budgeted sales in units 35‚000 45‚000 60‚000 140‚000 Selling price per unit × $8 × $8 × $8 × $8 Total sales $280‚000 $360‚000 $480‚000 $1‚120‚000 b. Schedule of expected cash collections: February sales $ 48‚000 $ 48‚000 March sales 112‚000 $ 56‚000 168‚000 April sales 70‚000 140‚000 $ 70‚000 280‚000 May sales 90‚000 180
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Accounting concepts and conventions [pic] Going concern This concept is the underlying assumption that any accountant makes when he prepares a set of accounts. That the business under consideration will remain in existence for the foreseeable future. In addition to being an old concept of accounting‚ it is now‚ for example‚ part of UK statute law: reference to it can be found in the Companies Act 1985. Without this concept‚ accounts would have to be drawn up on the ’winding up’ basis
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Glasson Holding Ltd is a group of companies. Use the financial report to identify 3 companies in the group. The three companies are: Hallenstein Bros Limited Hallenstein Properties Limited Glassons Limited. Question 4: a) What is meant by the accounting term "consolidation"? Consolidation means combining two or more organizations fund‚ etc into one. b) Explain briefly how it will apply with the Hallenstein group of companies. This will apply with the Hallenstein group of companies because there
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Purchase Method of Accounting All business combinations must be accounted for by applying the purchase method. This involves 3 key steps: a) Identifying an acquirer‚ b) Measuring the cost of the business combinations and c) Allocating the cost of the business combination to the identifiable assets and liabilities acquired. a) Identifying the Acquirer The acquirer should be identified for all business combinations‚ The acquirer is the entity which obtains controls over the other entity‚ There
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EASY 1. Which of the following is an appropriate combination of a biological asset and its agricultural produce? Biological assets Agricultural produce A. Sheep Yarn B. Trees in plantation forest Logs C. Dairy cattle Butter D. Pigs Carcass 2. Apportionment of the purchase price in a lump sum acquisition of different assets is based on all of these‚ except A. Book values of the assets to the seller B. Relative market values C. Tax assessment values D.
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GUIDE ACCOUNTING BASICS CONCEPTS‚ PRINCIPLES & BASIS A. Entity Concept • An organization stands apart from other organizations as a separate economic unit B. Going Concern Concept • Entity will continue to operate long enough to recover cost of its assets C. Time Period Concept • Report information at regular intervals D. Reliability Principle • Accounting records must be based on the most reliable (verifiable by an independent observer) data available E. Cost Principle • Assets/services
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Chapter 7 Reflection Paper Financial Accounting Buildings‚ machinery‚ equipment‚ furniture‚ fixtures‚ computers‚ cars and trucks are examples of assets that will last for more than one year‚ but will not last indefinitely. These are some examples of long-lived non-monetary assets. When these assets were acquired‚ the company has made an expenditure. If the company will benefit in the curret period‚ the cost of the goods are expenses. If the benefits are expected in future periods‚ the costs are
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check no. 389 for rent: check was written in the amount of $1‚320‚ but was recorded improperly in the accounting records as $1‚230. • Outstanding checks‚ $???? What is the total amount of outstanding checks at January 31? a. $1‚048 b. $868 c. $1‚900 d. $1‚720 5. Assuming a single journal entry is made to adjust Quinn Company’s accounting records at January 31‚ the journal entry includes: a. A debit to Rent Expense for $90.
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