Accounting Question
Assignment 01 (10%) (CHAPTER 04) Dear Student, Please keep in mind the following while doing the assignment 1. This assignment is worth 10% of your total assessments. This is a group assignment. 2. Hard copies are not accepted. One group member uploads the answer on the Blackboard. Your answer must be neat, organized, and clear. 3. The link will not be available to you after 11:59pm on Wednesday. March 13rd 2024. No requests for an extension of the deadline will be entertained. You have unlimited attempts. 1. The trial balance of Brothers Ltd included the following accounts as of December 31, 2023: Dr. Sales revenue Interest revenue Gain on sale of investments Loss on flood Cost of goods sold Salaries and wages Write-off Inventory Depreciation expense Interest expense Marketing and administrative Cr. $1,800,000 80,000 50,000 300,000 $1,100,000 220,000 30,000 150,000 40,000 50,000 Brothers Ltd had 100,000 shares outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30% Required: Prepare a multiple-step income statement with earnings per share disclosure. Multiple step income statement. 2. The chief accountant for Ahmad Co. provides you with the company’s most recent income statement and comparative statements of financial position below. (5 marks) Sales revenue Cost of goods sold Operating expenses Depreciation expense loss on disposal of equipment Interest expense Income before income tax Income tax expense Net Income Assets Current assets Cash Accounts receivable Inventory Prepaid expenses property, plant and equipment Land Building Accumulated depreciation – Building Equipment Accumulated depreciation – Equipment Total assets Liabilities and stockholder equity Accounts payable Income taxes payable Long-term liabilities Bonds Stockholders’ equity Ordinary share capital Retained earnings Total liabilities and shareholders 760,500 225,000 166,500 13,500 4,500 63,000 472,500 288,000 70,500 217,500 Dec.31.2021 Dec.31.2020 82,500 30,000 22,500 7,500 195,000 240,000 (16,500) 40,500 (4,500) $597,000 49,500 45,000 15,000 1,500 30,000 60,000 (7,500) 15,000 (1,500) $207,000 2,000 9,000 195,000 105,000 246,000 $597,000 18,000 12,000 30,000 75,000 72,000 $207,000 Additional information: 1. The company sold equipment with a book value of $10,500 (cost $12,000, less accumulated depreciation $1,500) for $6,000 cash. 2. Issued $165,000 of long-term bonds in direct exchange for land. 3. A building costing $180,000 was purchased for cash. Equipment costing $37,500 was also purchased for cash. 4. Issued common stock for $30,000 cash. Required: Prepare a statement of cash flows for 2021 using the indirect method. Assume that dividends paid are classified as financing cash flows. Statement of Cashflow
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