Additional information 218. During the year, a bonus issue of 1 share for every 4 held (The parv alue of the shares outstanding is $1) at 1 January 20x9 followed by a rig ht issue on 5 February 20X9 at $1.2 each. - The company sold a machine with a NBV of $15,000 for $12,000. - A five years loan of $100,000 was raised on December 31, 20X8 wit h annual interest rate of 6%, and the interest expense has not been charg Required: 1. What is the definiton of asset, liablity and equity? What are the the relationship between them? (5 marks) ed. 2. What is the definition of inventory? What is the difference betwee n inventory and non-current tangible assets? Please provide an ex ample to caculate the cost of goods sold frome opening inventory \closing inventory. (10 marks) 3. Why does company provide depreciation expense for non-current tangible assets? (5 marks) 28 Fundamental Accounting ,: oversea stude nts 4. Calculate related ratios and common Alex Ltd's long-term and sh ort-term solvency (10 marks). 5. Calculate the Inventory turnover period, Receivables collection pe riod and Payables payment period and explain it's working capital c yde (10 marks). Additional information 218. During the year, a bonus issue of 1 share for every 4 held (The parv alue of the shares outstanding is $1) at 1 January 20x9 followed by a rig ht issue on 5 February 20X9 at $1.2 each. - The company sold a machine with a NBV of $15,000 for $12,000. - A five years loan of $100,000 was raised on December 31, 20X8 wit h annual interest rate of 6%, and the interest expense has not been charg Required: 1. What is the definiton of asset, liablity and equity? What are the the relationship between them? (5 marks) ed. 2. What is the definition of inventory? What is the difference betwee n inventory and non-current tangible assets? Please provide an ex ample to caculate the cost of goods sold frome opening inventory \closing inventory. (10 marks) 3. Why does company provide depreciation expense for non-current tangible assets? (5 marks) 28 Fundamental Accounting ,: oversea stude nts 4. Calculate related ratios and common Alex Ltd's long-term and sh ort-term solvency (10 marks). 5. Calculate the Inventory turnover period, Receivables collection pe riod and Payables payment period and explain it's working capital c yde (10 marks). 6. What are the differences between inventory's carriage inward and carriage outward when we include them into the statement of profit or loss? (8 marks) 7. 1 November A company values its inventory using the first in, first out (FIFO) method. At 1 May 20x2 the company had 700 engines in inventory, valued at $190 each. During the year ended 30 April 20x3 the following transactions took place: 20x2 1 July Purchased 500 engines at $220 each Sold 400 engines for $160,000 20x3 1 February Purchased 300 engines at $230 each 15 April Sold 250 engines for $125,000 What is the value of the company's closing inventory of engines at 30 April 20x3? $188,500 $195,500 $166,000 None of these figures Workings are needed.) A B D (2 marks) 8. To make double entries and show its capital structure following: (a) A '1 for 4' bonus issue (b)A rights issue of 'l for 5' at $1.2 following the bonus issue, assuming all rights taken up (10 marks) 9. To make double entries for the machine disposed (5 marks). 10. To make double entries for the loan interest required (5 marks). 11. To prepare the statement of profit or loss for the year ended 31 December 20X9 (10 marks). 12. To prepare the statement of financial position as at the date of 31 December 20X9 (20 marks). Additional information 218. During the year, a bonus issue of 1 share for every 4 held (The parv alue of the shares outstanding is $1) at 1 January 20x9 followed by a rig ht issue on 5 February 20X9 at $1.2 each. - The company sold a machine with a NBV of $15,000 for $12,000. - A five years loan of $100,000 was raised on December 31, 20X8 wit h annual interest rate of 6%, and the interest expense has not been charg Required: 1. What is the definiton of asset, liablity and equity? What are the the relationship between them? (5 marks) ed. 2. What is the definition of inventory? What is the difference betwee n inventory and non-current tangible assets? Please provide an ex ample to caculate the cost of goods sold frome opening inventory \closing inventory. (10 marks) 3. Why does company provide depreciation expense for non-current tangible assets? (5 marks) 28 Fundamental Accounting ,: oversea stude nts 4. Calculate related ratios and common Alex Ltd's long-term and sh ort-term solvency (10 marks). 5. Calculate the Inventory turnover period, Receivables collection pe riod and Payables payment period and explain it's working capital c yde (10 marks). Additional information 218. During the year, a bonus issue of 1 share for every 4 held (The parv alue of the shares outstanding is $1) at 1 January 20x9 followed by a rig ht issue on 5 February 20X9 at $1.2 each. - The company sold a machine with a NBV of $15,000 for $12,000. - A five years loan of $100,000 was raised on December 31, 20X8 wit h annual interest rate of 6%, and the interest expense has not been charg Required: 1. What is the definiton of asset, liablity and equity? What are the the relationship between them? (5 marks) ed. 2. What is the definition of inventory? What is the difference betwee n inventory and non-current tangible assets? Please provide an ex ample to caculate the cost of goods sold frome opening inventory \closing inventory. (10 marks) 3. Why does company provide depreciation expense for non-current tangible assets? (5 marks) 28 Fundamental Accounting ,: oversea stude nts 4. Calculate related ratios and common Alex Ltd's long-term and sh ort-term solvency (10 marks). 5. Calculate the Inventory turnover period, Receivables collection pe riod and Payables payment period and explain it's working capital c yde (10 marks). 6. What are the differences between inventory's carriage inward and carriage outward when we include them into the statement of profit or loss? (8 marks) 7. 1 November A company values its inventory using the first in, first out (FIFO) method. At 1 May 20x2 the company had 700 engines in inventory, valued at $190 each. During the year ended 30 April 20x3 the following transactions took place: 20x2 1 July Purchased 500 engines at $220 each Sold 400 engines for $160,000 20x3 1 February Purchased 300 engines at $230 each 15 April Sold 250 engines for $125,000 What is the value of the company's closing inventory of engines at 30 April 20x3? $188,500 $195,500 $166,000 None of these figures Workings are needed.) A B D (2 marks) 8. To make double entries and show its capital structure following: (a) A '1 for 4' bonus issue (b)A rights issue of 'l for 5' at $1.2 following the bonus issue, assuming all rights taken up (10 marks) 9. To make double entries for the machine disposed (5 marks). 10. To make double entries for the loan interest required (5 marks). 11. To prepare the statement of profit or loss for the year ended 31 December 20X9 (10 marks). 12. To prepare the statement of financial position as at the date of 31 December 20X9 (20 marks)