O'Hara Pan Enterprise is a retailer of kitchen items like cabinets, pots, pans etc. It is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
O'Hara Pan Enterprise is a retailer of kitchen items like cabinets, pots, pans etc. It is owned by Ann-Kam Eng. Besides sales, it conducts healthy cooking lessons. O'Hara Pan's assets and liabilities at respective year end (31 March) were as follows: Accum, depreciation - Building Accum, depreciation - Fixtures & Fittings Accum, depreciation - O/Equipment Allowance for doubtful debts Building improvements Cash at bank Customers on account balance Fixed deposit account balance Fixtures & Fittings Land and building (Land cost RM70,000) Office equipment Other payables (Building improvements) Petty cash Repairs and maintenance expense unpaid Salaries and employee benefits Suppliers on account balance Transport expenses paid in advance Unexpired insurance Unsold goods in hand Unused supplies in hand Collection from cooking lessons Contribution by owner 2021 Loan payable Receipts from customers on account RM 12,000 9,000 9,500 1,000 10,000 33,000 16,000 220,000 19,500 100 1,000 7,000 21,000 15,000 18,000 20,000 1,500 2022 RM 16,000 10,800 13,000 1,500 (14,000) 44,000 16,000 220,000 32,000 25,000 200 2,000 6,000 32,000 28,800 15,200 35,000 3,000 2023 RM ?? 13,800 ?? ?? 50,000 ?? O'Hara Pan's cash at bank summary for the year ended 31 March 2023, is as follows: Receipts RM Cash sales 44,000 33,000 99,000 220,000 550,000 55,000 15,000 36,000 220.000 32,000 50,000 500 3,000 5,000 20,000 18,000 10,200 27,000 4,500 Payments Drawings by owner Fixed deposit account Fixtures & fittings Freight charges Local council rates Miscellaneous expenses Payment to suppliers for goods Petty cash Repairs and maintenance Salaries and employee benefits Supplies RM 120,000 15,000 20,000 44,000 7,700 13,300 166,000 300 11,100 55,000 26,600 O'Hara Pan also provided the following additional information: 1. Two cheques amounting RM24,000 and RM10,000 received from two credit customers Linda and Kunda respectively during the final week of March 2023. They were deposited into the business bank account on 30 March 2023 but did not appear on the bank statement for March 2023. 2. One cheque amounting to RM8,800 was returned by the bank stating, 'Refer to the Drawer'. 3. Three cheques for RM1,100 (Cheque No. 12345), RM2,200 (Cheque No. 12355) and RM4,400 (Cheque No. 12361) were issued by O'Hara Pan in February and March 2023 were not paid by the bank. 4. The bank statement had the following items but were not in the cash at bank summary above. 1. 11. iii. IV. 5. The bank statement also showed a cheque for RM7,777 issued by Bah Ree San Trading, (another client of the bank) was debited. O'Hara Pan has notified the bank of this error. iv. Received a credit transfer of RM14,500 for cooking lessons to be provided for the University staff in May 2023 6. The bank loan was taken on 1 January 2023 at an interest rate of 5% per annum. Interest is payable quarterly beginning 1 April 2023. Also, 10% of the loan is repayable half yearly beginning 1 July 2023. 7. For the year ended 31 March 2023, the following summary were also provided: 1. Total value of goods returned by customers on account was RM10,000 Total value of goods returned to suppliers on account was RM11,000 ii. iii. Total value of settlement discount from suppliers on account as shown on the payment receipts received RM5,250 Total value of settlement discount claimed by customers on account as shown on the receipts issued RM2,320 10% from the 'receipts from customers on account were received for cooking lessons conducted. V. Bank charges amounted to RM111 Interest income on fixed deposit account RM1,000 Standing instruction for insurance RM36,000 vi. Quantity discount received from credit suppliers were RM11,000 and quantity discount allowed to credit customers were RM22,000. 8. Bee Anne is a credit supplier as well as a credit customer of O'Hara Pan. During the year, a memo was prepared to indicate that both Bee Anne and O'Hara Pan agreed to offset contra their owing. O'Hara Pan owed Bee Anne RM12,000 while Bee Anne owed O'Hara Pan RM12,345. A cheque was received from Bee Anne for the difference and banked in. 9. Pea Ann and Beh Buz are O'Hara Pan's customers on account, owing RM9,000 and RM7,000 respectively. Both became insolvent. On 31 March 2022, 40% of the debt (a) (b) (c) (d) (e) (f) owed by Pea Ann and 70% of the debt owed by Beh Buz, were written off as uncollectible. The remaining debt was collected, recorded and banked in. 10. 