Question # 6 Waqar is a sole trader. He provides the following financial information in respect of his business. Income statement for the year ended 31 December 2019 Sales 3380000 Cost of sales (2000000) Expenses (1200000) Profit for the year 180000 Statements of financial position at: 31 December 201831 December 2019 Non-current assets Freehold land 2000000 3500000Plant and machinery at cost900000 1020000 Less: depreciation(500000) (470000) Net book value 400000 550000 2400000 4050000Current assets Inventory 310000 320000Trade receivables 240000 210000Cash and cash equivalents 10000 - 560000 530000 Current liabilities Trade payables 200000 160000Bank overdraft - 530000 200000 690000 Non-current liability – loan 500000 350000Net assets 2260000 3540000Additional information Additional Information:Drawing is $400During the year Winston purchased new plant at a cost of $200 000. He also sold some plant that had a net book value of $20 000 and had been depreciated by $60 000. This resulted in a loss on disposal of $2000. REQUIRED Prepare a statement of cash flows for the year ended 31 December 2019.

The statement of cash flows, or the cash flow statement, is a financial statement that summarizes…

Answered: Prepare a statement of cash flows for…

Business

Accounting

Prepare a statement of cash flows for the year ended 31 December 2019.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 80.1C

See similar textbooks

Similar questions

Question # 6 Waqar is a sole trader. He provides the following financial information in respect of his business. Income statement for the year ended 31 December 2019 Rs 000 Sales 3380 Cost of sales (2000) Expenses (1200) Profit for the year 180 Statements of financial position at: 31 December 2018 31 December 2019 Rs 000 Rs 000 Rs 000 Rs 000 Non-current assets Freehold land 2000 3500 Plant and machinery at cost 900 1020 Less: depreciation (500) (470) Net book value 400 550 2400…
Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse several years ago for $89,000, and it has claimed $24,400 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: A. Assuming that Hauswirth receives $80,600 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. B. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $80,600, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. C. Assuming that Hauswirth receives $35,500 in cash in year 0 and a $81,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. c
I need to know how to calculate the gain on the equipment sold in part C The balance sheets of HiROE Inc. showed the following at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Equipment, less accumulated depreciation of $212,625 at December 31, 2020, and $151,875 at December 31, 2019. $ 273,375 $ 334,125 Required: If there have not been any purchases, sales, or other transactions affecting this equipment account since the equipment was first acquired, what is the amount of the depreciation expense for 2020? Assume the same facts as in part a, and assume that the estimated useful life of the equipment to HiROE Inc., is eight years and that there is no estimated salvage value. Determine: What the original cost of the equipment was. What depreciation method is apparently being used. When the equipment was acquired. Assume that this equipment account represents the cost of 5 identical machines. Prepare the horizontal model and record the journal…
Question 1 1. Justin is the sole trader of DMK Trading who maintains his non-current assets at cost. On 1 January 2021, he owned the following non-current assets which had been depreciated on a monthly basis. Non-Current Cost Accumulated Depreciation Rate Assets Depreciation RM RM % Premise 420,000 63,000 15% on cost Motor vehicle 115,500 16,700 10% on cost Office equipment 12,000 1,200 5% on cost Current assets Bank 150,000 The accounting year end for the business is on 31 December every year. During the year ended 31 December 2021, the following transactions occurred: i. On 1 July 2021, the company purchase a new motor vehicle of RM65,000 on credit from Nissan Sdn Bhd. ii. The business also renovated the premise. A total cost of RM45,000 was paid by issuing a cheque on 1 January 2021. You are required to show the following for the year ended 31 December 2021 Prepare journal entries for the transaction in i and ii. (a) (b) Non-current assets account. Show your working. (b) Accumulated…
