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Cocoa Corp. prepares their financial statements in accordance with IFRS. The company has a December 31 year end and you are responsible for preparing the

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Cocoa Corp. prepares their financial statements in accordance with IFRS. The company has a December 31 year end and you are responsible for preparing the financial statements for the December 31, 2020 year end. These transactions occurred in the year: a) During the year, customers paid advances in the amount of $310,000 of which $72,000 was earned by December 31, 2020. b} On December 4, 2020 Cocoa Corp, declared a $1.50 dividend per common share to be paid January 1, 2021. There were 35,000 outstanding common shares on the declaration date. c) On November 1, 2020, Cocoa Corp, borrowed $500,000 at 7% per year. Interest is paid semi-annually. d) On December 15, 2020 an employee filed a sexual harassment suit against the company for $180,000. Management does not believe they did anything wrong and this opinion is shared with Cocoa Corp's legal council. The likelihood that Cocoa Corp, will have to pay the employee is remote. e) Cocoa Corp's credit sales for the year were $800,000. The company records an expense provision in the amount of 2% of credit sales. Based upon the 2020 tax calculations, Cocoa Corp, expects to pay $87,000 in Income taxes related to their 2020 earnings. The balance will be paid by the June 30, 2021 deadline Required (9 marks): 1) For each item above state whether or not it would be reported as a current liability. If it is a current liability, state the amount that should be recorded. If it is not explain why. If any assumptions are made, please state them.) Tree your answer and somit LA Cocoa Corp. prepares their financial statements in accordance with IFRS. The company has a December 31 year end and you are responsible for preparing the financial statements for the December 31, 2020 year end. These transactions occurred in the year: a) During the year, customers paid advances in the amount of $310,000 of which $72,000 was earned by December 31, 2020. b) On December 4, 2020 Cocoa Corp. declared a $1.50 dividend per common share to be paid January 1, 2021. There were 35.000 outstanding common shares on the declaration date. on November 1, 2020, Cocoa Corp. borrowed $500,000 at 7% per year. Interest is paid semi-annually. di on December 15, 2020 an employee filed a sexual harassment suit against the company for $180,000. Management does not believe they did anything wrong and this opinion is shared with Cocoa Corp's legal council. The likelihood that Cocoa Corp. will have to pay the employee is remote. e) Cocoa Corp's credit sales for the year were $800,000. The company records an expense provision in the amount of 2 of credit sales. Fl Based upon the 2020 tax calculations, Cocoa Corp. expects to pay $87,000 in income taxes related to their 2020 earnings. The balance will be paid by the June 30, 2021 deadline. Required 19 marks) For each item above state whether or not it would be reported as a current ability. If it is a current liability, state the amount that should be recorded if it is not explain why of any assumptions are made, please state them. TRESORATORIES

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