50% of freight charges expense was related to freight on delivering goods to customers. 11. The bad debts expense for the year ended 31 March 2022 is estimated to be 2% of the net credit sales (round up to the nearest RM). 12. The cooking lessons were carried out in a rented kitchen next door. Hence an improvement was done to the existing building to accommodate a new kitchen. It was completed on 31 December 2022. (h) (i) 13. Other payables of RM25,000 was paid during the year but it was not recorded in the books. 14. The depreciation is 2% per annum and (on cost) of building, 5% per annum on building improvements and 10% per annum (on carrying amount) of office equipment. #Note: In answering the following questions, students must use the appropriate terms for the items to be presented on the financial statements. REQUIRED: 15. Unsold goods in hand at 31 March 2023, included some 'slow moving' goods costing RM10,000; but the net realisable value of that goods was RM11,000. Accounts receivable control account for the year ended 31 March 2023; Accounts payable control account for the year ended 31 March 2023; Updated cash at bank summary for the year ended 31 March 2023; Bank reconciliation statement as at 31 March 202; The Income statement for O'Hara Pan for the year ended 31 March 2023; The Statement of changes in equity for the year ended 31 March 2023; The Balance Sheet as at 31 March 2023; [40] The Statement of cash flows for the year ended 31 March 2023. The owner of O'Hara Pan, does not understand why the profit or loss for the year is not same as the cash at bank balance. Ann Van Eng also does not understand the statement of cash flows in (h). Explain to the owner. (Word limit: Max 500 words) [20] (j) For the year ended 31 March 2022, calculate all the (20) ratios as in the appendix; O'Hara Pan Enterprise is a retailer of kitchen items like cabinets, pots, pans etc. It is owned by Ann-Kam Eng. Besides sales, it conducts healthy cooking lessons. O'Hara Pan's assets and liabilities at respective year end (31 March) were as follows: Accum, depreciation - Building Accum, depreciation - Fixtures & Fittings Accum, depreciation - O/Equipment Allowance for doubtful debts Building improvements Cash at bank Customers on account balance Fixed deposit account balance Fixtures & Fittings Land and building (Land cost RM70,000) Office equipment Other payables (Building improvements) Petty cash Repairs and maintenance expense unpaid Salaries and employee benefits Suppliers on account balance Transport expenses paid in advance Unexpired insurance Unsold goods in hand Unused supplies in hand Collection from cooking lessons Contribution by owner 2021 Loan payable Receipts from customers on account RM 12,000 9,000 9,500 1,000 10,000 33,000 16,000 220,000 19,500 100 1,000 7,000 21,000 15,000 18,000 20,000 1,500 2022 RM 16,000 10,800 13,000 1,500 (14,000) 44,000 16,000 220,000 32,000 25,000 200 2,000 6,000 32,000 28,800 15,200 35,000 3,000 2023 RM ?? 13,800 ?? ?? 50,000 ?? O'Hara Pan's cash at bank summary for the year ended 31 March 2023, is as follows: Receipts RM Cash sales 44,000 33,000 99,000 220,000 550,000 55,000 15,000 36,000 220.000 32,000 50,000 500 3,000 5,000 20,000 18,000 10,200 27,000 4,500 Payments Drawings by owner Fixed deposit account Fixtures & fittings Freight charges Local council rates Miscellaneous expenses Payment to suppliers for goods Petty cash Repairs and maintenance Salaries and employee benefits Supplies RM 120,000 15,000 20,000 44,000 7,700 13,300 166,000 300 11,100 55,000 26,600 O'Hara Pan also provided the following additional information: 1. Two cheques amounting RM24,000 and RM10,000 received from two credit customers Linda and Kunda respectively during the final week of March 2023. They were deposited into the business bank account on 30 March 2023 but did not appear on the bank statement for March 2023. 2. One cheque amounting to RM8,800 was returned by the bank stating, 'Refer to the Drawer'. 3. Three cheques for RM1,100 (Cheque No. 12345), RM2,200 (Cheque No. 12355) and RM4,400 (Cheque No. 12361) were issued by O'Hara Pan in February and March 2023 were not paid by the bank. 4. The bank statement had the following items but were not in the cash at bank summary above. 