1. A company with share capital comprising 10,000 $2.50 shares engages in a 4-for-1 share split. After the share split the share capital of the company is:

Group of answer choices

a $25 000

b $31 250

c $125 000

d $100 000

2. Fleetwood Street Publishing Pty Ltd offers membership to all new subscribers at a cost of $900 per 12 months subscription. It is a condition of the 12 months subscription that the full amount of $900 is paid by the new subscriber and receipted by Fleetwood Street Publishing Pty Ltd at the time of issuance of the subscription. (Disregard GST). The balance day is 31 December 2020

A subscriber Ms. Lisa Ono paid $900 on 1 January 2020.

What account and amount would be reported in the Statement of Financial Performance (Income Statement) for Fleetwood Street Publishing Pty Ltd for the period ending 30 April 2020 if no prior adjustments have been made yet for this financial period?

Group of answer choices

a) Revenue: Publishing subscription revenue $300

b) Revenue: Publishing subscription revenue $75

c) Current liabilities: Publishing subscription revenue $600

d) Revenue: Unearned publishing subscription revenue $600

3. Wu-Ling Manufacturing as part of its customer service offers a warranty on all goods manufactured.

The entitys Provision for warranty as at 30 June 2019 was $18,000. During the financial year 1 July 2019 to 30 June 2020, Wu-Ling Manufacturing made sales of $2,000,000 and expects product warranties to cost 1.5% of sales at 30 June 2020. During the 2019 2020 financial year, Wu-Ling Manufacturing paid $25,000 for warranties. There was an increase in sales by 65% in the 2019 2020 financial year compare to the last financial year.

What is the journal entry to record the adjustment for the Provision for warranty at 30 June 2020 for Wu-Ling Manufacturing?

Group of answer choices

a) DR: Warranty expense $37,000, CR: Provision for Warranty $37,000

b) DR: Warranty expense $61,050, CR: Provision for Warranty $61,050

c) DR: Provision for Warranty $61,050, CR: Warranty expense $61,050

d) DR: Provision for Warranty $37,000, CR: Warranty expense $37,000

4. Which of the following statements regarding future profitability is true?

Group of answer choices

a The future profitability of the business is a common need for many users.

b Future profitability is disclosed within the statement of comprehensive income.

c Future profitability is certified as a true and fair amount within the auditors report.

d Future profitability is not relevant for any analysis as it cannot be determined with any accuracy.