Question
Complete the Transaction Analysis Worksheet Event TransactionEvent 1 The company repays $36745 of its borrowings. This amount includes $4793 of interest. The remaining borrowings are
Complete the Transaction Analysis Worksheet Event TransactionEvent 1 The company repays $36745 of its borrowings. This amount includes $4793 of interest. The remaining borrowings are to be repaid evenly over the following ten years.Event 2 The accountant determines that depreciation should be recorded at $12722. The accountant estimates that 10 percent of the depreciation is related to selling activities, with the remaining related to administration.Event 3 The company declares and pays a dividend of $10212 to its shareholders.Event 4 The company uses up the remainder of its previous prepaid insurance contract in the first four months of the fiscal financial year. The company then commences a new contract costing $7200 in total, all paid upfront, for the following 12 months including the last eight months of the financial year. The insurance related to administration. The accountant informs you that Other current assets related to prepaid accounts in the previous financial year.Event 5 The company purchased $374200 of inventory from its suppliers. The inventory was purchased on credit.Event 6 The company receives a rental payment for a car park it leases on a short-term basis to another entity of $5337.Event 7 The company makes payments to inventory suppliers of $353202.Event 8 The company purchased an additional $25000 of production equipment. Half was paid in cash, with the remaining on credit. The accountant determines that the credit amount should be allocated to other current liabilities.Event 9 The company collects $479639 from its trade receivables during the financial year.Event 10 The company pays rent of $8000 per month on a 12-month lease. The rent related to administrative offices.Event 11 The company makes total sales of normal goods and services of $561000. Of this amount $65000 was received in cash at the time of the sale.The value of goods sold in these transactions was $372200.Event 12 The company issued 2970 shares to new investors. These shares were issued at an average price of $20 per share.Event 13 The company paid all corporate income tax owing from the previous period. In addition, the company incurs a further $18727 in corporate income tax that it will pay next financial year.Event 14 The company paid all wages owing from the previous period, which made up the total opening balance of Other current liabilities. In addition, the company paid wages costs of $11000. These wages relate 40 percent to administrative expenses, and the remainder to selling expenses.
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