Presented below is the income statement of Grand Stores, Inc for 2020: Sales $560,000 Cost of goods sold ( 420,000) Gross profit $140,000 - Operating expenses ( 60,000) Income before taxes 80 ,000 - Income taxes 30% ( 24,000) Net income $ 56,000 Notes related to 2020: Operating expenses includes depreciation expense for the year for $ 7,000. Income taxes amount include $ 3000 related to Investing activities. The company does not include any interest or dividend cash flows in the operating section of the statement of cash flows.

In addition, the following Statement of financial position as follows: 31/12/2019 31/12/2020 Assets Cash 10,000 15,000 Treasury Bills (Maturity 70 days) 8,000 10,000 Accounts receivable 20,000 46,000 Prepaid income tax 5,000 3,000 Inventories 30,000 21,000 Property, Plant & Equipment (net) 40,000 30,000 Total assets 113,000 125,000 Liabilities and Owners Equity Accounts payable 16,000 21,000 Interest expense payable 8,000 0 Long-term Loan 33,000 22,000 Share Capital Ordinary 20,000 27,000 Retained Earnings 36,000 55,000 Total liabilities & Owners Equity 113,000 125,000

Instructions Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows using the indirect method. ___________ Jordan Corp.'s transactions for the year ended December 31, 2020 included the following: Sold non-trading investments for $500,000 cash. dividends Paid of $600,000. Issued 500 ordinary shares for $250,000 cash. Purchased equipment for $125,000 cash. Paid $450,000 toward a bank loan. accounts receivable Reduced by $100,000. Received cash dividends $20,000. Increased accounts payable $200,000. Purchased real estate for $550,000 cash which was borrowed from a bank. Instruction: Prepare a schedule computing the net cash flow from investing activities that would be shown on a statement of cash flows using the indirect method. Note: The company does not include any interest or dividend cash flows in the operating section of the statement of cash flows. ----------------------

In 2021, Hebron Corporation discovered that equipment purchased on January 1,2019, for JD 80,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no residual value. The income tax rate is 25 %. Instruction: Prepare journal entry to correct the error. Answer: ------------------ Answer the following questions: A) Ending inventory appears in west company on Dec 31, 2020 as follows:

Cost Net realizable value Raw materials 14000 11000 Finished goods 52000 55000

The ending inventory shall present in statement of financial position on Dec 31, 2020 at JD.

B) On December 1, 2020, Madaba company purchased goods on account as follows: The purchase price (deferred for 2 years) is $ 90,000. Note: the cash purchase price $ 75,000 shipping costs of goods $ 5000 Storage costs during December,2020 = $ 6000 advertisements in newspapers about the arrival of the goods $ 1000

As of 31/12/2020, it was found that 40 % of the goods are still on hand by the company. The cost of the inventory that will appear in the company's statement of financial position on 31/12/2019 is. JD

_____________________ Determine which True or False for the following statement. Statements Answer (True or False) 1- Agriculture inventories comprising agricultural produce that an entity has harvested from its biological assets are measured on initial recognition at their cost less costs to sell at the point of harvest 2- Unallocated overheads are recognised as part of the units produced in the period in which they are incurred 3- Normal amounts of wasted materials, labour or other production costs included in the cost of inventories 4- The allocation of fixed production overheads to the costs of conversion is based on the Actual capacity of the production facilities