200109 Corporate Accounting Systems Spring 2020 Week 2 Homework Homework is collected for assessment purposes. Please submit it online in a single PDF file. If any additional pages are needed please ensure they are attached. Please type in your name and student ID in the spaces provided on each page in answer sheet. By signing your homework you are certifying that no part of your homework submission has been copied from any other student's work or directly from any other source (including the textbook) except where due acknowledgement has been made. Question 1 The information below was taken from the ledger accounts of Fantastic Food Ltd. FANTASTIC FOOD LTD 2019 Sales (on credit) Cost of goods sold Doubtful debts expense Rent expense Salaries expense Other expenses (including $4500 depreciation) Accounts receivable $86 500 Allowance for doubtful debts 4 500 Inventory 42 200 Prepaid rent 3 700 Accounts payable 40 500 Salaries payable 6 000 2020 $301 000 132 000 8 600 3 800 39 000 19 500 106 700 9 000 58 360 3 200 34 500 1 500 Required (1) Calculate the amount of cash collected from customers during 2020 by T-account. (2) Calculate the amount of cash paid to suppliers for purchases during 2020 by T-account. (3) Calculate the amount of cash paid to employees during 2020 by T-account. (4) Calculate the amount of cash paid for rent during 2020 by T-account. 1 Question 2 The comparative statements of financial position for the years 2019 and 2020 and a summarised income statement for the year ended 30 June 2020 are shown below (Ignore GST and Tax): GREENLAND LTD Comparative Statements of Financial Position as at 30 June 2019 ($'000) Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation - equipment Land Motor vehicles Accumulated depreciation - motor vehicles Total assets Liabilities Bank overdraft Accounts payable Long-term mortgage Total liabilities Net assets Equity Share capital Retained earnings Total equity 2020($'000) 4 290 6 000 300 19 200 (6 000) 20 400 14 550 (5 490) 53 250 1 540 3 150 6 600 360 25 500 (7 500) 24 000 15 600 (6 300) 62 950 300 6 150 14 100 20 550 32 700 7 950 18 900 26 850 36 100 26 700 6 000 32 700 26 700 9 400 36 100 GREENLAND LTD Income Statement for the year ended 30 June 2020 ($'000) Sales (on credit) Less: Cost of goods sold Gross profit Less: expenses (including depreciation) Profit 17 800 5 100 12 700 8 610 4 090 Additional information: Rent expense for the year ended 30 June 2020 is nil. All other expenses were paid in cash (excluding depreciation). The company declared and paid cash dividend. The bank overdraft was part of the entity's everyday cash management activities. Required Prepare a statement of cash flows using the direct method for the year ended 30 June 2020. 2