Ouestion 7 Not yet answered Marked out of 1.00 The accounting cycle for Brazil Pavement Cement Hills Limited is from January 1 to December 31. At the start of April, the company signed an agreement to purchase a new factory for $10,000,000. The company paid 50% in cash and the remainder by taking out a 10 year loan. Annual interest expense on the loan is $800,000. Interest will be paid in cash on March 31 each year of the loan period. Annual depreciation on the new factory is $1,200,000 At the end of the accounting cycle the CFO of Brazil Pavement Cement Hills Limited estimated that the new factory would have increased electricity and water usage for a full year by 20%. Utility expenses (that comprised electricity and water) totalled $4,000,000 for the last full year. Required: At the end of the accounting cycle Brazil Pavement Cement Hills Limited would have made adjustment entries to 'interest Payable' and 'Utility Expenses' of the following amounts? Flag question O Select one a. Credit. Interest Payable - $800,000; Debit. Utility Expense - $4,600,000 O b. Credit. Interest Payable - $600,000; Debit. Utility Expense - $4,600,000 c. Debit. Interest Payable - $800,000; Credit. Utility Expense - $4,600,000 O d. Credit. Interest Payable - $600,000; Debit. Utility Expense - $4,800,000 On 1 July 2019 Canada Traders paid $1 200, representing a two-year insurance premium. The 1 200 was initially recorded in the Insurance expense account. After adjustment at 31 December 2020, the close of the annual accounting period: Question 8 Not yet answered Marked out at 1,00 P Flag question Select one: a. insurance expense in the income statement is $300 and prepaid insurance in the balance sheet is $900. O b. insurance expense in the income statement is $300 and prepaid insurance in the balance sheet is $900. 0 c. insurance expense in the income statement is $1 200 and prepaid insurance in the balance sheet is $0. d. insurance expense in the income statement is $900 and prepaid insurance in the balance sheet is $0. Ouestion 6 Not yet answered Marked out of 1.00 P Flag question Bobby Bones has just joined Bad Manufacturing Limited. His first task is to prepare the financial statements of the company for the end of the accounting cycle, He was provided with the following list of post-adjustment trial balances. Account Name Debit Credit Accounts Payable 58,920,000.00 Accounts Receivable $13,500,000.00 Accumulated Depreciation: Vehicles $55,000,000.00 Administration and General Expenses $21,800,000.00 Cash at the Bank $13,500,000.00 COS Cost of Goods Sold $45,000,000.00 Vehicles wa $145,000,000.00 Interest Payable $5,500,000.00 Interest Revenue $1,250,000.00 Land $7,100,000.00 Long-Term Investments $5,900,000.00 Long-Term Loans $65,000,000.00 Merchandise Inventory $7,750,000.00 Prepaid Expenses S2,120,000.00 Retain Earnings $11,545,000.00 Sale Returns and Allowances $2,450,000.00 Sales and Distribution Expenses $49,000,000.00 Sales Discounts $2,240,000.00 Sales Revenue (Gross) $145,000,000.00 Share Capital $41,000,000.00 Tax Expenses $5,400,000.00 Unearned Revenue $1,450,000.00 Required: When presenting the income statement, what amount of net income will be reported using post-adjustment trial balances? Select one: O a. None of the options 0 . b. ($34,640,000) 0 c. $20,360,000 O d. 574,050,000 O e. $78,000,000