1. 11. iii. IV. 5. The bank statement also showed a cheque for RM7,777 issued by Bah Ree San Trading, (another client of the bank) was debited. O'Hara Pan has notified the bank of this error. iv. Received a credit transfer of RM14,500 for cooking lessons to be provided for the University staff in May 2023 6. The bank loan was taken on 1 January 2023 at an interest rate of 5% per annum. Interest is payable quarterly beginning 1 April 2023. Also, 10% of the loan is repayable half yearly beginning 1 July 2023. 7. For the year ended 31 March 2023, the following summary were also provided: 1. Total value of goods returned by customers on account was RM10,000 Total value of goods returned to suppliers on account was RM11,000 ii. iii. Total value of settlement discount from suppliers on account as shown on the payment receipts received RM5,250 Total value of settlement discount claimed by customers on account as shown on the receipts issued RM2,320 10% from the 'receipts from customers on account were received for cooking lessons conducted. V. Bank charges amounted to RM111 Interest income on fixed deposit account RM1,000 Standing instruction for insurance RM36,000 vi. Quantity discount received from credit suppliers were RM11,000 and quantity discount allowed to credit customers were RM22,000. 8. Bee Anne is a credit supplier as well as a credit customer of O'Hara Pan. During the year, a memo was prepared to indicate that both Bee Anne and O'Hara Pan agreed to offset contra their owing. O'Hara Pan owed Bee Anne RM12,000 while Bee Anne owed O'Hara Pan RM12,345. A cheque was received from Bee Anne for the difference and banked in. 9. Pea Ann and Beh Buz are O'Hara Pan's customers on account, owing RM9,000 and RM7,000 respectively. Both became insolvent. On 31 March 2022, 40% of the debt (a) (b) (c) (d) (e) (f) owed by Pea Ann and 70% of the debt owed by Beh Buz, were written off as uncollectible. The remaining debt was collected, recorded and banked in. 10. 50% of freight charges expense was related to freight on delivering goods to customers. 11. The bad debts expense for the year ended 31 March 2022 is estimated to be 2% of the net credit sales (round up to the nearest RM). 12. The cooking lessons were carried out in a rented kitchen next door. Hence an improvement was done to the existing building to accommodate a new kitchen. It was completed on 31 December 2022. (h) (i) 13. Other payables of RM25,000 was paid during the year but it was not recorded in the books. 14. The depreciation is 2% per annum and (on cost) of building, 5% per annum on building improvements and 10% per annum (on carrying amount) of office equipment. #Note: In answering the following questions, students must use the appropriate terms for the items to be presented on the financial statements. REQUIRED: 15. Unsold goods in hand at 31 March 2023, included some 'slow moving' goods costing RM10,000; but the net realisable value of that goods was RM11,000. Accounts receivable control account for the year ended 31 March 2023; Accounts payable control account for the year ended 31 March 2023; Updated cash at bank summary for the year ended 31 March 2023; Bank reconciliation statement as at 31 March 202; The Income statement for O'Hara Pan for the year ended 31 March 2023; The Statement of changes in equity for the year ended 31 March 2023; The Balance Sheet as at 31 March 2023; [40] The Statement of cash flows for the year ended 31 March 2023. The owner of O'Hara Pan, does not understand why the profit or loss for the year is not same as the cash at bank balance. Ann Van Eng also does not understand the statement of cash flows in (h). Explain to the owner. (Word limit: Max 500 words) [20] (j) For the year ended 31 March 2022, calculate all the (20) ratios as in the appendix;
Expert Answer:
Answer rating: 100% (QA)
Answering OHara Pan Enterprise Financial Analysis Requirements a Accounts Receivable Control Account ... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 9781259917028
8th Edition
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
Posted Date:
Students also viewed these accounting questions
-
Explain what is Budget Surplus and Budget Deficit. Which budget should be used during the inflation crisis and why? Explain.