Question 3 Watson is a sole trader. He provides the following financial information in respect of his business. Income statement for the year ended 31 December 2012 $000 Sales 3380 Cost of sales Expenses Profit for the year (2000) (1200) 180 Statements of financial position at: 31 December 31 December 2011 2012 $00 $000 $00 $000 Non-current assets Freehold land Plant and machinery at cost Less: depreciation 2000 3500 900 1020 (500) (470) Net book value 400 2400 550 4050 Current assets Inventory Trade receivables Cash and cash equivalents 310 320 240 210 10 560 530 Current liabilities Trade payables 200 160 Bank overdraft 530 200 690 Non-current liability – loan 500 350 Net assets 2260 3540 Additional information 4. Drawing is $400 5. During the year Winston purchased new plant at a cost of $200 000. He also sold some plant that had a net book value of $20 000 and had been depreciated by $60 000. This resulted in a loss on disposal of $2000. REQUIRED (a) Prepare a statement of cash…
classify the given items as (operating / investing / financing), share the correct classification with logical reasoning Loss on sale of asset 95780 dividend income 26000 interest income 35000 finance cost paid on debentures 12000 gain on sale of investment 45000 Depreciation on fixed assets 85000 Amortisation Expenses 110000
Question The financial statements of Harry Ltd and its subsidiary Olivia Ltd have been extracted from their financial records at 30 June 2023 and are presented below. Harry Ltd$ Olivia Ltd$Sales 839 250 725 000Cost of goods sold (580 000) (297 500)Gross profit 259 250 427 500Dividends received 116 250 -Management fee revenue 33 125 Gain on sale of plant 43 750 Less Expenses Administration (38 500) (48 375)Depreciation (30 625) (71 000)Management fee - (33 125)Other expenses (126 375) (96 250)Profit before tax 256 875 178 750Tax expense (76 875) (52 750)Profit after tax 180 000 126 000Retained earnings 1 July 2022 399 250 299 000 579 250 425 000Dividends paid (171 750) (116 250)Retained earnings 30 June 2023 407 500 308 750 Statement of financial position Harry Ltd$ Olivia Ltd$Shareholders’ equity Retained earnings 407 500 308 750Share capital 437…
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000
The following information is for Swifty Real Estate: SwiftyReal EstateBalance SheetDecember 31, 2020 Cash $ 25500 Accounts Payable $ 60500 Prepaid Insurance 29700 Salaries and Wages Payable 15100 Accounts Receivable 50600 Mortgage Payable 84500 Inventory 68600 Total Liabilities 160100 Land Held for Investment 83500 Land 120600 Buildings $98100 Less Accumulated Depreciation Owner's Capital 366400 (19600) 78500 Trademark 69500 Total Liabilities and Owner’s Equity Total Assets $526500 $526500 The total dollar amount of liabilities to be classified as current liabilities is $160100. $15100. $60500. $75600.
Company B's December 31 Year-End Balance Sheet reveals the following: • December 31, 2020 net PPE of $865 • December 31, 2020 Accumulated Depreciation of $250 • December 31, 2021 net PPE of $770 • December 31, 2021 Accumulated Depreciation of $230 • Annual 2021 Depreciation Expense was $100 • During 2021, PPE was purchased for $560; all PPE purchases are made in cash. • During 2021, the gain of the sale of PPE was $20 What is the journal entry Company B recorded to recognize 2021 depreciation expense? Dr. Accumulated Depreciation $20 Cr. Depreciation Expense $20 Dr. Depreciation Expense $100 Cr. Accumulated Depreciation $100 Dr. Depreciation Expense $20 Cr. Accumulated Depreciation $20 Dr. Depreciation Expense $100 Cr. PPE $100
† Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed. Construct an income statement for Fincorp for 2021 and 2022. Note: Enter your answers in thousands of dollars. Fincorp Incorporated Income Statement 2021 2022 Revenue Administrative expenses Depreciation expense $ 4,000 $ 4,100 500 550 500 520 Interest expense 150 150 Cost of goods sold 1,600 1,700 Taxable income 1,250 1,180 Federal and state taxes 400 420 Net income $ 850 10 $ 760 What were reinvested earnings for 2022? Note: Enter your answer in thousands of dollars. Reinvested earnings
statement of cash flow 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Cash flows from operating activities Profit before income tax 32,548 35,430 11,576 Adjustments for: - Depreciation 56,108 58,326 54,759 - Amortisation 1,185 971 563 - Loss/(profit) on disposal of property, plant and equipment 2,242 (9) (566) - Impairment charge 1,110 534 43 - Finance cost 19,579 19,392 30,724 - Finance income (2,245)…

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business


Sales		3380000
Cost of sales		(2000000)
Expenses		(1200000)
Profit for the year		180000
Statements of financial position at:
	31 December 2018	31 December 2019

Non-current assets
Freehold land		2000000	3500000
Plant and machinery at cost	900000					1020000
Less: depreciation	(500000)			(470000)
Net book value		400000	550000
		2400000	4050000
Current assets
Inventory		310000		320000
Trade receivables		240000	210000
Cash and cash equivalents		10000	-
		560000		530000
Current liabilities
Trade payables		200000	160000
Bank overdraft		-			530000
		200000	690000
Non-current liability – loan		500000	350000
Net assets		2260000	3540000
Additional information

REQUIRED
Prepare a statement of cash flows for the year ended 31 December 2019.