Beruflich Dokumente
Kultur Dokumente
Requirement (a):
Lunch Co.
Statement of profit or loss and other comprehensive income
For the year ended December 31, 20x1
Note
s
22,000,00
Sales 0
(6,000,000
Cost of goods sold 12 )
16,000,00
Gross profit 0
(2,230,000
Distribution costs 13 )
(3,050,000
Administrative expenses 14 )
Impairment loss on financial assets (190,000)
Finance costs (340,000)
10,190,00
Profit before tax 0
(2,000,000
Income tax expense )
Profit for the year 8,190,000
1
Other comprehensive income
Items that will not be reclassified subsequently:
Investments in equity instruments 200,000
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges 30,000
Other comprehensive income for the yr., net of
tax 230,000
Requirement (b):
2
PROBLEM 3: EXERCISE
1. Solutions:
Requirement (a):
Dinner Co.
Statement of profit or loss and other comprehensive income
For the year ended December 31, 20x1
Note
s
16,800,00
Sales 0
(8,390,000
Cost of goods sold 12 )
Gross profit 8,410,000
(3,090,000
Distribution costs 13 )
(2,910,000
Administrative expenses 14 )
Impairment of property, plant and equipment (290,000)
Finance costs (280,000)
Profit before tax 1,840,000
Income tax expense (552,000)
Profit for the year 1,288,000
Other comprehensive income
Items that will not be reclassified subsequently:
Revaluation decrease during the period (120,000)
Items that may be reclassified subsequently to profit or loss:
Translation gain on foreign operation 25,000
Other comprehensive income for the yr., net of
tax (95,000)
Requirement (b):
3
Total goods available for sale 8,770,000
Ending inventory (380,000)
Cost of goods sold 8,390,000
4
PROBLEM 4: CLASSROOM ACTIVITIES
1. Solutions:
Requirement (a):
5
Requirement (b):
2. Solutions:
Requirement (a):
6
Dividend income 90,000
Sh. in the profit of associate 100,000
(1M x 30% x 4/12)
Sh. in revaluation increase 36,000
(120,000 x 30%)
Requirement (b):
Buddies Co.
Statement of profit or loss and other comprehensive income
For the year ended December 31, 20x1
7
loss:
3. Solutions:
Requirement (a):
(a) No entry
(DIT and OC are bank reconciling items;
not book)
(b) No entry
8
Proof:
SYD denominator = 5 x [(5+1) ÷ 2] = 15
Depreciation, 20x0 = (1.4M – 200K) x 5/15 = 400,000
Depreciation, 20x1 = (1.4M – 200K) x 4/15 = 320,000
(5)
The issue price of the bonds is computed as follows:
Cash flows PVF PV
4,736,64
P: 8,000,000 PV of 1 @14%, n=4 0.59208 0
PV ord. annuity @14%, 2,330,96
i: 800,000 n=4 2.91371 8
7,067,60
8
(6)
Partial amortization table:
Payment Int. Amort
Date s expense . Present value
1/1/x1 7,067,608
12/31/x 189,46
1 800,000 989,465 5 7,257,073
9
The balance of the “interest payable” on the trial balance is tested for its
Nominal
Face amount rate Interest payable
Adjustment -
Requirement (b):
COLLEAGUES CO.
STATEMENT OF FINANCIAL POSITION
AS OF DECEMBER 31, 20X1
Note
ASSETS s
Current assets:
10
4
Cash and cash equivalents 6,017,608
5
Trade and other receivables 2,980,000
Inventories 2,608,000
Noncurrent assets:
Noncurrent liabilities:
11
Noncurrent portion of loans payable - net 1,600,000
12
Bonds payable - net 7,257,073
TOTAL LIABILTIES
11
12,107,073
Equity:
(1)
Ret. earnings unadjusted bal. 4.544M + adjusted profit after tax 1,679,675
= 6,223,675
Requirement (c):
COLLEAGUES CO.
STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED DECEMBER 31, 20X1
NOTE
S
Sales 16,800,000
Cost of sales (7,200,000)
Gross profit 9,600,000
Distribution costs 13 (2,424,000)
Administrative expenses 14 (3,755,000)
Finance costs (1,121,465)
Unrealized gain on investment property 100,000
Profit before tax 2,399,535
Income tax expense (719,861)
Profit for the year 1,679,675
COLLEAGUES CO.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 20X1
NOTE
S
Profit for the year 1,679,675
Other comprehensive income:
Items that will not be reclassified subsequently:
Investment in equity securities 260,000
Items that may be reclassified subsequently to profit or -
12
loss:
Other comprehensive income for the year, net of tax 260,000
Requirement (d):
Land 1,600,000
Building 4,500,000
Accumulated depreciation - Bldg. (855,000)
Equipment 1,400,000
Accumulated depreciation - Equipt. (720,000)
Property, plant and equipment 5,925,000
Patent 900,000
Accumulated amortization (30,000)
Intangible assets 870,000
13
Note 8: Other noncurrent assets
This line item consists of the following:
14
This line item consists of the following:
3. A
Solution:
Actuarial gain or loss on defined benefit plan (6,000)
Unrealized gain on FVOCI securities 30,000
Reclassification adjustment for cumulative gain on
translation of foreign operation included in profit or loss (5,000)
154,00
Profit for the year
0
15
173,00
Total comprehensive income 0
4. C
Solution:
5. A
Solution:
250,00
Contribution to youth and educational programs 0
140,00
Contribution to health and human-service organizations 0
(80,000
Contribution shouldered by employees )
310,00
Charitable contributions expense 0
6. A
Solution:
Finished goods
Jan. 1 400,000
Cost of
COGM (squeeze) 200,000 240,000 sales
360,000 Dec. 31
16
8. A
Solution:
Advertising 150,000
Freight-out
80,000
Rent for office space (220,000 x 1/2) 110,000
Sales salaries and commissions 140,000
Total selling expenses
480,000
9. A
Solution:
Accounting and legal fees 25,000
Officers’ salaries
150,000
Insurance 85,000
17