-
Umicore sells 9-year maturity semi-annual coupon bonds at 101.00% of par value. What is the coupon rate on these bonds if the yield to maturity is 8.60%? Question 6Answer a.4.38% b.10.51% c.8.76%...
-
The task is to apply the accounting principles and prepare a full set of annual report including Directors Report, Directors Declaration, Audit Report, Financial Statements (excluding Statement of...
-
Single PlantwideandMultiple Production Department Factory Overhead Rate Methodsand Product Cost Distortion Eclipse Motor Company manufactures two types of specialty electric motors, a commercial...
-
The rotor of an electric motor has rotational inertia Im = 2.0 x 10 3 kg m2 about its central axis. The motor is used to change the orientation of the space probe in which it is mounted. The motor...
-
A water tank filled with water to a depth of \(16 \mathrm{ft}\) has an inspection cover (1 in. \(\times 1\) in.) at its base, held in place by a plastic bracket. The bracket can hold a load of \(9...
-
Go to PWC.com, Deloitte.com, EY.com, or KPGM.com and search for "blockchain." Choose a topic and write about how the firm is using blockchain to help its clients.
-
Mismatch Manufacturing Company specializes in producing fashion outfits. On July 31, 2010, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory...
-
Assume the issuer incurs $ 1 million in other expenses to sell 3 million shares at $ 4 0 each to an underwriter and the underwriter sells the shares at $ 4 3 each. By the end of the first day s...
-
Portfolio return and standard deviation David Choo is thinking of building an investment portfolio containing two stocksH and G. He has assigned 40% of his portfolio to stock H and the remaining 60%...
-
Determine the probability. The serum cholesterol levels of a certain population of boys with a mean of 170 mg/dl and a standard deviation of 30 mg/dl. Determine the probability that the mean serum...
-
1.a) (4 marks)An oil slick 122 nm thick (n = 1.4), lying on water, is illuminated by white light incident, perpendicular to its surface. What color will the oil appear and calculate the wavelength.
-
Consider the following example:Ken is a process engineer for Stardust Chemical Corp., and he has signed a secrecy agreement with the firm that prohibits his divulging information that the company...
-
Given matrices and , compute and A 21 3 4 B = AB BA 5 2 23 51 13 Solve the system of equations: 2x + 3y = 7 4x-y = 5
-
The following two reactions take place in a gas phase reactor at 3000 K and 1 atmosphere pressure: 2CO 2 (g) 2CO(g) + O 2 (g) K eq .1071 O 2 (g) + N 2 (g) 2NO(g) K...
-
A tennis court is defined as having a length of 78', widths of 27' & 36' for a singles court and a doubles court respectively, a service box length of 21' and a net height 3' all the way across the...
-
If internal controls are ineffective, what wouldbe the most thorough means of evaluating the effectiveness of internal controls is by performing internal audits? What are internal audits are and...
-
Kenneth Hubbard has prepared the following list of statements about managerial accounting and financial accounting. 1. Financial accounting focuses on providing information to internal users. 2....
-
Recent research into the cost of various medical procedures has shown the impact of certain complications encountered in surgery on the total cost of a patients stay in the hospital. The researchers...
-
Williams Company is a manufacturer of auto parts having the following financial statements for 20182019. Required Calculate and interpret the financial ratios for Williams for both years. Because the...
-
Genova Company classifies its costs of quality into four categories. The costs of quality (COQ) as a percentage of cost of goods sold for the last three years are as follows: Required 1. Use a...
-
Use the balance sheet equation to determine the missing values below. Common Assets Liabilities Stock Retained Earnings 320,000 150,000 45,000 ? ? 75,000 30,000 40,000 250,000 90,000 ? 120,000...
-
The following data were obtained from the year-end financial statements of The Arcadia Company: Required Compute the following ratios for The Arcadia Company: (1) Return on Sales, (2) Return on...
-
The Arcadia Company was founded by Thomas Smith and began operations in July 2015 as a neighborhood hardware store, selling branded lawn and garden supplies, household products, and small tools. The...
Study smarter with the SolutionInn App